FAAN Clarifies Uber Nigeria Airport Policy: Exit Was Business Choice

• FAAN Managing Director Olubunmi Kuku stated that Uber's exit from Nigeria was a business decision, not caused by airport e-hailing restrictions.
• FAAN temporarily halted e-hailing commercial pick-ups to finalize licensing agreements, following numerous passenger complaints about unpleasant experiences.
• Complaints included intimidation, wrong drop-offs, and drivers exploiting the system by charging higher fares.
• FAAN's new ACHRAMS app aims to improve transparency by allowing passengers to identify car-hire companies and drivers.
• FAAN's primary responsibility is passenger safety and ensuring they can identify their transporters, without dictating transport choice or collecting driver payments.

FAAN's paramount responsibility remains the safety and protection of passengers, alongside ensuring a seamless travel experience within the airport environment.

The Federal Airports Authority of Nigeria (FAAN) has publicly addressed speculation surrounding Uber's recent exit from the Nigerian market, asserting that the company's departure was not a consequence of airport e-hailing restrictions. Olubunmi Kuku, the Managing Director of FAAN, clarified the agency's position during a press briefing with journalists at the Muritala Muhammed Airport in Lagos on Friday. She firmly stated that Uber's decision to cease operations in Nigeria was a business choice, driven by its own economic and regulatory considerations, rather than FAAN's policies.

This statement from FAAN clarifies Uber Nigeria airport policy impacts, aiming to dispel notions that the authority's operational guidelines were a direct cause of the ride-hailing giant's withdrawal. Kuku underscored that FAAN's paramount responsibility remains the safety and protection of passengers, alongside ensuring a seamless travel experience within the airport environment. The agency's interventions are consistently geared towards these core objectives, irrespective of specific company operations.

FAAN's recent actions, including a temporary halt on commercial pick-ups by e-hailing drivers at its airports, were initiated to finalize and execute necessary license agreements. This move, which occurred a week prior to Kuku's statement, had fueled speculation that the restrictions were designed to promote FAAN's newly introduced airport e-hailing platform, ACHRAMS. However, Kuku explained that the intervention was a direct response to a surge in passenger complaints, particularly during the preceding December holiday period.

These complaints detailed numerous unpleasant experiences with both e-hailing and traditional car-hire services operating around the airports. Issues reported by passengers ranged from intimidation and being dropped off at unintended locations to more serious incidents. Furthermore, Kuku highlighted instances where some drivers, including those from platforms like Uber and Bolt, allegedly exploited the airport system by initially posing as legitimate e-hailing operators before collaborating with car-hire services to charge passengers significantly higher fares. This widespread issue of touting necessitated FAAN's regulatory oversight for car-hire operators to enhance passenger protection.

In response to these challenges, FAAN developed its proprietary application, ACHRAMS, with a primary focus on improving transparency for passengers utilizing airport transport services. Kuku emphasized that this app is strictly designed to provide visibility, enabling passengers to clearly identify the car-hire companies and the specific drivers responsible for their journeys from one point to another. This initiative is a crucial part of FAAN's commitment to enhancing safety and accountability within the airport transport ecosystem.

The Managing Director further clarified that FAAN neither operates the car-hire services directly nor collects payments on behalf of the drivers. The agency's role is limited to providing an indication of fare rates based on the passenger's destination. While acknowledging that airport car-hire services might charge higher fares due to their distinct business models, Kuku affirmed that passengers retain the freedom to choose their preferred mode of transport, whether it be pre-booked cars, e-hailing apps, or car-hire services. She reiterated that FAAN's jurisdiction does not extend to dictating passenger choice, but rather to ensuring that individuals can identify their transporters within the airport environment, aligning with broader Nigeria airport e-hailing rules.

Lawyers advising e-hailing or transport companies operating at Nigerian airports should note FAAN's continued emphasis on regulatory oversight for passenger safety and transparency, irrespective of specific company exits. This indicates a need for strict compliance with licensing and operational guidelines to avoid disruptions or penalties.

Source: Original reporting via Olasunkanmi Akinlotan