Federal Airports Authority: Denies Uber Nigeria Exit Responsibility

• FAAN Managing Director Olubunmi Kuku stated the agency is not responsible for Uber's departure from Nigeria.
• FAAN's regulatory actions at airports are aimed at enhancing passenger safety, ensuring accountability, and combating touting.
• The authority intervened following numerous passenger complaints about unpleasant experiences with e-hailing and car-hire services, including intimidation and inflated fares.
• FAAN's newly introduced system, ACHRAMS, is designed to provide transparency by giving passengers information about car-hire operators and drivers.
• The agency clarified it does not operate car-hire services or collect payments, only providing indicative rates for transparency.

The Federal Airports Authority of Nigeria (FAAN) has firmly stated it bears no responsibility for Uber's decision to cease operations in the Nigerian market, asserting that its regulatory interventions are solely driven by a commitment to passenger safety, accountability, and the eradication of touting at its facilities.

The Federal Airports Authority of Nigeria (FAAN) has firmly stated it bears no responsibility for Uber's decision to cease operations in the Nigerian market, asserting that its regulatory interventions are solely driven by a commitment to passenger safety, accountability, and the eradication of touting at its facilities. Olubunmi Kuku, the Managing Director of FAAN, clarified the agency's position, emphasizing that Uber's exit is an internal matter for the company, likely influenced by its own economic and regulatory considerations.

This declaration comes weeks after FAAN temporarily halted commercial pick-ups by e-hailing drivers at its airports, pending the finalization and execution of new licensing agreements. This temporary ban had fueled speculation among many observers who suggested that FAAN's actions were intended to clear the path for its recently introduced airport car hire rank management system, known as ACHRAMS. However, Kuku explicitly distanced FAAN from Uber's operational choices, reiterating that the authority's primary concern remains the protection of travelers and ensuring a smooth, secure travel experience for all.

FAAN's intervention in airport ground transportation services was a direct response to a surge in passenger complaints, particularly during the busy December holiday period. Travelers reported numerous unpleasant experiences with both e-hailing and traditional car-hire services operating around the airports. These grievances ranged from instances of intimidation and passengers being dropped off at unintended locations to more serious incidents, highlighting significant gaps in service quality and passenger protection.

Further compounding these issues, the FAAN chief alleged that some drivers, ostensibly operating for e-hailing platforms, exploited the airport system. These individuals would reportedly pose as legitimate e-hailing operators before collaborating with conventional car-hire services to charge passengers significantly higher fares. Coupled with widespread complaints about touting—the aggressive solicitation of customers—at the airports, these developments underscored the urgent need for FAAN to establish robust regulatory oversight for all car-hire operators to safeguard public interest and maintain order.

In response to these challenges, FAAN introduced a new system, ACHRAMS, which is specifically designed to enhance transparency and provide passengers with crucial information. This platform allows travelers to gain visibility into the identities of the car-hire companies and the specific drivers responsible for their journeys from pick-up to destination. The Managing Director stressed that this initiative is purely for regulatory and informational purposes, clarifying that FAAN neither operates the car-hire services directly nor collects payments on behalf of the drivers.

Kuku further explained that the drivers utilizing the airport's car-hire services are not FAAN employees. The authority's role is limited to providing indicative rates based on the passenger's destination, aiming to offer a baseline for fair pricing. Addressing concerns about the cost of airport car-hire services, she acknowledged that higher fares are often inherent to their business model. Ultimately, FAAN maintains that passengers retain the freedom to choose their preferred mode of transport, whether it be pre-booking a vehicle or using an e-hailing application, underscoring a commitment to market choice within a regulated environment.

Lawyers advising e-hailing or car-hire services operating at Nigerian airports should note FAAN's clarified stance on its regulatory oversight, particularly concerning passenger safety, touting, and licensing. This indicates a continued focus on compliance for transport operators at airports, potentially requiring a review of operational agreements and adherence to FAAN's new platforms like ACHRAMS to avoid disruptions.

Source: Reporting from Nigerian media sources.