More than 300 taxi, car-hire, and related logistics jobs at Nigerian airports are under threat as the Federal Airports Authority of Nigeria (FAAN) enforces an October 2026 deadline. This requires operators to replace vehicles manufactured before 2012 with later models. Prince Amosola, Chairman of the Airport Cab Operator's, stated that 17 licensed car-hire companies operating at the airport struggle to meet the vehicle upgrade requirement.
The cost of replacing existing vehicles with newer models is estimated at between N15 million and N18 million per vehicle, a significant burden for operators. Each of the 17 companies has over 50 vehicles, but FAAN now requires them to reduce their fleets to 30 vehicles per company while enforcing the vehicle age requirement. Amosola warned that the policy could push hundreds of workers into an already saturated labor market.
Operators have appealed to FAAN and relevant authorities for more time to comply, arguing for a gradual transition to newer vehicles. They 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 one EV costing around N38 million. Operators need more time to raise funds for the transition.
The proposed October deadline affects not only business owners but also drivers and workers who depend on airport cab operations for their livelihoods. Ekwuemeaku Alex of Edom Comfort Auto Lease Ltd stated that many operators' income is low relative to their operating costs. Some operators make about N20,000 to N25,000 per trip, but after fuel and expenses, drivers are left with about N10,000.
Alhaji Sulieman Maman of Leviticus Auto Car Service Ltd said operators are not opposed to upgrading their vehicles but object to the abrupt implementation of the policy. Previous changes in vehicle requirements were introduced gradually, allowing operators time to dispose of old vehicles and acquire newer ones. Maman also alleged that FAAN's introduction of additional cab companies has intensified competition for a limited number of passengers.
Gbenga Kolawole of Giant Motors Ltd rejected allegations that airport cab operators exploit passengers through excessive fares. Operators have different categories of vehicles, with fares varying according to the type of vehicle selected. Kolawole stated that the cost of fuel and airport-related charges has significantly increased the cost of providing the service. Aliu Abdulazee Aliu of Gentle Drive said operators had been engaging FAAN over the vehicle upgrade policy but were unable to meet the proposed requirement.
FAAN says the upgrade targets safety, and the tariff increase followed more than eight years without a review amid inflation and rising operating costs. The authority has warned that operators who fail to meet the vehicle requirements risk losing access to airport operations. With the October deadline approaching, airport cab operators are calling for further engagement and a longer transition period to avoid business closures and unemployment.
Key points
- Over 300 jobs are at risk due to FAAN's vehicle upgrade policy.
- The policy requires operators to replace vehicles manufactured before 2012 with newer models by October 2026.
- Operators struggle to meet the requirement due to the high cost of replacement vehicles.
