Why airport cab operation and tariff upgraded – FAAN
The Federal Airports Authority of Nigeria (FAAN) has attributed the recent increase in the N500 tariff being paid by cab operators at airports to N1500 to significant changes in economic realities.
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FAAN said it had maintained the same rate for eight years while Nigeria has experienced substantial inflationary pressures, increases in operating costs, rising maintenance expenses, and considerable changes in the cost of doing business generally.
FAAN management made this position known while reacting to misleading representation on the increase by cab operators.
According to FAAN, “Contrary to suggestions that the tariff review is arbitrary or excessive, it is important to state that FAAN has maintained the existing operational tariff of N500 for over eight years despite significant changes in economic realities.
“During this period, Nigeria has experienced substantial inflationary pressures, increases in operating costs, rising maintenance expenses, and considerable changes in the cost of doing business generally.
“The adjustment from N500 to N1,500 should therefore be viewed within the context of prevailing economic realities and the need to sustain critical airport infrastructure and services. Even with the review, FAAN remains mindful of the challenges faced by operators and has continued to engage stakeholders constructively.“
FAAN said increase in tariff was done for passengers’ comfort and service excellence.
“Airports are the gateways to any nation and often provide the first and last impression of a country’s image. Consequently, FAAN has a responsibility not only to ensure safety and security but also to uphold service quality across all touchpoints that passengers encounter, including airport transportation services.
“The directive requiring airport cab operators to upgrade to newer vehicle models is informed by the need to improve reliability, comfort, safety, and overall passenger satisfaction. This is consistent with international best practices and aligns with FAAN’s ongoing efforts to elevate service standards across its airports.
“Passengers who utilise airport taxi services deserve clean, roadworthy, comfortable, and professionally maintained vehicles that reflect the premium environment expected of a modern international airport.”
On the deadline for vehicle upgrade, FAAN said ‘FAAN has demonstrated considerable flexibility and understanding regarding the implementation timeline for the vehicle upgrade policy.
“The matter was first discussed extensively with operators as far back as July 2024, when adequate notice was given to enable companies plan accordingly. Following requests from operators, the original deadline was subsequently extended to January 2026. Thereafter, an additional extension was granted until June 2026.
“These extensions were approved in recognition of the prevailing economic circumstances and to provide operators with sufficient time to comply with the requirements.
“In further demonstration of goodwill and consideration, FAAN is currently considering a final extension of the compliance deadline until October 2026. This additional period is expected to provide adequate opportunity for operators to align with the required standards.
“It must, however, be emphasised that the objective of the policy is not to punish operators or deprive anyone of legitimate business opportunities. Rather, it is to ensure that airport transportation services meet the quality standards expected by the travelling public.
“Given the multiple extensions already granted over a period exceeding two years, FAAN believes that operators have been afforded ample opportunity to prepare for compliance. As such, no further requests for extension are expected to be entertained beyond the proposed final deadline.”
FAAN said “it remains open to constructive dialogue and has consistently engaged operators on issues affecting their operations and the quality of service delivered to passengers.
“FAAN recognises the important role airport cab operators play in supporting passenger movement and contributing to the overall airport ecosystem. The Authority values this partnership and remains committed to maintaining a cordial and mutually beneficial relationship with all service providers operating within its facilities.
“The Authority therefore calls on all airport cab companies to embrace the upgrade initiative and work collaboratively towards the shared objective of providing safer, more efficient, and customer-focused services.
“As Nigeria’s foremost airport management organisation, FAAN will continue to pursue policies and initiatives that place passengers at the centre of service delivery while ensuring that airport operations reflect the standards expected of a modern aviation sector.
“The cooperation and understanding of all stakeholders are essential as we collectively strive to build airports that every Nigerian can be proud of.
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