FAAN begins automation of airports payment processes

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By Abubakar Yunusa

The Federal Airports Authority of Nigeria (FAAN) says it has commenced the automation of payment processes across its airports.

Speaking at a stakeholders’ forum with airport concessionaires in Lagos on Monday, Olubunmi Kuku, the managing director (MD) of FAAN, said the development started with the state’s Murtala Muhammed International Airport (MMIA).

Kuku said the new system will require the use of electronic cash registers (ECR) devices for payments, alongside the automation of toll gates and parking facilities to promote transparency and accountability.

“Today, the environment is slightly porous as people are just using physical ID cards and identification to pass through. We are actually going to be integrating that with BVN and NIN and, of course, biometrics on the domestic side,” she said.

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Kuku reaffirmed FAAN’s commitment to providing smart airports and efficient processes for business partners, while directing concessionaires to make timely payments and comply with contract terms.

The MD directed all non-essential tankers parked at the airport premises to vacate or face sanctions.

“We are going to be taking very drastic actions because it is obnoxious for an airport environment. I have realised that a lot of these tankers do not belong to those who operate in our environment,” she said.

Kuku said concessionaires would be re-categorised based on business type, retail mix, and offerings to correct fee discrepancies and ensure fair charges.

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On his part, Adebola Agunbiade, the FAAN’s director of commercial and business development, said 92 percent of the agency’s revenue comes from aeronautical sources, while only 8 percent is generated from non-aeronautical streams.

“This is not very good for us. International standard is 55 percent aeronautical revenue and 45 percent non-aeronautical, and we are very far from that,” Agunbiade said.

The director called for stakeholder support to help FAAN increase its non-aeronautical revenue.

He also announced a tariff review, citing losses caused by outdated charges.

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