Airport cab operators in Nigeria have appealed to the Federal Government to intervene and delay the implementation of the Federal Airports Authority of Nigeria (FAAN) vehicle upgrade deadline of 1 October. The operators claim that enforcement could cause hardship for many families and put over 300 jobs at risk. According to Prince Amosola, Chairman of the Airport Cab Operators, the 17 licensed car-hire companies operating at the airport are struggling to meet the vehicle upgrade requirement.
The FAAN vehicle upgrade policy requires operators to replace vehicles manufactured before 2012, with an estimated cost of between N15 million and N18 million per vehicle. Each of the 17 companies has more than 50 vehicles, but FAAN is now requiring operators to reduce their fleets to 30 vehicles per company while also enforcing the vehicle-age requirement. Amosola stated that the operators had appealed to FAAN and the relevant authorities for more time to comply, arguing that the transition to newer vehicles should be gradual.
The operators are also considering electric vehicles (EVs), following discussions with the Minister of Aviation and Aerospace Development. However, the cost of acquiring EVs remains prohibitive, with Amosola citing a cost of N38 million per vehicle. Ekwuemeaku Alex of Edom Comfort Auto Lease Ltd noted that the income generated by many operators was already low relative to their operating costs, with some operators making about N20,000 to N25,000 from a trip, but after fuel and other expenses, drivers could be left with about N10,000.
Alhaji Sulieman Maman of Leviticus Auto Car Service Ltd stated that the operators were not opposed to upgrading their vehicles but objected to what they described as an abrupt implementation of the policy. Maman suggested that a gradual transition over one to three years would be more feasible. He also alleged that FAAN's introduction of additional cab companies had intensified competition for a limited number of passengers at the airports.
The operators have been engaging FAAN over the vehicle upgrade policy but were unable to meet the proposed requirement because of the high cost of replacement vehicles. Aliu Abdulazee Aliu of Gentle Drive noted that some operators had acquired their existing vehicles through hire-purchase arrangements and would struggle to finance another vehicle costing about N18 million. Emmanuel Ikeh Sunday, secretary-general of the Coalition of 17 Car-Hire Companies, expressed concerns about the implications of the vehicle-age policy for vehicles converted under the Presidential Compressed Natural Gas (PCNG) initiative.
The operators claim that the vehicle upgrade policy contradicts the Renewed Hope Agenda of President Bola Ahmed Tinubu. They have written several letters to FAAN management and held meetings with officials to explain the implications of the policy, but claim that their appeals have not received a substantive response. The operators also raised concerns over increases in airport cab-related charges, including the operational tariff, which they said had risen from N500 to N1,500.
FAAN has stated that the tariff increase followed more than eight years without a review amid inflation and rising operating costs. The authority has also maintained that its vehicle upgrade policy is aimed at improving passenger safety, comfort, and service quality. FAAN has warned that operators who fail to meet the vehicle requirements risk losing access to airport operations. The airport cab operators are calling for further engagement and a longer transition period, arguing that an abrupt implementation could force businesses to close and push hundreds of workers into unemployment.
Key points
- The airport cab operators are seeking a delay in the implementation of FAAN's vehicle upgrade deadline to avoid potential job losses and financial strain.
- The operators claim that the cost of replacing vehicles with newer models is prohibitive, ranging from N15 million to N18 million per vehicle.
- The vehicle upgrade policy aims to improve passenger safety, comfort, and service quality, but the operators argue that a gradual transition is needed to avoid disrupting their businesses.
