How FAAN Blocks Revenue Leakages Through Full Cashless Enforcement At Airports

By Alkassim Bala Tsakuwa, Abuja

The Federal Airports Authority of Nigeria (FAAN) has vowed to eliminate revenue leakages across the nation’s airports through the full enforcement of electronic payment and collection systems, marking a significant shift in its financial and operational framework.

The Managing Director and Chief Executive Officer of FAAN, Olubunmi Oluwaseun Kuku, disclosed this while addressing journalists after her appearance before the House of Representatives Committee on Finance on Tuesday.

The Committee, chaired by James Abiodun Faleke, is currently undertaking a Revenue Monitoring Exercise covering the 2023–2025 fiscal years, with a focus on strengthening revenue accountability among government agencies.

She explained that FAAN has deployed comprehensive mechanisms to ensure that all revenues generated at airports particularly at toll gates and other collection points are efficiently captured, transparently processed, and fully remitted to the Federal Government.

She further stressed that, 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).

Kuku 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.

She said, “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 noted that the transition did not begin abruptly. 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.

She added, “The enforcement itself only commenced on Sunday,” she explained, adding that the renewed momentum followed directives to strengthen collection mechanisms and eliminate systemic leakages.

She however acknowledged 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 therefore appealed to Nigerians for patience and cooperation, assuring that the system would stabilize as more users adopt the various electronic payment channels available.

She said, “We understand the initial discomfort, but this is a transition that will ultimately benefit everyone”.

The FAAN MD also dispelled misconceptions that the agency’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 informed that there are four primary payment options available at airport toll gates which include; 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.
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.

She also informed that all domestic payment cards, including Verve cards, are compatible with the system.

She added, “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”.

Kuku stressed that enhanced revenue collection would directly impact service delivery, infrastructure maintenance, and long-term airport modernization projects across the country.

She further appealed, “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.