We are determined to block revenue leakages, says FAAN
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
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 journalists 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,” 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 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.
Read Also: Alleged N80.2b fraud: Court to rule March 9 on admissibility of property documents in Yahaya Bello's trial
“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 misconceptionss 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.
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 emphasised that 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.
