Airport Taxi Operators have appealed to the Federal Airports Authority of Nigeria (FAAN) to extend the period of implementation of its directive on the upgrade of vehicles manufactured from 2012.
The cab operators, while speaking to journalists in Abuja, expressed concern that many small operators will be pushed out of business as replacement of their vehicles may cost as much as N18 million, with an estimated weekly profit of N10,000.
According to FAAN, the directive was issued in 2024 for cab operators to upgrade vehicles manufactured from 2012 onwards as part of measures to improve safety, comfort and service quality. The Authority had given them October as the deadline.
But the Chairman of the airport cab operators, Prince Amao Sola, said the cost of acquiring the vehicles remains beyond the reach of many drivers and small car-hire companies.
He said, “We have been struggling to acquire vehicles that meet the requirement, putting the cost of some replacement cars at between N15 million and N18 million.”
He said that although they are not opposed to upgrading their cars, they need more time to mobilise funds.
Another operator, Mr Ekwuemeaku Alex, who works with Edom Comfort Auto Lease Ltd, said although they charge about N20,000-N25,000 per trip, after deducting other expenses, their profit may be about N10,000 in a week.
He said due to the limited number of passengers patronising them, some drivers may wait for days before completing any trip.
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, wherein prices of vehicles are doubled.
He said their concern is not the upfront purchase price but how long it would take to recover such an investment from airport trips. “A standard trip from the airport 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 Festus Keyamo, Minister of Aviation and Aerospace Development, but said the prices quoted were even higher, as they range from N38 million to N60 million.
The operators appealed for a longer transition period that would allow them to continue operating their existing vehicles while gradually replacing them, saying they are not opposed to competition from other transport providers or e-hailing companies but want all operators at the airport to compete under comparable conditions.
The Secretary-General of the Coalition of 17 Car-Hire Companies, Emmanuel Ikeh Sunday, said the operators had also raised concerns over vehicles converted under the Presidential Compressed Natural Gas initiative. He disclosed that 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 said 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, saying although they are prepared to meet higher vehicle standards, they want FAAN to align the transition timetable with the capacity of small operators and drivers to finance replacement vehicles without losing their businesses.
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