Airport Cab Operators to FAAN: N18m Vehicle Upgrade May Push Us Out of Business

Airport cab operators in Abuja have warned that the cost of complying with the Federal Airports Authority of Nigeria (FAAN) vehicle upgrade policy could push drivers and small operators out of business.

The operators spoke to journalists in Abuja.

FAAN had directed airport cab operators to use vehicles manufactured from 2012 onwards as part of measures to improve safety, comfort and service quality.

The authority has given operators several extensions, with October 2026 proposed as the final deadline.

FAAN said the upgrade policy is aimed at ensuring that airport transport services provide clean, roadworthy and comfortable vehicles to passengers.

However, according to the operators, replacing vehicles manufactured before 2012 could cost between N15 million and N18 million, while earnings from airport trips remain too low to support the investment.

Prince Amosola, chairman of the airport cab operators, said operators were struggling to raise funds for replacement vehicles.

Amosola said operators were not opposed to upgrading their fleets but needed more time to mobilise funds.

He also said some electric vehicle options were being discussed at about N38 million, while another operator said a vehicle financing proposal they encountered was above N60 million.

Also, Ekwuemeaku Alex of Edom Comfort Auto Lease Ltd said drivers could make between N20,000 and N25,000 from a trip, but petrol and other expenses significantly reduce their earnings.

Alex said some drivers could take home about N10,000 from a week’s work because of the limited number of passengers and competition.

“A whole week? Because they have registered a lot of cars,” he said.

Alex said the large number of registered vehicles meant drivers could wait several days before getting another passenger.

On his part, Abdulazee Aliu, an official of Gentle Drive, said the situation was more difficult for operators who acquired vehicles through hire purchase.

“For one vehicle of N18 million, the principle of hire purchase is doubling the price,” Aliu said.

“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.”

Aliu said after other expenses, including maintenance and washing, the driver could be left with about N4,000.

Ikeh Sunday, secretary-general of the Coalition of 17 Car-Hire Companies, said operators were also concerned about vehicles converted under the presidential compressed natural gas (CNG) initiative.

He said about 80 percent of their vehicles had been converted to CNG, while more than 99 percent did not meet the 2012-and-above requirement.

The operators said they were seeking a longer transition period to enable them gradually replace their vehicles.