FAAN has vowed to block all revenue leakages across the nation’s airports with the full enforcement cashless payments
The Federal Airports Authority of Nigeria (FAAN) has intensified efforts to curb revenue leakages across the nation’s airports with the full enforcement of electronic payment and collection systems, signalling a major shift in its financial and operational processes.
The Managing Director and Chief Executive Officer of FAAN, Olubunmi Oluwaseun Kuku, disclosed this on Tuesday while speaking with journalists after appearing before the House of Representatives Committee on Finance.
The committee, chaired by James Abiodun Faleke, is conducting a Revenue Monitoring Exercise covering the 2023–2025 fiscal years, aimed at strengthening transparency and accountability in revenue generation by government agencies.
Kuku said FAAN has put in place robust mechanisms to ensure that all revenues generated at airports — particularly at toll gates and other collection points — are efficiently captured, transparently processed, and fully remitted to the Federal Government.
According to her, the initiative aligns with the Federal Government’s broader fiscal reform agenda focused on plugging revenue leakages, enhancing transparency, and boosting internally generated revenue across Ministries, Departments, and Agencies (MDAs).
While acknowledging that the cashless enforcement has caused temporary inconvenience for some airport users, Kuku described the reform as strategic and long overdue.
“This initiative is about accountability and sustainability,” she said. “We are ensuring that every kobo due to the Federal Government is collected without leakages, while also improving operational efficiency.”
She explained that the transition to a cashless system was not sudden, noting that preparatory measures — including public sensitisation campaigns, advertisements, and stakeholder engagements — began in mid-2025 to adequately prepare airport users for the shift away from cash transactions.
“The enforcement itself only commenced on Sunday,” Kuku said, adding that the renewed drive followed directives to strengthen revenue collection mechanisms and eliminate systemic leakages.
Addressing reports of traffic congestion at some airport toll gates in the early days of implementation, she described the situation as a temporary adjustment phase and appealed to Nigerians for patience and cooperation.
“We understand the initial discomfort, but this is a transition that will ultimately benefit everyone,” she said, assuring that the system would stabilise as more users adopt the available electronic payment channels.
Kuku also dispelled the notion that FAAN’s newly introduced cashless cards are the only payment option, stressing that the policy merely eliminates physical cash transactions and does not restrict users to a single platform.
She outlined four approved payment options currently available at airport toll gates: annual e-tags for frequent users, VIP stickers for approved users, personal bank ATM cards — including contactless and NFC-enabled cards — and FAAN-issued cashless cards obtainable within airport premises and through partner banks.
She encouraged Nigerians to confirm with their banks whether their ATM cards are contactless-enabled, noting that such cards significantly reduce transaction time compared to traditional PIN-based payments. She also confirmed that domestic cards, including Verve, are fully compatible with the system.
“The fact that FAAN is introducing cashless cards does not mean that it is the only mode of payment. It simply means we are no longer collecting cash,” she clarified.
Kuku added that improved revenue collection would have a direct impact on service delivery, infrastructure maintenance, and long-term airport modernisation projects nationwide.
Reiterating her appeal to airport users, she urged Nigerians to come prepared before arriving at airports.
“This process will run its course. We plead with Nigerians to be proactive — obtain the necessary payment tools before arriving at the airport and support this initiative. The ultimate goal is better service delivery, improved infrastructure, and a more transparent system that works for everyone,” she said.
She expressed confidence that, once fully integrated, the cashless system would not only block revenue leakages but also align Nigeria’s airport operations with global best practices in digital revenue management and accountability.
