By Gloria Ikibah
The Federal Airports Authority of Nigeria (FAAN) has stepped up efforts to curb revenue leakages by enforcing a fully cashless payment system across airports nationwide, signalling a major overhaul of its financial operations.
Managing Director and Chief Executive Officer, Olubunmi Oluwaseun Kuku, outlined the development after appearing before the House of Representatives Committee on Finance on Tuesday. 
The committee, led by James Abiodun Faleke, is currently conducting a revenue monitoring review spanning the 2023 to 2025 fiscal period. The exercise is designed to tighten oversight and ensure government agencies properly account for funds collected.
Kuku explained that new systems have been introduced to capture every payment made within airport premises, particularly at toll gates and other revenue points. The intention is to ensure that income is recorded accurately, processed transparently and remitted in full to the Federal Government.
The authority’s renewed drive forms part of wider fiscal reforms aimed at strengthening accountability and boosting internally generated revenue across ministries, departments and agencies.
While acknowledging that the transition has created short-term inconvenience for some travellers and airport users, FAAN maintains that the shift to an entirely electronic framework is both necessary and overdue, positioning the agency for greater financial discipline and operational efficiency.
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.”
Kuku explained that the changeover was not introduced suddenly. The groundwork had been laid well in advance, with public awareness drives, advertisements, and consultations with key stakeholders beginning in mid-2025 to ensure airport users were fully prepared for the move from cash payments to electronic transactions.
“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 admitted the traffic congestion witnessed at some airport toll gates in the early days of implementation, but said the situation was a temporary adjustment phase.
Kuku therefore 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.
Kuku also moved to clear up misunderstandings surrounding FAAN’s newly introduced cashless cards. She emphasised that the new arrangement does not confine travellers to a single payment platform, but simply brings an end to the acceptance of physical cash.
At present, four main payment options are available at airport toll gates:
Annual E-Tags, created for frequent users to allow smooth drive-through access without the need to stop for manual processing.
VIP Stickers, which grant fast-tracked passage to approved users.
Personal bank ATM cards, including contactless or NFC-enabled cards that support quick tap-and-go payments.
FAAN-issued Cashless Cards, which can be obtained within airport premises and through designated partner banks.
She particularly urged Nigerians to confirm with their banks whether their ATM cards are contactless or NFC-enabled, explaining that such cards considerably shorten transaction times compared with traditional PIN-based alternativePIN-base.
She further confirmed that widely used domestic payment cards, including Verve cards, are fully 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 stressed that improved revenue collection would have a direct effect on service delivery, infrastructure upkeep, and long-term airport modernisation projects nationwide.
Restating 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 chief expressed confidence that, once fully embedded, the cashless system would not only curb revenue leakages but also bring Nigeria’s airport operations into line with global best practice in digital revenue management and accountability.
