- The Federal Airports Authority of Nigeria (FAAN) has officially banned cash transactions for all airport services nationwide, with the directive taking effect from February 28
- The transition aligns with global best practices in aviation management and complies with Federal Government financial reform directives
- The initiative is aimed at enhancing transparency, accountability, operational efficiency, and revenue assurance within Nigeria’s airport system
The Federal Airports Authority of Nigeria (FAAN) has announced a ban on cash transactions for all services at airports nationwide, with the directive set to take effect from February 28.
The development was disclosed in a statement issued on Thursday, February 19, in Lagos by FAAN’s Director of Public Relations and Consumer Protection, Mr. Henry Agbebire.
According to the statement, the clarification became necessary after executives of various aviation unions visited FAAN management on Wednesday, February 18, to seek further explanations regarding the planned cessation of cash transactions at airports.
The unions involved in the engagement included the National Union of Air Transport Employees (NUATE), the Air Transport Services Senior Staff Association of Nigeria (ATSSSAN), and the Association of Nigeria Aviation Professionals (ANAP).
Agbebire noted that the meeting created room for extensive discussions, underscoring FAAN’s open-door policy and dedication to inclusive consultations with stakeholders.
FAAN’s Managing Director, Mrs. Olubunmi Kuku, reaffirmed the authority’s commitment to implementing a fully cashless system across all airport payment points in the country.
Kuku stressed that the shift aligns with international best practices in aviation management and complies with directives from the Federal Government. She explained that the move is designed to improve transparency, accountability, and operational efficiency across airport operations.
She cited a Treasury Circular dated November 24, 2025, issued by the Office of the Accountant-General of the Federation and signed by the Accountant General, Shamseldeen Ogunjimi, which mandates the discontinuation of cash transactions in government dealings.
The FAAN boss further explained that the directive followed the approval of the Federal Executive Council for Ministries, Departments, and Agencies (MDAs) to halt physical cash collections and payments as part of wider public finance reforms.
“There is no going back on this decision. The cashless initiative aligns FAAN with national financial management reforms.
“While positioning Nigeria’s airports for greater operational integrity, improved service delivery, and stronger revenue assurance,” she said.
Kuku added that the transition is also part of FAAN’s broader strategy to strengthen stakeholder engagement, enhance transparency, and build trust among partners, unions, concessionaires, and service providers by involving them in major operational decisions.
She maintained that by engaging NUATE and other critical stakeholders ahead of implementation, FAAN continues to demonstrate that meaningful institutional reforms must be pursued alongside active collaboration.
Highlighting the advantages of the new system, Kuku said a cashless framework would help reduce revenue leakages, improve transaction traceability, speed up service delivery, and boost public confidence in airport operations.
Addressing concerns about the use of Paystack as a third-party platform, she clarified that Paystack functions solely as a payment gateway for processing transactions.
She assured stakeholders that no funds are deposited into any Paystack account, explaining that all payments made through Point of Sale (POS) terminals go directly into designated Federal Government accounts.
At the end of the meeting, representatives of the unions expressed satisfaction with the explanations provided and agreed that the implementation framework is both practical and workable.