FAAN Moves to Seal Revenue Leakages, Enforces Full Cashless Payments at Airports

By Christiana Ekpa

The Federal Airports Authority of Nigeria (FAAN) has intensified efforts to block revenue leakages across the country’s airports with the full enforcement of electronic payment systems at all collection points.

Managing Director and Chief Executive Officer of FAAN, Mrs. Olubunmi Oluwaseun Kuku, disclosed this on Tuesday after appearing before the House of Representatives Committee on Finance, which is currently conducting a Revenue Monitoring Exercise covering the 2023–2025 fiscal years.

The committee, chaired by Hon. James Abiodun Faleke, is reviewing revenue accountability among government agencies as part of broader efforts to strengthen fiscal discipline.

Kuku said FAAN has now deployed comprehensive electronic payment mechanisms to ensure that all revenues generated at airports—particularly at toll gates and other payment points—are properly captured, transparently processed, and fully remitted to the Federal Government.

According to her, the initiative aligns with the Federal Government’s ongoing fiscal reforms aimed at plugging financial leakages, boosting internally generated revenue, and improving transparency across Ministries, Departments and Agencies (MDAs).

“This initiative is about accountability and sustainability,” Kuku stated. “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 fully cashless regime did not happen abruptly. Public sensitization campaigns, advertisements, and stakeholder engagements began in mid-2025 to prepare airport users for the shift from cash transactions to electronic payments.

Although full enforcement commenced on Sunday, Kuku acknowledged that the new system initially caused traffic congestion at some airport toll gates. She, however, described this as a temporary adjustment phase.

“We understand the initial discomfort, but this is a transition that will ultimately benefit everyone,” she said, appealing to Nigerians for patience and cooperation as the system stabilizes.

Kuku also dismissed claims that FAAN’s newly introduced cashless cards are the only payment option. She clarified that the policy simply eliminates physical cash transactions and does not restrict users to a single platform.

Available payment options at airport toll gates include:
Annual E-Tags for frequent users, allowing seamless drive-through access without stopping.

VIP Stickers for approved users to enjoy expedited passage.
Personal bank ATM cards, including contactless or NFC-enabled cards for tap-and-go payments.
FAAN-issued Cashless Cards, obtainable within airport premises and through designated partner banks.

She encouraged Nigerians to request contactless or NFC-enabled ATM cards from their banks, noting that such cards significantly reduce transaction time compared to traditional PIN-based payments. She also confirmed that domestic payment cards, including Verve, are 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 emphasized that improved revenue collection would directly enhance service delivery, infrastructure maintenance, and long-term airport modernization projects nationwide.

Reaffirming FAAN’s commitment, she said 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.

“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 added.