Tinubu Suspends Airport Cashless Policy

* Keyamo: Step taken due to gridlock, missed flights at Lagos and Abuja airports 

* Govt to involve private sector in redesigning the electronic payment system 

Deji Elumoye in Abuja

President Bola Tinubu on Wednesday directed the immediate suspension of the recently introduced cashless payment system at Nigerian airports following concerns that its implementation has caused severe gridlock and hardship for air travellers nationwide.

Minister of Aviation and Aerospace Development, Festus Keyamo, who made this disclosure while briefing newsmen at the State House, Abuja, after the Federal Executive Council (FEC) meeting presided over by the President Tinubu, said the directive followed reports that the newly introduced system at toll gates and other payment points around airports had led to long queues, causing many passengers to miss their flights.

According to him, the cashless system was initially introduced by the Federal Airports Authority of Nigeria (FAAN) to eliminate corruption and improve revenue collection for the Federal Government, replacing a decades-old practice of cash payments.

“The first one has to do with the present cashless system we introduced at our toll gates across the country in order to eliminate corruption and optimise revenue for the Federal Government.

“You recall that this practice had gone on for more than 50 years where operators of the toll gates collect cash from motorists at points of collection across the country, mostly at toll gates and other points like parking lots,” he said.

Keyamo, however, noted that less than a week after the introduction of the cashless system, it began to create serious congestion around airport access roads, particularly in Lagos and Abuja.

The president, he said, became concerned that the situation was causing undue hardship for travellers and directed that the system be immediately suspended pending further improvements.

His words: “Mr President was very concerned about the welfare of Nigerians and the fact that most Nigerians were missing their flights, missing their flights.

“So Mr President, out of empathy, directed today that we should suspend the present system because it creates a lot of gridlock and Nigerians are suffering as a result of it.”

He said the president instructed the ministry and FAAN to revert temporarily to the previous payment arrangement while officials work on a more efficient electronic solution.

The minister explained that the government would implement a temporary hybrid arrangement allowing both cash payments and the use of prepaid FAAN cards already purchased by some motorists.

“For those who have bought FAAN cards before, we can do a hybrid system whereby we can collect cash temporarily and, of course, use the cards that they have collected temporarily for now,” he said.

Keyamo added that the Federal Government would engage private sector partners to develop a more efficient electronic payment platform that would eliminate cash transactions without causing delays for motorists.

He said the president also directed that the review process should not take long, emphasising the need to restore efficiency at airport entry points as quickly as possible.

Keyamo noted that Tinubu remains committed to a fully electronic system for revenue collection at airports but insisted that the new arrangement must not create the kind of congestion currently experienced.

“To the extent that it will not create the gridlock that we are having right now,” he said.

He further revealed that the government may allow private operators to manage the electronic payment system and collect revenues on behalf of the Federal Government, even if it requires paying commissions.

“If we have to pay commission, we have to pay commission, but we will bring in private sector participants to help us devise a much more efficient payment system,” the minister said.

Keyamo stressed that the suspension of the policy should not be interpreted as a return to permanent cash transactions but rather a temporary measure aimed at easing the difficulties faced by travellers.

He reiterated that the president’s decision was driven by empathy and the need to reduce the suffering experienced by airport users following the introduction of the system.

“The major reason why Mr President took this decision is to eliminate the present gridlock we are experiencing, especially both at the Lagos and the Abuja toll gates leading to the airport,” he said.

Keyamo added that the ministry would consult further with FAAN and provide additional briefings as work progresses on developing a more efficient and seamless payment solution for airport users.