FAAN: we are determined to block revenue leakages
The Federal Airports Authority of Nigeria (FAAN) said it was determined to eliminate revenue leakages in the nation’s airports through full enforcement of electronic payment and collection systems as a
- Gridlock persists on Lagos Airport Road over cashless policy
- Cardholders hit 100,000 nationwide
The Federal Airports Authority of Nigeria (FAAN) said it was determined to eliminate revenue leakages in the nation’s airports through full enforcement of electronic payment and collection systems as a significant shift in its financial and operational framework.
The Managing Director of FAAN, Olubunmi Oluwaseun Kuku told reporters after appearing before the House of Representatives Committee that the agency has deployed comprehensive mechanisms to ensure that all revenues generated at the airport particularly at toll gates and other collection points are efficiently captured, transparently processed, and fully remitted to the Federal Government.
She said the move is in line with the Federal Government’s broader fiscal reform agenda aimed at plugging financial leakages, enhancing transparency, and improving internally generated revenue across Ministries, Departments, and Agencies (MDAs).
She noted that although the enforcement of the cashless regime has caused temporary inconvenience for some airport users, the reform is both strategic and long overdue.
“This initiative is about accountability and sustainability. We are ensuring that every kobo due to the Federal Government is collected without leakages, while also improving operational efficiency,” she said.
According to her, the transition did not begin abruptly, adding that preparatory steps, including public sensitization campaigns, advertisements, and stakeholder engagements, commenced in mid-2025 to adequately prepare airport users for the shift from cash transactions to electronic payments.
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“The enforcement itself only commenced on Sunday,” she explained, adding that the renewed momentum followed directives to strengthen collection mechanisms and eliminate systemic leakages.
While acknowledging the traffic congestion witnessed at some airport toll gates in the early days of implementation, Kuku described the situation as a temporary adjustment phase.
She appealed to Nigerians for patience and cooperation, assuring that the system would stabilize as more users adopt the various electronic payment channels available.
“We understand the initial discomfort, but this is a transition that will ultimately benefit everyone,” she said.
She dismissed misconceptions that FAAN’s newly introduced cashless cards are the sole payment option. She stressed that the policy does not restrict users to a single platform but simply eliminates physical cash transactions.
Meanwhile, for the third day running, passengers, motorists and other users of the Murtala Muhammed International Airport (MMIA), road have been experiencing hardship on account of perennial gridlock associated with traffic snarl at the Access Plaza Tollgate.
The development comes just as the Federal Airports Authority of Nigeria (FAAN), disclosed that over 100,000 motorists / passengers / airport users have so far registered for the cards nationwide.
A source within FAAN said besides the cards, other ways of payment include :” FAAN Go Cashless Card, use of ATMs, eTags.
The traffic gridlock was occasioned by the implementation of cashless policy by the Federal Airports Authority of Nigeria (FAAN), which took effect March 1, 2026.
Following the commencement of the new policy , official of FAAN , stopped the collection of cash at the Access Tollgate , requiring users to either make payment with the FAAN payment card, ATM cards and other digital devices for payment.
As of yesterday, for hours running vehicles were at standstill as the access gate machines were malfunctioning while most of the motorists were not armed with the app for access gate despite the awareness created by the Federal Airports Authority of Nigeria
FAAN had over a month ago warned airport users that the all revenue points across airports in the country will go cashless by March 1st, 2026.
At the access gate in Lagos airport, queues stretched back several metres, with some travellers reportedly abandoning their cars to catch flights on the back of Okadas (commercial motorcycles) that charged a 200% premium.
While FAAN insists that cards are available, on-the-spot registration at the gates has created a massive bottleneck. Many travellers arrived unaware that their standard bank cards might struggle with the specific NFC terminals.
Experts said frequent flyers might find the system easy, but occasional travellers from rural areas or older citizens often find the mandatory registration process daunting.
Reports of failed electronic transfers and slow POS confirmations turned the 30-second tap into a 20-minute ordeal for many motorists.
In the days leading up to the launch, viral scam alerts circulated on WhatsApp, c claiming the Go-Cashless SMS notifications were phishing links designed to drain bank accounts—a claim FAAN had to frantically debunk.
FAAN has appealed for patience and deployed task forces in branded shirts to assist with gate-side registrations.
The authority maintained that the current “small inconvenience” is a necessary price for a world-class experience tomorrow.
The Minister of Aviation and Aerospace Development, Festus Keyamo, Sunday apologized to Nigerians for the temporary gridlocks at FAAN airport gates nationwide following the full implementation of the cashless toll policy.
He said, “I am using this occasion to apologise to Nigerians for all the gridlocks they faced today across the country at the gates of the Federal Airports Authority of Nigeria. Today, we went cashless in line with the policy of this government to eliminate the collection of cash at toll gates.”
He explained that the move aligns with the Federal Government’s broader reforms to enhance transparency and revenue optimisation, noting that no previous administration had fully implemented the cashless gate system.
“The President gave us an ultimatum, and today we went cashless at all the gates. We have been announcing this before now — please get your FAAN cards so that when you get to the gate, you just tap and the barrier opens. If you go to any FAAN gate and you want to pay cash, I am sorry, you’re going to experience embarrassment and gridlock because nobody will allow you to pass through.”
While acknowledging the initial challenges, the Minister urged Nigerians to embrace the reform in the interest of improved service delivery and enhanced revenue generation for national development.
The Managing Director of FAAN, Mrs Olubunmi Kuku, had stated that once stabilised, contactless payments are theoretically faster than counting change, reducing the time spent at access gates from minutes to seconds.
She disclosed that as the system stabilises, the success of “Operation Go Cashless” won’t be measured by how much money is collected, but by how quickly a traveller can move from the toll gate to the boarding gate without reaching for their wallet.
Some stakeholders in the aviation sector have argued that the cashless policy was over due as most of the revenue generated ended up in private pockets.
It is expected that as time goes on, the system will improve while airport users should get their cards ready through registration with FAAN for easy access.
By routing every kobo through the Treasury Single Account (TSA), the leakages, a polite term for petty corruption and unrecorded collections, are effectively plugged.
FAAN said it will no longer be accepted at any of the pay points, such as executive lounges, parking lots, and entrance gates, as of Sunday, March 1.
The FAAN released a statement on Friday.
FAAN’s “Go Cashless” campaign, the statement added promised to make all airport transactions quicker, safer, and entirely digital, includes this step.
The statement hinted that at airports under FAAN authority, all travellers and guests must pay digitally.
This covers costs for executive and VIP lounge services, parking in parking lots, and admission through access gates. FAAN noted that the program is in line with the Central Bank of Nigeria’s (CBN) instruction to promote cashless transactions in all public services.
“In line with the directive of the Central Bank of Nigeria, effective March 1st, 2026, cash will no longer be accepted at any FAAN pay point. That means at all our international and local airports—from access gates to car parks, and executive lounge entries—every transaction must be digital,” the statement read in part.
Passengers are advised to collect their cards at access gates and lounges to take advantage of the “Tap and Go” system, which allows them to complete transactions quickly and avoid queues.
The technology speeds up passenger flow and reduces leakage chances by doing away with cash. In these busy locations, it is anticipated that the cashless system will greatly enhance service quality.
She said four primary payment options are available at airport toll gates, including annual E-Tags, designed for frequent users to enable seamless drive-through access without stopping for manual processing, VIP Stickers, which provide expedited passage for approved users.
Personal bank ATM cards, including contactless/NFC-enabled cards that allow tap-and-go transactions and FAAN-issued Cashless Cards, obtainable within airport premises and through designated partner banks.
She encouraged Nigerians to check with their banks for contactless or NFC-enabled ATM cards, noting that these significantly reduce transaction time compared to traditional PIN-based cards, while also confirming that widely used domestic payment cards, including Verve cards, 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 said enhanced revenue collection would directly impact service delivery, infrastructure maintenance, and long-term airport modernization projects across the country.
Reiterating her appeal to the public, she 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 boss 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.
