Business A.M
No Result
View All Result
Tuesday, June 23, 2026
  • Login
  • Home
  • Technology
  • Finance
  • Comments
  • Companies
  • Commodities
  • About Us
  • Contact Us
Subscribe
Business A.M
  • Home
  • Technology
  • Finance
  • Comments
  • Companies
  • Commodities
  • About Us
  • Contact Us
No Result
View All Result
Business A.M
No Result
View All Result
Home The business traveller & hospitality

FAAN’s modernisation agenda meets economic reality in airport taxi sector

by Business a.m.
June 23, 2026
in The business traveller & hospitality
FAAN’s modernisation agenda meets economic reality in airport taxi sector

Oluwadara Omiyale 

Airport taxi operators across Nigeria may face higher operating costs as the Federal Airports Authority of Nigeria (FAAN) moves to enforce a fleet upgrade policy aimed at improving transport service at the nation’s airport.

 

The authority said it is considering extending the compliance deadline to October 2026 following concerns raised by operators, but maintained that the vehicle upgrade programme remains necessary to improve service quality, safety standards and passenger experience.

 

The policy, which requires airport taxi operators to replace ageing vehicles with newer models, has generated concerns among transport providers who argue that the current economic environment makes compliance difficult.

 

FAAN said the initiative forms part of efforts to align airport transport operations with international best practices and ensure that airport users are served by clean, safe and professionally maintained vehicles.

 

In a statement issued by Henry Agbebire, the director of public affairs and consumer protection, FAAN dismissed claims that it had failed to engage operators on the matter, insisting that consultations had been ongoing for nearly two years.

 

According to FAAN, discussions on the upgrade programme began in July 2024, giving operators sufficient time to prepare for compliance. The authority noted that the initial deadline had already been extended on two occasions in recognition of prevailing economic realities.

 

The agency explained that the first extension moved the compliance date to January 2026, while a further adjustment shifted it to June 2026.

 

The latest proposal to move the deadline to October 2026 follows fresh concerns raised by operators over the cost of vehicle replacement and access to financing. For many airport taxi operators,the challenge goes beyond meeting regulatory requirements.

 

Industry participants say replacing older vehicles with newer models will require substantial investment at a time when inflation, exchange rate volatility and rising maintenance costs are already affecting transport businesses across the country.

Many operators rely on imported vehicles and spare parts, exposing them to foreign exchange pressures that have significantly increased acquisition and maintenance costs over the last two years.

 

The development has raised concerns that operators may be forced to increase fares in order to recover the costs associated with fleet renewal, such fare adjustments could ultimately be passed on to passengers, potentially increasing the cost of airport transportation at a time when travellers are already contending with higher airfares and inflationary pressures.

 

Despite the concerns, FAAN insists that the policy is not intended to punish operators or deprive them of business opportunities. Rather, the authority believes that upgrading airport taxi fleets will enhance service delivery and strengthen the overall image of Nigerian airports.

 

According to the agency, airport taxi services represent one of the first and last points of physical contact for many travellers, making service quality a critical component of the passenger experience.

 

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, the authority stated.

 

FAAN also clarified that its regulatory relationship exists with registered airport transport companies rather than associations or unions representing drivers.

The authority explained that operational engagements are conducted directly with licensed transport service providers in line with established procedures.

 

The clarification follows criticisms from some transport groups that claimed they had not been adequately consulted before the policy was introduced. However, FAAN maintained that stakeholder engagement has remained an integral part of the implementation process.

 

The proposed October deadline is expected to provide additional breathing space for operators seeking to modernise their fleets.

 

Meanwhile, FAAN has indicated that any further extension beyond the proposed timeline may be difficult to justify.

As discussions continue, stakeholders are expected to engage the authority on possible measures that could ease compliance costs while preserving the objective of improving passenger experience.

 

Business a.m.
Business a.m.
Previous Post

Qantas diversion shows even modern aircraft cannot escape weather economics

Next Post

All On backs Eja-Ice with $1m push into cold chain market 

Next Post
All On backs Eja-Ice with $1m push into cold chain market 

All On backs Eja-Ice with $1m push into cold chain market 

  • Trending
  • Comments
  • Latest

How UNESCO got it wrong in Africa

May 30, 2017

CBN to issue N1.5bn loan for youth led agric expansion in Plateau

July 29, 2025

Glo, Dangote, Airtel, 7 others prequalified to bid for 9Mobile acquisition

November 20, 2017
NGX taps tech advancements to drive N4.63tr capital growth in H1

Insurance-fuelled rally pushes NGX to record high

August 8, 2025

6 MLB teams that could use upgrades at the trade deadline

Top NFL Draft picks react to their Madden NFL 16 ratings

Paul Pierce said there was ‘no way’ he could play for Lakers

Arian Foster agrees to buy books for a fan after he asked on Twitter

All On backs Eja-Ice with $1m push into cold chain market 

All On backs Eja-Ice with $1m push into cold chain market 

June 23, 2026
FAAN’s modernisation agenda meets economic reality in airport taxi sector

FAAN’s modernisation agenda meets economic reality in airport taxi sector

June 23, 2026
Qantas diversion shows even modern aircraft cannot escape weather economics

Qantas diversion shows even modern aircraft cannot escape weather economics

June 23, 2026
United Nigeria Airlines’ Okonkwo seeks funding overhaul to unlock aviation sector growth 

United Nigeria Airlines’ Okonkwo seeks funding overhaul to unlock aviation sector growth 

June 23, 2026

Popular News

  • How UNESCO got it wrong in Africa

    0 shares
    Share 0 Tweet 0
  • CBN to issue N1.5bn loan for youth led agric expansion in Plateau

    0 shares
    Share 0 Tweet 0
  • Glo, Dangote, Airtel, 7 others prequalified to bid for 9Mobile acquisition

    0 shares
    Share 0 Tweet 0
  • Insurance-fuelled rally pushes NGX to record high

    0 shares
    Share 0 Tweet 0
  • Igbobi alumni raise over N1bn in one week as private capital fills education gap

    0 shares
    Share 0 Tweet 0
Currently Playing

CNN on Nigeria Aviation

CNN on Nigeria Aviation

Business AM TV

Edeme Kelikume Interview With Business AM TV

Business AM TV

Business A M 2021 Mutual Funds Outlook And Award Promo Video

Business AM TV

Recent News

All On backs Eja-Ice with $1m push into cold chain market 

All On backs Eja-Ice with $1m push into cold chain market 

June 23, 2026
FAAN’s modernisation agenda meets economic reality in airport taxi sector

FAAN’s modernisation agenda meets economic reality in airport taxi sector

June 23, 2026

Categories

  • Frontpage
  • Analyst Insight
  • Business AM TV
  • Comments
  • Commodities
  • Finance
  • Markets
  • Technology
  • The Business Traveller & Hospitality
  • World Business & Economy

Site Navigation

  • Home
  • About Us
  • Contact Us
  • Privacy & Policy
Business A.M

BusinessAMLive (businessamlive.com) is a leading online business news and information platform focused on providing timely, insightful and comprehensive coverage of economic, financial, and business developments in Nigeria, Africa and around the world.

© 2026 Business A.M

Welcome Back!

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In
No Result
View All Result
  • Home
  • Technology
  • Finance
  • Comments
  • Companies
  • Commodities
  • About Us
  • Contact Us

© 2026 Business A.M