FAAN Suspends Bolt Operations at All Federal Airports Over Concession Agreement

The Federal Airports Authority of Nigeria (FAAN) has suspended the operations of e-hailing platform Bolt at all federal airports across the country over the absence of a valid concession agreement.

The directive was conveyed in a letter signed by FAAN's Director of Commercial and Business Development, Adebola Joy Agunbiade, ordering the company to halt all commercial activities within airport premises with immediate effect.

"You are hereby directed to cease all commercial operations at all FAAN-managed airports in the country with immediate effect," the letter stated.

According to FAAN, the suspension is intended to ensure Bolt complies with the Authority's regulatory and operational requirements, emphasizing that no commercial operator is permitted to conduct business within its facilities without a duly executed concession agreement.

The Authority instructed Bolt to remain suspended until the concession agreement is finalised and formally executed.

"You are therefore requested to suspend all operations at all FAAN-managed airports until the concession agreement has been duly finalised and executed. The Authority will notify you accordingly once the process has been concluded," the letter added.

The suspension will remain in force pending the completion of the concession process.

Background to the dispute

Airport passenger pick-ups have traditionally been dominated by licensed airport taxi operators, who are often criticised for charging significantly higher fares than regular e-hailing services.

In response to growing demand from travellers for alternatives such as Bolt and Uber, FAAN allocated designated parking spaces to e-hailing operators in 2022.

Bolt was reportedly the only e-hailing company that met the requirements to secure a concession, granting its drivers access to airport parking and permission to pick up passengers within airport premises.

However, the arrangement later generated controversy after drivers alleged they were required to pay ?45,000 to use the designated parking facility.

Drivers were also reportedly required to wear Bolt-branded uniforms, undergo biometric verification, obtain a police character certificate, and secure final approval from the Directorate of Aviation Security (AVSEC) before operating at the airports.

Despite the concession, many drivers questioned the value of the arrangement, arguing that e-hailing services operate through mobile applications rather than traditional taxi parks and therefore do not require dedicated parking spaces.

Some drivers also cited stiff competition and occasional harassment from conventional airport taxi operators, making airport operations less profitable.

Industry sources further suggested that Bolt had begun reconsidering the economic value of maintaining the airport concession, with reports indicating the company was unlikely to renew the agreement because many drivers continued picking up passengers through the app regardless of the designated parking facility.

FAAN has maintained that Bolt can only resume operations at federal airports after the concession agreement is successfully concluded and executed.