Nigeria Airport Cab Operators Warn of 300 Job Losses as FAAN’s Vehicle Upgrade Deadline Looms

Nigeria's airport taxi operators warn of potential job losses as the Federal Airports Authority of Nigeria (FAAN) enforces a 2026 deadline for vehicle upgrades, citing financial strain and operational challenges.

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Nyakundi Report

Newsroom 3 min read

Primary source BusinessDay Nigeria

The Federal Airports Authority of Nigeria (FAAN) is set to enforce a deadline requiring airport taxi operators to replace vehicles manufactured before 2012 with newer models by October 2026, threatening over 300 jobs at Nigerian airports. Prince Amosola, chairman of the Airport Cab Operators Association, highlighted that 17 licensed car-hire companies face significant financial hurdles, with the cost of a 2012 vehicle estimated at between N15 million and N18 million. Operators argue that the requirement to reduce fleets from 50 to 30 vehicles per company, coupled with the high cost of newer models, could force businesses to close and push workers into an already saturated labor market.

Amosola emphasized that operators have sought extensions, proposing a gradual transition to electric vehicles (EVs) following discussions with the Minister of Aviation and Aerospace Development. However, the cost of EVs, estimated at N38 million each, remains prohibitive. He noted that operators have already invested in vehicles through hire-purchase agreements, making it difficult to finance replacements.

Ekwuemeaku Alex of Edom Comfort Auto Lease Ltd described the financial strain on operators, stating that income from trips is often insufficient to cover fuel and operational costs. He explained that airport taxi drivers typically earn between N10,000 and N25,000 per trip after expenses, contrasting their single-trip model with e-hailing services like Bolt, which secure return journeys. Alhaji Sulieman Maman of Leviticus Auto Car Service Ltd criticized FAAN’s abrupt policy implementation, citing past gradual changes that allowed operators time to adapt. He also accused the authority of intensifying competition by introducing additional cab companies, further straining limited passenger demand.

Gbenga Kolawole of Giant Motors Ltd denied allegations of fare exploitation, stating that vehicle categories and fares vary based on service type. He attributed rising costs to increased fuel prices and airport charges. Aliu Abdulazee Aliu of Gentle Drive reiterated operators’ concerns, noting that 80% of vehicles are converted under the Presidential Compressed Natural Gas (PCNG) initiative, which does not meet FAAN’s 2012 manufacturing requirement. Emmanuel Ikeh Sunday, secretary-general of the Coalition of 17 Car-Hire Companies, argued that the policy contradicts President Bola Ahmed Tinubu’s Renewed Hope Agenda, as most PCNG-converted vehicles would be excluded.

FAAN has maintained that the vehicle upgrade policy aims to enhance passenger safety, comfort, and service quality. The authority stated that operators have received multiple extensions, including deadlines in January and June 2026, before the final October 2026 cutoff. It warned that non-compliance could result in loss of airport access. However, operators claim FAAN has not responded substantively to their appeals, including requests to lower the manufacturing year to 2008. The authority also cited a tariff increase from N500 to N1,500 as necessary to address inflation and rising operational costs.

With the deadline approaching, airport cab operators are urging FAAN to extend the transition period, warning that abrupt implementation could lead to business closures and mass unemployment. They emphasized the need for a

among licensed operators and addressed concerns over unequal vehicle allocation. The dispute underscores broader tensions between regulatory mandates and the economic realities faced by small-scale transport providers in Nigeria’s aviation sector.

The conflict highlights the challenges of balancing safety standards with the financial sustainability of local businesses. As FAAN prepares to enforce its policy, the fate of over 300 jobs and the future of airport taxi operations remain uncertain, with operators seeking further dialogue to avert a potential crisis.

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