FAAN Moves to Seal Revenue Leakages with Mandatory Cashless System at Airports

Juliet Akoje in Abuja

The Federal Airports Authority of Nigeria (FAAN) has pledged to curb revenue losses across airports nationwide by fully enforcing electronic payment and collection platforms, signaling a major overhaul of its financial and operational processes.

FAAN’s Managing Director and Chief Executive Officer, Olubunmi Oluwaseun Kuku, made this known while speaking to journalists after appearing before the House of Representatives Committee on Finance yesterday.

The Committee, led by Chairman James Abiodun Faleke, is conducting a Revenue Monitoring Exercise for the 2023–2025 fiscal period, aimed at reinforcing revenue transparency and accountability among government institutions.

Kuku stated that FAAN has put in place extensive systems to ensure that all income generated at airports particularly at toll gates and other payment points is properly recorded, transparently processed, and entirely remitted to the federal government.

She explained the initiative aligns with the federal government’s wider fiscal reform programme focused on blocking financial leakages, boosting transparency, and strengthening internally generated revenue across Ministries, Departments, and Agencies (MDAs).

While admitting that the new cashless enforcement has created short-term challenges for some airport users, Kuku described the reform as both deliberate and 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.”

According to her, the transition was not sudden. Preparations began in mid-2025 and included awareness campaigns, advertisements, and consultations with stakeholders to ready airport users for the shift from cash payments to electronic transactions.

“The enforcement itself only commenced on Sunday,” she added, noting that the renewed drive followed fresh directives to tighten revenue collection systems and eliminate systemic loopholes.

Although traffic build-up was observed at some airport toll gates during the early phase of implementation, Kuku characterized it as a temporary adjustment period.

She urged Nigerians to remain patient and cooperative, assuring that operations would normalize as more users adopt the available electronic payment channels.

“We understand the initial discomfort, but this is a transition that will ultimately benefit everyone,” she stated.

Kuku also dismissed claims suggesting that FAAN’s newly introduced cashless cards are the only approved means of payment.

She clarified that the policy simply eliminates cash transactions and does not confine users to a single payment option.

Currently, four major payment methods are accepted at airport toll gates:

Annual E-Tags, created for frequent users to allow uninterrupted drive-through access without stopping for manual processing, VIP Stickers, granting expedited entry for approved individuals, Personal bank ATM cards, including contactless or NFC-enabled cards that support tap-and-go payments, FAAN-issued Cashless Cards, available within airport premises and through selected partner banks.

She specifically encouraged Nigerians to inquire from their banks about obtaining contactless or NFC-enabled ATM cards, explaining that these significantly cut transaction time compared to conventional PIN-based cards.

Kuku further confirmed that widely used domestic payment options, including Verve cards, are compatible with the new 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.

She emphasized that improved revenue capture would translate into enhanced service delivery, better infrastructure maintenance, and long-term modernization of airport facilities nationwide.

Reaffirming her appeal to the public, Kuku said: “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.”

The FAAN chief expressed optimism that once fully implemented, the cashless framework would not only eliminate revenue leakages but also bring Nigeria’s airport operations in line with international best practices in digital revenue management and accountability.