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Uber’s exit from Nigeria has nothing to do with FAAN – Official

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The Federal Airports Authority of Nigeria (FAAN) has rejected claims that its restrictions on e-hailing operations at airports contributed to Uber’s decision to leave Nigeria.

FAAN Managing Director, Olubunmi Kuku, said the ride-hailing company’s exit was a business decision and was unrelated to the authority’s efforts to regulate commercial transportation within airport premises.

Speaking with journalists on Friday at the Murtala Muhammed Airport in Lagos, amid renewed questions over the timing of Uber’s departure and the recent disagreement between FAAN and e-hailing operators.

Uber announced on 2 September that it was discontinuing operations in Nigeria after 12 years in the country, saying the decision followed a review of its evolving business priorities and investment focus across Africa.

PREMIUM TIMES had earlier reported that the company specifically said its exit was not related to the recent FAAN directive on e-hailing operations at Nigerian airports.

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FAAN Managing Director said the airport authority had no control over Uber’s wider 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,” Ms Kuku said.

She added that Uber had been considering its departure for some time and that airports accounted for only a small part of the company’s activities 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 restricted e-hailing operations

The controversy over e-hailing services at Nigerian airports began weeks before Uber’s departure.

On 30 July, FAAN directed airport managers to stop Uber and Bolt from conducting commercial operations at airports under its management pending the finalisation and execution of licence agreements with the companies.

The directive raised concerns among passengers and operators, particularly after travellers reported difficulty accessing familiar ride-hailing services and paying higher fares for alternative airport transportation.

PREMIUM TIMES reported at the time that the development also prompted Minister of Aviation and Aerospace Development, Festus Keyamo, to direct FAAN to address passengers’ concerns. Bolt subsequently reached an operational agreement with FAAN and was cleared to resume services at airports managed by the authority.

FAAN later said the directive should not be interpreted as a blanket ban on e-hailing services.

The authority said its concern was how commercial transportation activities were conducted within a highly regulated airport environment, particularly issues of passenger safety, identification, accountability and solicitation.

Ms Kuku said the authority had received several complaints, particularly during the December holiday period, about passengers’ experiences with some e-hailing and car-hire services.

She explained that the complaints included intimidation, passengers being taken to unintended locations, and other incidents that raised concerns about the ability to identify drivers and hold them accountable.

According to her, there were also cases where some e-hailing drivers allegedly operated alongside car-hire operators and charged passengers higher fares.

“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.

She noted that the complaints prompted FAAN to seek greater regulatory oversight of commercial transportation within its airports.

What ACHRAMS is for

The dispute also drew attention to FAAN’s Airport Car Hire Rank Management System, known as ACHRAMS.

Some passengers and industry observers had questioned whether the platform was designed to replace existing e-hailing services such as Uber and Bolt.

FAAN has repeatedly denied this.

The authority said ACHRAMS is not an e-hailing application but an airport-specific system designed to provide operational visibility, tracking, driver identification and oversight of commercial car-hire activities within FAAN-managed airports.

Ms Kuku said the system was introduced primarily to ensure passengers could identify the company and driver conveying 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 stressed that FAAN does not operate the car-hire services or collect fares on behalf of 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 indicative fares for their destinations, while passengers remain free to choose among pre-booked vehicles, e-hailing platforms, and car-hire services.

Dispute over liability

Ms Kuku said another major point of disagreement between FAAN and e-hailing companies was liability for drivers using their platforms, adding that the companies wanted dedicated pick-up areas at airports, which FAAN was willing to provide. Still, the authority also wanted them to accept greater responsibility for the conduct and safety of drivers operating through their platforms.

READ ALSO: Uber exits Nigeria after 12 years of operation

According to her, the companies argued that the drivers were independent contractors rather than their employees.

She said this created a difficulty for FAAN because passengers were directed to rely on the platforms’ safety features, while the companies were reluctant 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 maintained that FAAN’s central concern was ensuring that people providing transportation within airport premises could be identified and held accountable when problems arose.

“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 dispute, FAAN has said it is not opposed to e-hailing services and wants to reach an operational framework that allows them to continue serving passengers while meeting airport safety and security requirements.

Uber, however, has now ended its 12-year presence in Nigeria, maintaining that its decision followed a review of its business priorities and was not caused by the FAAN directive.


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Small Businesses that can Improve your Pension Contributions

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BY NKECHI NAECHE-ESEZOBOR—As a worker, it is good to engage in side hustles to improve your pension contributions monthly, quarterly, half-yearly, or even yearly.

Ideas for Small Businesses

POS: This is one of the cheapest businesses to start. With as little as N100,000, this business will take off. You can set aside a fixed percentage of your side income as your pension contribution.

Retail business: Provisions, foodstuffs, and even catering services such as small chops groundnuts, popcorn, snacks are also side hustles that can contribute to your pension savings.

Laundry services: This is another idea that is affordable and easy to start without needing much money. It can be set up on a small scale.

Vegetable farming / poultry or fish farming: Vegetables such as ugu, okro, ewedu, efo shoko, and efinrin can be planted in jerrycans and empty rice bags. You can get a carpenter to build small chicken pens so you can start your poultry business. For catfish, you just need bowls and a small space.

Service provider: Services such as freelance writing, transcription, and lecturing as a lesson teacher for WAEC, GCE,NECO JAMB, French, etc. can be done while still in active service. Some of these can be done on weekends, part-time, or even online.

You don’t need to struggle in retirement if you do the right thing.

The post Small Businesses that can Improve your Pension Contributions appeared first on Business Today NG.

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Dangote Foundation to gift refinery shares to 778,000 women in 15 states

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The Aliko Dangote Foundation (ADF) has said 777,907 vulnerable women across 15 Nigerian states are on track to benefit from 15.56 million shares in Dangote Petroleum Refinery and Petrochemicals under its Women Share Subscription Grant Initiative.

In a statement issued on Sunday by Zouera Youssofou, its managing director/CEO, the foundation said the programme aims to promote financial inclusion and empower women through equity ownership in one of Africa’s largest industrial investments.

“A total of 777,907 underprivileged Nigerian women across 15 states are set to benefit from 15.56 million shares in Dangote Petroleum Refinery and Petrochemicals IPO under the Aliko Dangote Foundation’s (ADF) Women Share Subscription Grant Initiative,” the statement said.

The initiative forms part of the foundation’s broader target of empowering two million vulnerable women across Nigeria’s 36 states and the Federal Capital Territory (FCT), it stated further.

The foundation said 15 state governments have committed to participating in the programme, under which each state’s financial contribution will be matched by the foundation to provide beneficiaries with shares at no cost to the beneficiaries.

The participating states include Abia, Anambra, Borno, Ebonyi, Enugu, Gombe, Imo, Kebbi, Kwara, Lagos, Nasarawa, Niger, Plateau, Yobe and Zamfara.

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Last week, PREMIUM TIMES reported that the Dangote Petroleum Refinery and Petrochemicals extended its ongoing $1.6 billion IPO, originally scheduled to end on 13 October, by two weeks to enable broader participation across Africa, following robust, continent-wide interest.

Since its launch, the IPO has been heralded as the biggest-ever on the continent. It is offering 4.1 billion shares at N525 per unit, with a minimum subscription of 10 shares. Its green shoe option allows an additional 30 per cent of the shares on offer to be sold if it is oversubscribed.

In July, a private placement ahead of the IPO was 270 per cent oversubscribed, even though the original plan was to raise $2.5 billion.

The IPO attracted billions of naira within minutes of opening, with a couple of trading platforms, including Bamboo and Cowrywise, experiencing downtime on the first day on account of unprecedented subscription traffic.

Shares allocation

The foundation noted that Gombe State has emerged as the first participating state to make full payment towards the initiative, marking a milestone in its implementation.

Under the arrangement, each beneficiary is eligible to receive 20 shares at an indicative allocation price of N525 per share, giving each recipient an allocation valued at N10,500.

The state government will finance 10 shares per beneficiary, while the foundation will provide a matching contribution for the remaining 10 shares.

The initiative, according to the statement, seeks to extend the benefits of the IPO beyond institutional and high net-worth individuals to vulnerable women, many of whom may be participating in the capital market for the first time.

Rather than relying solely on conventional financial assistance, the programme intends to give beneficiaries ownership of productive assets and an opportunity to participate in long-term wealth creation.

The foundation’s target of reaching two million women across all 774 local government areas underscores its ambition to expand financial inclusion and broaden individual participation in Nigeria’s capital market.

ADF acknowledged the support of the Nigerian Exchange and the Securities and Exchange Commission in advancing the initiative’s financial inclusion objectives.

The programme runs simultaneously with the foundation’s Tertiary Students Share Subscription Grant Initiative, which is designed to support eligible students looking to participate in the IPO.

Under the students’ initiative, the foundation supports applications for 10 shares on behalf of each participating eligible student at no cost.


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