Airport Cab Operators across Nigeria Sunday warned that the cost of complying with the Federal Airports Authority of Nigeria’s (FAAN) vehicle upgrade policy could push drivers and small operators out of business.
They noted that replacing a vehicle can cost as much as N18 million while a driver may take home only about N10,000 from a week’s work.
The operators, while briefing the journalists on the development in Abuja, said the financial burden of replacing vehicles manufactured before 2012 was out of proportion with the earnings generated from airport cab operations.
TheHintsNews reports that FAAN had required airport cab operators to upgrade to vehicles manufactured from 2012 onwards as part of measures to improve safety, comfort and service quality.
The agency explained that the requirement was communicated to operators from 2024 and that extensions were granted to give them time to comply, with October 2026 proposed as the final deadline.
However, the operators said the cost of acquiring qualifying vehicles remains beyond the reach of many drivers and small car-hire companies.
The Chairman of the association, Prince Amosola, noted that the operators had been struggling to acquire vehicles that meet the requirement, putting the cost of some replacement cars at between N15 million and N18 million.
His words: “From 15 million and above. 18 million and above. Operators are not opposed to upgrading their fleets but needed more time to mobilise funds.The challenge becomes clearer when compared with the earnings of drivers.
“The operators’ concern is not simply the upfront purchase price but how long it would take to recover such an 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, while FAAN also charges a N1,500 operational fee.
“After other expenses such as vehicle washing, maintenance and repairs, drivers could be left with only about N4,000 from a N25,000 fare.
“That vehicle that is carrying N25,000, if that vehicle will go to town, drop the passenger and come back, is going to buy fuel between N15,000 to N17,000.”
Amosola added that the operator’s calculation also reflects the wider cost pressure confronting airport transport operators.
He said FAAN increased its airport cab operational tariff from N500 to N1,500, saying the old charge had remained unchanged for more than eight years despite inflation, rising maintenance costs and broader economic pressures.
Amosola: “We have also explored electric vehicles following discussions with the Minister of Aviation and Aerospace Development, Mr. Festus Keyamo, the prices quoted were even higher.
“Some EV options were being discussed at about N38 million. We are seeking a longer transition period that would allow us to continue operating our existing vehicles while gradually replacing them.
“We were not opposed to competition from other transport providers or e-hailing companies but wanted all operators at the airport to compete under comparable conditions.”