LAGOS — The Federal Airports Authority of Nigeria (FAAN) has confirmed that there is “no going back” on its transition to a 100% cashless environment across all Nigerian airports. Following a high-level meeting with the National Union of Air Transport Employees (NUATE), FAAN Managing Director and CEO, Mrs. Olubunmi Kuku, reiterated that the directive will take full effect by the February 28, 2024 deadline.
The move follows a Treasury Circular issued in November 2025 by the Office of the Accountant General of the Federation, mandating all federal agencies to cease physical cash collections to enhance transparency and curb revenue leakages.
Securing the Revenue Gateways
Addressing recent concerns regarding third-party payment partners, Mrs. Kuku clarified the mechanics of the new system. Specifically, she addressed the role of Paystack, noting that the platform acts solely as a technological gateway.
The Payment Integrity Framework:
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Direct Remittance: Funds processed via Point of Sale (POS) terminals move directly into designated Federal Government accounts.
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Zero Holding: Third-party partners do not hold government funds at any point in the transaction chain.
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Traceability: The digital model provides an audited trail for every kobo, significantly reducing “human-led” leakages that often plague cash-based systems.
Modernizing the “Orange Economy”
The transition is being framed as a critical milestone in the modernization of Nigeria’s aviation value chain and the broader “Orange Economy” (creative and service sectors). FAAN is betting on digital infrastructure to boost its bottom line while improving the passenger experience through faster service delivery at airport touchpoints.
The union (NUATE), which had initially expressed concerns, has now signaled its satisfaction with the implementation strategy, following assurances that the transition will be seamless for both staff and the public.
What Passengers and Vendors Need to Know
As the month-end deadline approaches, the following changes will become standard at all airport facilities:
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Digital-Only Payments: All fees, from parking to terminal services, must be paid via card, bank transfer, or mobile payment platforms.
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Increased Accountability: Passengers can expect digital receipts for all transactions, ensuring greater transparency.
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Efficiency Gains: The removal of cash handling is expected to reduce queues at payment points.
