Airport cab operators in Nigeria have expressed concerns that the Federal Airports Authority of Nigeria's (FAAN) vehicle upgrade policy could lead to many drivers and small operators going out of business. The policy requires operators to upgrade to vehicles manufactured from 2012 onwards to improve safety, comfort, and service quality. However, the cost of replacing a vehicle can be as high as N18 million, which is a significant burden for many operators.
The operators, led by the Chairman of the Airport Cab Operators of Nigeria, Prince Amosola, briefed the press in Abuja on the development. They noted that the financial burden of replacing vehicles manufactured before 2012 is out of proportion with the earnings generated from airport cab operations. According to Amosola, the cost of some replacement cars ranges from N15 million to N18 million, which is beyond the reach of many drivers and small car-hire companies.
FAAN has communicated the requirement to operators since 2024 and has granted extensions to give them time to comply, with October 2026 proposed as the final deadline. However, the operators argue that the cost of acquiring qualifying vehicles remains a significant challenge. They also pointed out that the earnings of drivers are not sufficient to justify the cost of replacing vehicles. A driver's weekly earnings may be around N10,000, making it difficult to recover the investment in a new vehicle.
The operators' concerns are not just about the upfront purchase price but also about how long it would take to recover the investment from airport trips. A standard trip to town could attract a fare of about N25,000, but the vehicle could consume between N15,000 and N17,000 worth of fuel for the journey and return. Additionally, FAAN charges a N1,500 operational fee, leaving the driver with only about N4,000 from a N25,000 fare.
The operators have explored alternative options, including electric vehicles, following discussions with the Minister of Aviation and Aerospace Development, Mr. Festus Keyamo. However, the prices quoted for electric vehicles were even higher, ranging from N38 million. The operators are seeking a longer transition period that would allow them to continue operating their existing vehicles while gradually replacing them.
FAAN has maintained that the vehicle upgrade policy is intended to ensure that airport transport operators provide high-quality services to passengers. However, the operators argue that they are not opposed to competition from other transport providers or e-hailing companies but want all operators at the airport to compete under comparable conditions. They believe that the policy could lead to unequal competition and push many small operators out of business.
The Airport Cab Operators of Nigeria is seeking a more practical and realistic approach to the vehicle upgrade policy. They believe that a longer transition period and more affordable financing options would help them to comply with the policy without going out of business. The outcome of the negotiations between FAAN and the operators will determine the future of airport cab operations in Nigeria.
Key points
- - The cost of replacing vehicles manufactured before 2012 could push many drivers and small operators out of business. - The operators are seeking a longer transition period and more affordable financing options to comply with the policy. - FAAN's vehicle upgrade policy aims to improve safety, comfort, and service quality at Nigerian airports.
