Over 300 jobs in Nigeria’s airport cab-hire sector are at risk as the Federal Airports Authority of Nigeria (FAAN) moves to enforce an October 2026 deadline requiring operators to replace vehicles manufactured before 2012.
Chairman of the Airport Cab Operators, Prince Amosola, said the 17 licensed car-hire companies operating at the airport were struggling to meet the vehicle upgrade requirement, warning that its implementation could push hundreds of workers into an already saturated labour market.
Speaking to journalists in Abuja, Amosola said most operators could not afford to replace their existing vehicles with newer models, with a 2012 vehicle estimated to cost between N15m and N18m.
He said each of the 17 companies currently operated more than 50 vehicles, while FAAN had directed them to reduce their fleets to 30 vehicles per company in addition to enforcing the vehicle-age requirement.
“We have nothing less than 50 cars for each company times 17 companies. And finally they are telling us that we should bring it down to 30 cars from each company,” he said.
Amosola said the operators had appealed to FAAN and relevant authorities for more time to comply, arguing that the transition to newer vehicles should be implemented gradually.
He said the operators were also considering electric vehicles (EVs), following discussions with the Minister of Aviation and Aerospace Development, but added that the cost remained prohibitive.
“Even if you go to EV, how much is one EV? N38m,” he said, adding that operators needed more time to raise funds for the transition.
The operators said the proposed October deadline would affect not only business owners but also drivers and other workers who depend on airport cab operations for their livelihoods.
Ekwuemeaku Alex of Edom Comfort Auto Lease Ltd said the income generated by many operators was already low relative to their operating costs.
He said some operators could make between N20,000 and N25,000 from a trip, but after fuel and other expenses, drivers could be left with about N10,000.
Alex said airport cab operators faced different operating conditions from e-hailing services such as Bolt, which could secure return trips after dropping passengers.
“We only have one trip, just to town. We don’t have any other business to do in town. When we drop the passenger, we come back empty,” he said.
Alhaji Sulieman Maman of Leviticus Auto Car Service Ltd said operators were not opposed to upgrading their vehicles but objected to what they described as the abrupt implementation of the policy.
He said previous changes in vehicle requirements had been introduced gradually, giving operators time to dispose of old vehicles and acquire newer ones.
“From the beginning, even if there is going to be any change, they write to us. Then we now talk to our people. That’s okay, this is the situation now. In the next possibly one, two, three years, everybody should try as much as to change their cars,” Maman said.
He also alleged that FAAN’s introduction of additional cab companies had intensified competition for a limited number of passengers at the airports.
Gbenga Kolawole of Giant Motors Ltd rejected allegations that airport cab operators were exploiting passengers through excessive fares.
He said operators offered different categories of vehicles, ranging from standard cars to executive vehicles and SUVs, with fares varying according to the type of vehicle selected.
Kolawole added that rising fuel prices and airport-related charges had significantly increased the cost of providing the service.
Aliu Abdulazee Aliu of Gentle Drive said operators had been engaging FAAN over the vehicle upgrade policy but were unable to meet the requirement because of the high cost of replacement vehicles.
He said some operators had acquired their existing vehicles through hire-purchase arrangements and would struggle to finance another vehicle costing about N18m.
Aliu said the operators had proposed lowering the required manufacturing year to 2008 to give them more time to comply, but that the proposal was rejected.
He warned that the policy could have significant consequences for workers dependent on the sector.
“People that are going to lose their job, there are over 300,” he said.
The operators also questioned what they described as unequal treatment in the allocation of vehicles to different categories of transport operators at the airport.
They said they were not opposed to competition but wanted what they described as a level playing field among licensed operators.
Emmanuel Ikeh Sunday, Secretary-General of the Coalition of 17 Car-Hire Companies, said operators were also concerned about the implications of the vehicle-age policy for vehicles converted under the Presidential Compressed Natural Gas (PCNG) initiative.
According to him, about 80 percent of the operators’ vehicles were converted under the scheme introduced to cushion the impact of fuel subsidy removal.
He said more than 99 percent of the vehicles converted under the programme did not meet FAAN’s proposed 2012-and-above manufacturing requirement.
“If this policy is implemented, it is completely against the policy of the Renewed Hope Agenda of President Bola Ahmed Tinubu,” Sunday said.
He said the operators had written several letters to FAAN management and held meetings with officials to explain the implications of the policy, but claimed that their appeals had not received a substantive response.
The operators also raised concerns over increases in airport cab-related charges, including the operational tariff, which they said had risen from N500 to N1,500.
FAAN, however, said the tariff increase followed more than eight years without a review amid inflation and rising operating costs.
The authority also maintained that its vehicle upgrade policy was aimed at improving passenger safety, comfort and service quality.
FAAN said the vehicle replacement requirement had been communicated since July 2024 and that operators had received several extensions, including extensions to January and June 2026, before the final October 2026 deadline.
The authority warned that operators who fail to meet the vehicle requirements risk losing access to airport operations.
FAAN also clarified that it deals directly with registered corporate cab companies rather than third-party unions or associations.
