The Federal Airports Authority of Nigeria (FAAN) has reaffirmed its commitment to end cash transactions across all airport payment points nationwide, effective February 28, 2026.
Mrs. Olubunmi Kuku, the managing director/chief executive of FAAN, gave the confirmation during a consultative meeting with the National Union of Air Transport Employees (NUATE).
The move aligns with a Federal Government mandate to modernize public finance management and eliminate leakages in revenue collection.
Federal Mandate Drives Reform
The transition is rooted in a Treasury Circular dated November 24, 2025, issued by the Office of the Accountant General of the Federation.
The directive, signed by Shamseldeen Ogunjimi, mandated all Ministries, Departments, and Agencies (MDAs) to cease physical cash collections following approval from the Federal Executive Council.
Mrs. Kuku emphasized that the policy is a non-negotiable step toward global best practices in aviation management.
“There is no going back on this decision,” the MD/CE stated. “The cashless initiative aligns FAAN with national financial management reforms while positioning Nigeria’s airports for greater operational integrity and stronger revenue assurance.”
Addressing the Paystack Third-Party Concerns
During the engagement, the MD/CE addressed specific concerns regarding the use of Paystack as a payment partner.
She clarified that the platform functions strictly as a gateway and does not hold government funds.
Payment Flow: All transactions are processed via Point of Sale (POS) terminals.
Direct Remittance: Funds move directly from the terminal into designated Federal Government accounts, not into third-party accounts.
Transparency: The system is designed to provide full transaction traceability and reduce human-led revenue leakages.
Stakeholder Alignment
The meeting with NUATE served to douse tensions and provide clarity on the operational framework of the new system.
According to FAAN, the union expressed satisfaction with the practical implementation strategy and the measures put in place to ensure a seamless transition by the end-of-month deadline.
The authority maintains that the reform will lead to:
- Faster service delivery at airport touchpoints.
- Enhanced accountability and public confidence in airport operations.
- Inclusive consultation with partners, concessionaires, and service providers.
This move marks a significant milestone in the modernization of Nigeria’s aviation value chain. By eliminating cash, FAAN is betting on digital infrastructure to boost its bottom line and satisfy the federal government’s drive for transparency in the Orange Economy and transportation sectors.
As the February 28 deadline approaches, passengers and vendors at Nigerian airports must prepare for a fully digital payment environment, as FAAN pivots toward a more audited and efficient revenue model.
