Efforts to modernise ground transportation at the Murtala Muhammed International Airport (MMIA), Lagos, could create new affordability, competition and livelihood challenges if regulators fail to design a realistic transition pathway for drivers and passengers, a new policy brief has warned.
The report, titled “Modernising airport transport without leaving drivers and passengers behind: Transformative transport service dilemmas in Nigeria and lessons for global transport reform,” was published in August 2026 by the Transformative Transport Service Design Initiative (TRATSEDI), a research and engagement network focused on inclusive and user-centred transport systems.

It said the introduction of the Airport Car Hire Rank Management System and requirements around vehicle age at the Lagos airport were part of efforts to improve safety, accountability, service quality and operational order.
However, TRATSEDI cautioned that setting higher service standards without providing operators with affordable means of meeting them could shift the cost of reform to drivers and, eventually, passengers.

According to the report, many airport taxi operators may face substantial capital requirements if they are compelled to replace existing vehicles, potentially forcing drivers to borrow heavily, sell assets, increase fares, move their operations elsewhere or leave the market altogether.
The report argued that the issue should therefore not be reduced to a dispute over the age of vehicles, describing it as a broader transport ecosystem challenge involving regulation, technology, driver livelihoods, consumer welfare, competition and the wider economic environment.

Higher standards, higher costs
TRATSEDI said transport modernisation inevitably comes with costs, including vehicle replacement, digital systems, licensing, monitoring, maintenance, training and compliance.
Where individual drivers are required to finance substantially more expensive vehicles without access to affordable credit, it said, the burden of transformation effectively falls on providers.

The report warned that operators could pass part of these costs to passengers through higher fares.
“Better transport standards do not automatically produce better transport outcomes,” the policy brief argued, saying reforms should be assessed based on what they improve, what they cost, who bears the costs and whether the transport ecosystem can adapt.

It recommended alternatives including vehicle leasing, affordable credit, cooperative financing, phased compliance, credit guarantees, vehicle scrappage schemes and partnerships between financial institutions and vehicle suppliers.
The policy brief also examined the growing role of e-hailing platforms such as Uber and Bolt in airport transportation.

It noted that digital platforms have increased passengers’ ability to compare prices, identify drivers, make cashless payments and arrange journeys before or after arriving at the airport.
According to the report, competition between traditional airport taxis and e-hailing services could improve prices, vehicle quality, convenience and service experience.

However, it warned against viewing digital platforms as automatically synonymous with transformative mobility, noting that commissions, algorithmic management and changing contractual conditions could also shift costs and risks to drivers.
TRATSEDI called for a regulatory environment that allows traditional taxis and e-hailing platforms to compete under transparent and proportionate rules, while maintaining appropriate safety, identification and operational standards.

Calls for phased implementation
The report urged authorities to move from simply importing international “best practices” to developing solutions that are suitable for Nigeria’s economic and institutional realities.
It said a vehicle requirement that is relatively easy to meet in countries with affordable leasing and accessible commercial credit could impose a much heavier burden in an economy where vehicles are expensive and financing is costly.

TRATSEDI consequently advocated a “best fit” approach, arguing that a phased and financed transition could ultimately deliver higher standards without immediately excluding existing operators.
The organisation proposed a TRANSFORM Test for assessing transport reforms across nine areas: traveller wellbeing, regulatory purpose, affordability, network competition, service-provider livelihoods, financing the transition, operational feasibility, rights and inclusion, and monitoring and adaptation.

The framework is intended to ensure that reforms consider not only regulatory objectives but also their impact on passengers, drivers, digital platforms, financial institutions and the wider economy.
TRATSEDI said responsibility for successful transport transformation should be shared among regulators, transport operators, passengers, e-hailing platforms, financial institutions and government.

It called on airport authorities to establish clear standards and timelines, assess affordability and competition impacts, consult affected stakeholders before implementation and provide transparent enforcement and appeal mechanisms.
Financial institutions, it said, should develop leasing, asset-finance and credit products that reflect the income patterns of transport operators, while government could support the transition through guarantees, incentives and partnerships.

The report also recommended continuous monitoring of fares, waiting times, safety incidents, accessibility, passenger satisfaction, driver earnings and the number of participating providers.
It said such data would allow authorities to modify policies where evidence shows that reforms are producing unintended consequences.
“Do not mandate transformation without designing the transition”

In its conclusion, TRATSEDI maintained that Nigeria should continue pursuing safer vehicles, better passenger protection, cleaner transport, digital innovation and improved accountability.
But it stressed that the transition to those standards must itself be designed.

For airport transport, the organisation recommended phased vehicle requirements, financing and leasing arrangements, greater reliance on safety and roadworthiness assessments where appropriate, transparent fare structures and clear rules allowing legitimate e-hailing and airport taxi services to operate.
It also called for drivers and their representatives to be involved early in reform processes, rather than being consulted only after decisions have been taken.

The report’s central message is that modernising Nigeria’s airport transport system should not be measured solely by the age of vehicles or the sophistication of digital systems.
Rather, it said, successful transformation should produce a system that is safer, affordable, competitive, financially achievable and inclusive, while providing existing transport providers with a realistic pathway into the modernised system.

TRATSEDI said the lesson extends beyond Lagos airport to wider reforms involving electric mobility, informal transport, low-emission vehicles, digital payments and e-hailing regulation.
“Transport systems need to change. Higher standards matter. Technology matters. Safety matters. Sustainability matters. But how we get there matters too,” the report said.