FAAN denies Uber's exit is linked to airport rules

The Federal Airports Authority of Nigeria (FAAN) has denied claims that its rules on e-hailing at airports led to Uber’s exit from Nigeria.

FAAN's Managing Director, Olubunmi Kuku, stated that Uber's decision to leave was purely a business matter and had nothing to do with FAAN’s regulations for transport at airports.

While speaking to reporters on Friday at the Murtala Muhammed Airport in Lagos, Ms Kuku addressed recent concerns about Uber’s departure and the ongoing issues between FAAN and e-hailing services.

Uber announced on September 2 that it was stopping operations in Nigeria after 12 years. The company said this decision was based on a review of its changing business goals and investment plans across Africa.

PREMIUM TIMES had reported earlier that Uber specifically mentioned its exit was not related to FAAN's recent directive on e-hailing operations at Nigerian airports.

Ms Kuku explained that FAAN does not control Uber’s overall operations in Nigeria.

"I can’t speak to their exit from Nigeria. I’m sure they have their own economic and regulatory considerations as to why they chose to exit," she said.

She added that Uber had been thinking about leaving for a while and that airport operations were just a tiny part of what the company does in Nigeria.

"So, it has nothing to do with FAAN. Again, the airport is just a small part of the wider area in which they operate within Nigeria," she noted.

Why FAAN limited e-hailing services

The issues around e-hailing services at Nigerian airports started weeks before Uber left.

On July 30, FAAN instructed airport managers to stop Uber and Bolt from operating at airports it manages until license agreements with the companies are finalized.

This order raised worries among passengers and service providers. Many travelers complained about having trouble getting their usual ride-hailing services and faced higher fares for other means of transport from the airport.

PREMIUM TIMES reported that this situation led the Minister of Aviation and Aerospace Development, Festus Keyamo, to tell FAAN to respond to passengers’ concerns. Bolt later reached an agreement with FAAN and was allowed to restart operations at the airports.

FAAN later clarified that its order should not be seen as a full ban on e-hailing services.

The authority explained that its focus was on how transport services operate in a highly regulated airport environment. This includes issues like passenger safety, driver identification, and accountability.

Ms Kuku mentioned that FAAN received various complaints, especially during the December holiday season, about passenger experiences with some e-hailing and car-hire services.

She said complaints included intimidation, drivers taking passengers to wrong locations, and other issues that raised concerns about driver identification and accountability.

She noted that some e-hailing drivers allegedly worked alongside car-hire operators, charging passengers more money.

"We also had situations where some Uber and Bolt drivers would get out of their cars under the guise of coming into the airport as e-hailing drivers, and then join the car-hire operators to charge higher fares," she said.

These complaints led FAAN to seek more regulatory control over transport services at its airports.

What ACHRAMS does

The disagreement also highlighted FAAN’s Airport Car Hire Rank Management System, known as ACHRAMS.

Some passengers and industry watchers wondered if this system was meant to replace e-hailing services like Uber and Bolt.

FAAN has consistently denied this claim.

The authority stated that ACHRAMS is not an e-hailing app but a system made for the airport. It aims to give operational visibility, driver tracking, and oversight of car-hire activities at FAAN-managed airports.

Ms Kuku said the system was set up mainly to help passengers know who is driving them from the airport.

"The app that was developed was strictly focused on ensuring that passengers have visibility into who the car-hire companies are and who the driver taking them from Point A to Point B is," she said.

She emphasized that FAAN does not run car-hire services or collect fares for drivers.

"FAAN does not collect money on behalf of the drivers. Those car-hire drivers are not FAAN drivers," she said.

According to her, FAAN only provides passengers with estimated fares for their trips, while passengers can choose from pre-booked vehicles, e-hailing platforms, and car-hire services.

Liability Issues

Ms Kuku mentioned that another big issue between FAAN and e-hailing companies was who is responsible for the drivers using their platforms. The companies wanted special pick-up areas at airports, which FAAN was ready to provide. But FAAN also wanted them to take more responsibility for the conduct and safety of the drivers working through their platforms.

She explained that the companies argued that the drivers were independent contractors, not employees.

This created a challenge for FAAN because passengers relied on the platforms’ safety features while the companies were hesitant to accept responsibility for the drivers.

"One of the issues we were struggling with the e-hailing companies over was largely around liability clauses," she said.

She maintained that FAAN’s main concern was to ensure that people offering transport at the airport could be identified and held accountable if issues arise.

"We received a lot of complaints, especially around the December holiday period, from passengers who used some of the e-hailing services, as well as car-hire services, and had very unpleasant experiences," she said.

Despite the disagreements, FAAN has said it is not against e-hailing services and wants to create a framework that allows them to keep serving passengers while also meeting airport safety standards.

Uber, on the other hand, has ended its 12 years in Nigeria, stating that its decision followed a review of its business priorities and was not caused by FAAN’s directive.