‘We Can’t Afford N18m Cars’ Airport Cab Operators Tell FAAN
Airport cab operators are warning 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, with operators saying a replacement vehicle can cost as much as N18 million while a driver may take home only about N10,000 from a week’s work.
PAY ATTENTION: Find it fast with our new search feature at Legit.ng!
The operators, who spoke to journalists in Abuja, said the financial burden of replacing vehicles manufactured before 2012 was out of proportion with the earnings generated from airport cab operations.
Source: UGC
FAAN has required airport cab operators to upgrade to vehicles manufactured from 2012 onwards as part of measures to improve safety, comfort and service quality. The authority has said 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.
But the operators said the cost of acquiring qualifying vehicles remains beyond the reach of many drivers and small car-hire companies.
Prince Amosola, chairman of the airport cab operators, said 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.
“From 15 million and above. 18 million and above,” Amosola said when asked about the cost of a 2012 vehicle.
He said the operators were not opposed to upgrading their fleets but needed more time to mobilise funds.
The challenge becomes clearer when compared with the earnings of drivers.
Ekwuemeaku Alex of Edom Comfort Auto Lease Ltd said some drivers make about N20,000 to N25,000 from a trip, but after fuel and other operating expenses, the amount left for the driver could fall to about N10,000.
“A whole week? Because they have registered a lot of cars,” he said, explaining that the limited number of passengers and competition for trips meant some drivers could wait several days before getting another passenger.
Aliu Abdulazee Aliu of Gentle Drive said the economics of replacing the vehicles was particularly difficult for operators who had acquired their existing cars through hire-purchase arrangements.
He said a vehicle costing about N18 million could become substantially more expensive when acquired on credit because of financing costs.
“For one vehicle of N18 million, the principle of hire purchase is doubling the price,” Aliu said.
The operators' concern is not simply the upfront purchase price but how long it would take to recover such an investment from airport trips.
One operator said 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, he said the driver 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,” Aliu said.
The operators therefore argue that buying a vehicle costing between N15 million and N18 million cannot easily be financed from current earnings.
Their calculation also reflects the wider cost pressure confronting airport transport operators. 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.
FAAN has maintained that the vehicle upgrade policy is intended to ensure that airport transport services provide clean, roadworthy and comfortable vehicles to passengers rather than to deprive operators of business opportunities.
The authority has also said operators were given multiple extensions, including an extension to January 2026 and another to June, before the proposed final October deadline.
However, the operators argue that the market reality has changed faster than their ability to replace their fleets.
Current vehicle listings also show that the cost of a qualifying 2012 vehicle varies substantially depending on model, condition and whether it is Nigerian-used or foreign-used. In Abuja, current listings for 2012 Toyota Corolla models include prices ranging from about N4.5 million to N11.85 million, with the listing platform putting the average at about N6.8 million.
The difference between these market listings and the N15 million–N18 million figures cited by the operators suggests that the cost depends heavily on the type and specification of vehicle required for commercial airport operations.
The operators said they had also explored electric vehicles following discussions with the Festus Keyamo, Minister of Aviation and Aerospace Development, but said the prices quoted were even higher.
Amosola said some EV options were being discussed at about N38 million, while another operator said a vehicle financing proposal they encountered was above N60 million.
The operators said they were therefore seeking a longer transition period that would allow them to continue operating their existing vehicles while gradually replacing them.
They also said they 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.
Emmanuel Ikeh Sunday, secretary-general of the Coalition of 17 Car-Hire Companies, said the operators had also raised concerns over vehicles converted under the Presidential Compressed Natural Gas initiative.
According to him, about 80 percent of their vehicles had been converted to CNG, while more than 99 percent of the vehicles covered by the scheme did not meet the 2012-and-above requirement.
He argued that forcing the vehicles out of airport operations before operators had recovered their investments would create another financial burden.
For the drivers, the dispute is ultimately about whether their current earnings can support the cost of replacing the vehicles that provide their livelihoods.
The operators say they are prepared to meet higher vehicle standards but want FAAN to align the transition timetable with the capacity of small operators and drivers to finance replacement vehicles without losing their businesses.
Source: Legit.ng
