FAAN increases airport cab tariff to ₦1,500, sets October deadline for vehicle upgrade

• Federal Airports Authority of Nigeria has increased airport taxi tariff from ₦500 to ₦1,500, citing inflation, rising costs, and infrastructure maintenance needs.

• Airport cab operators under Nigeria Union of Private Cab Operators oppose the policy, especially the 2012 vehicle cutoff rule set for July 2026.

• FAAN says the vehicle upgrade and tariff changes aim to improve safety and service quality, and is considering a final compliance extension to October 2026, with no further extensions expected.

The Federal Airports Authority of Nigeria (FAAN) has defended its decision to raise airport cab operators' tariffs from ₦500 to ₦1,500 and enforce new vehicle standards, saying the measures are necessary to improve passenger experience and maintain service quality at the country's airports.

The clarification comes after airport taxi operators threatened to suspend services at the Lagos and Abuja international airports from July 1 over what they described as unfavourable policies introduced by the authority.

The operators, under the umbrella of the Nigeria Union of Private Cab Operators (NUPCO), had criticised FAAN's directive requiring airport taxis to stop using vehicles manufactured before 2012 from July 1, 2026.

Responding to the concerns in a statement on Monday, FAAN said airports are the first point of contact for many visitors and should reflect high standards of safety, comfort and professionalism.

According to the agency, the vehicle upgrade policy is designed to ensure that passengers using airport taxi services enjoy safer and more reliable transportation.

"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," FAAN said.

FAAN also explained that the increase in operational tariffs was driven by economic realities.

The authority noted that the previous ₦500 charge had remained unchanged for more than eight years despite rising inflation, increased operational costs and the need to maintain airport infrastructure.

"The adjustment from ₦500 to ₦1,500 should therefore be viewed within the context of prevailing economic realities and the need to sustain critical airport infrastructure and services," the statement said.

"Even with the review, FAAN remains mindful of the challenges faced by operators and has continued to engage stakeholders constructively."

The agency rejected claims that it had ignored airport cab operators, insisting that it regularly engages licensed transport service providers through established stakeholder channels.

FAAN explained that its official relationship is with registered cab companies operating at the airports, not necessarily with associations or unions representing drivers.

As a result, discussions on regulatory and operational matters are conducted directly with the licensed companies involved.

On the vehicle replacement policy, FAAN said operators were first informed about the requirement in July 2024 and have since benefited from multiple extensions.

The original compliance deadline was initially moved to January 2026 following requests from operators. A second extension was later granted until June 2026.

The authority disclosed that it is now considering what could be a final extension until October 2026.

"These extensions were approved in recognition of the prevailing economic circumstances and to provide operators with sufficient time to comply with the requirements," the statement added.

"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 standard.

"It must, however, be emphasised that the objective of the policy is not to punish operators or deprive any one of legitimate business opportunities.

"Rather, it is to ensure that airport transportation services meet the quality standards expected by the travelling public."

FAAN maintained that operators have had more than two years to prepare for the transition and indicated that any extension granted until October 2026 would likely be the last.

The authority said no further requests for deadline extensions are expected to be entertained beyond the proposed date.

It also reaffirmed its commitment to working with airport cab companies while pursuing reforms aimed at improving transport services for travellers using Nigeria's airports.

The disagreement highlights the broader challenge facing transport operators across the country, many of whom are struggling with rising vehicle costs, inflation and foreign exchange pressures, while regulators push for improved service standards in critical sectors.