FAAN Intensifies Revenue Leakage Crackdown with Full Cashless Policy Enforcement

FAAN deploys comprehensive electronic payment systems nationwide to plug revenue leakages and enhance transparency.

NGN Market

Written by NGN Market

·5 min read
FAAN Intensifies Revenue Leakage Crackdown with Full Cashless Policy Enforcement

Key Highlights

  • The cashless policy implemented by FAAN commenced on Sunday, March 1, 2026.
  • Over 100,000 motorists/passengers/airport users have registered for FAAN cards nationwide.
  • The Minister of Aviation and Aerospace Development, Festus Keyamo, apologized for temporary gridlocks experienced nationwide.
  • FAAN is deploying task forces to assist with gate-side registrations.
  • The initiative aims to improve operational efficiency and ensure all revenues are fully remitted to the Federal Government.

The Federal Airports Authority of Nigeria (FAAN) has declared its strong determination to eliminate revenue leakages across the nation's airports through the full enforcement of electronic payment and collection systems. This strategic shift in its financial and operational framework, which commenced on Sunday, March 1, 2026, aims to capture, process, and remit all airport-generated revenues transparently to the Federal Government.

Managing Director of FAAN, Olubunmi Oluwaseun Kuku, speaking to reporters after an appearance before the House of Representatives Committee, stated that comprehensive mechanisms have been deployed to ensure efficient revenue collection. This move aligns with the Federal Government's broader fiscal reform agenda focused on plugging financial leakages, enhancing transparency, and boosting internally generated revenue across Ministries, Departments, and Agencies (MDAs).

While acknowledging that the enforcement of the cashless regime has caused temporary inconvenience for some airport users, Kuku emphasized that 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.

Preparatory steps, including public sensitization campaigns, advertisements, and stakeholder engagements, began in mid-2025 to prepare airport users for the transition from cash to electronic payments. The enforcement itself began on March 1, 2026, following directives to strengthen collection mechanisms and eliminate systemic leakages.

The implementation has led to temporary traffic congestion at some airport toll gates, particularly at the Murtala Muhammed International Airport (MMIA) Access Plaza Tollgate. As of March 3, 2026, vehicles were reportedly at a standstill for hours due to malfunctioning access gate machines and a lack of awareness or preparedness among some motorists regarding the new payment methods. FAAN had previously warned airport users over a month prior that all revenue points would go cashless by March 1, 2026.

Passengers and motorists have experienced significant hardship, with some travelers reportedly abandoning their cars to catch flights via commercial motorcycles. While FAAN insists cards are available, on-the-spot registration at gates has created bottlenecks, and many travelers were unaware that their standard bank cards might not be compatible with the specific NFC terminals. Experts noted that while frequent flyers might find the system easy, occasional travelers, particularly from rural areas or older citizens, often find the mandatory registration process daunting.

Reports of failed electronic transfers and slow POS confirmations have also contributed to delays. In the days leading up to the launch, FAAN had to debunk scam alerts circulating on WhatsApp that falsely claimed Go-Cashless SMS notifications were phishing links. FAAN has appealed for patience and deployed task forces in branded shirts to assist with gate-side registrations, maintaining that the current "small inconvenience" is a necessary price for improved service delivery.

The Minister of Aviation and Aerospace Development, Festus Keyamo, has apologized to Nigerians for the temporary gridlocks. He stated, "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 reforms to enhance transparency and revenue optimization, noting that no previous administration had fully implemented the cashless gate system. He added that the President gave them an ultimatum to go cashless at all gates.

Kuku reiterated that once stabilized, contactless payments are theoretically faster than counting change, reducing transaction times. She mentioned that over 100,000 motorists/passengers/airport users have registered for cards nationwide. The success of "Operation Go Cashless" will be measured by how quickly a traveler can move from the toll gate to the boarding gate.

Some stakeholders in the aviation sector view the cashless policy as long overdue, citing that much of the revenue generated previously ended up in private pockets. By routing revenue through the Treasury Single Account (TSA), leakages are expected to be effectively plugged.

Cash will no longer be accepted at any FAAN pay points, including executive lounges, parking lots, and entrance gates, as of March 1, 2026. The "Go Cashless" campaign promises quicker, safer, and entirely digital transactions. This applies to executive and VIP lounge services, parking, and admission through access gates, in line with the Central Bank of Nigeria's directive to promote cashless transactions.

Passengers are advised to collect their cards at access gates and lounges for the "Tap and Go" system. FAAN offers four primary payment options: annual E-Tags for frequent users, VIP Stickers, personal bank ATM cards (including contactless/NFC-enabled cards), and FAAN-issued Cashless Cards. Kuku clarified that FAAN-issued cards are not the sole payment option, but the elimination of physical cash transactions is absolute. She encouraged users to check with their banks for contactless or NFC-enabled ATM cards, confirming that widely used domestic payment cards, including Verve cards, are compatible.

Kuku expressed confidence that the cashless system will not only block revenue leakages but also align Nigeria's airport operations with global best practices in digital revenue management and accountability. Enhanced revenue collection is expected to directly impact service delivery, infrastructure maintenance, and long-term airport modernization projects.

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