- President Bola Tinubu has suspended the newly introduced cashless payment system at Nigerian airports due to widespread complaints of gridlock and travel disruptions
- The policy, introduced by the Federal Airports Authority of Nigeria, aimed to curb corruption and improve revenue collection
- The President emphasised that the suspension is temporary and aimed at easing hardships faced by travellers, not abandoning electronic payments
President Bola Ahmed Tinubu has ordered the suspension of the newly introduced cashless payment system at Nigerian airports following widespread complaints about severe traffic congestion and difficulties faced by travellers.
The directive came after reports that the policy had caused heavy gridlock at airport entry points, particularly in Lagos and Abuja, leading to missed flights and long delays for passengers.
The Minister of Aviation and Aerospace Development, Festus Keyamo, disclosed the development while briefing journalists after the Federal Executive Council (FEC) meeting in Abuja on Wednesday, March 4.
Keyamo explained that the cashless system was initially introduced by the Federal Airports Authority of Nigeria (FAAN) as part of efforts to curb corruption and improve revenue collection for the Federal Government, replacing a decades-long practice of collecting cash payments at airport toll points.
He said: “The first one has to do with the present cashless system we introduced at our toll gates across the country to eliminate corruption and optimise revenue for the Federal Government.
“You recall that this practice had gone on for more than 50 years, where operators of the toll gates collect cash from motorists at points of collection across the country, mostly at toll gates and other points like parking lots.”
However, the minister said that shortly after the system was introduced, authorities began to observe serious traffic congestion around airport access roads.
According to him, the President became concerned about the hardship it was causing travellers and directed that the system be suspended until improvements are made.
“Mr President was very concerned about the welfare of Nigerians and the fact that most Nigerians were losing their flights, missing their flights.
“So Mr President, out of empathy, directed today that we should suspend the present system because it creates a lot of gridlock and Nigerians are suffering as a result of it”, Keyamo said.
He noted that the President directed the ministry and FAAN to temporarily revert to the previous payment system while officials work on a more efficient electronic payment platform.
Keyamo explained that a temporary hybrid system would be introduced to allow both cash payments and the continued use of FAAN prepaid cards already purchased by motorists.
“For those who have bought FAAN cards before, we can do a hybrid system whereby we can collect cash temporarily and, of course, use the cards that they have collected temporarily for now,” he said.
The minister added that the government would collaborate with private sector partners to design a more efficient electronic payment system capable of eliminating cash transactions without creating delays for motorists.
He said the President had instructed that the review process should be completed quickly in order to restore efficiency at airport entry points.
Keyamo stressed that although the government remains committed to a fully electronic payment system, it must not create the congestion currently being experienced.
“To the extent that it will not create the gridlock that we are having right now,” he said.
He further disclosed that the government might allow private operators to manage the electronic payment platform and collect revenues on behalf of the Federal Government, even if that arrangement requires paying commissions.
“If we have to pay commission, we have to pay commission, but we will bring in private sector participants to help us devise a much more efficient payment system,” he said.
The minister emphasised that suspending the policy does not mean a permanent return to cash payments but rather a temporary step to reduce the difficulties experienced by airport users.
He reiterated that the President’s decision was guided by concern for Nigerians affected by the policy’s implementation.
“The major reason why Mr President took this decision is to eliminate the present gridlock we are experiencing, especially at the Lagos and Abuja toll gates leading to the airport,” Keyamo said.
He added that the ministry would continue consultations with FAAN and provide further updates as work progresses toward implementing a seamless electronic payment system.
Meanwhile, Keyamo also revealed that the Federal Executive Council approved the re-scoping and continuation of the long-delayed second runway project at Nnamdi Azikiwe International Airport in Abuja.
According to the minister, the approval followed a memo presented to the council and endorsed by President Tinubu to revive the project, which had stalled for years due to several challenges, including fluctuations in foreign exchange that significantly altered the initial cost estimates.
He explained that the government approved the re-award of four key components of the project. These include the construction of the runway, taxiways and connecting links; perimeter fencing with security gates; internal roads within the airport; and crash roads for emergency services.
The approvals also covered the procurement and installation of essential technical infrastructure such as airfield lighting systems, navigational aids, communication equipment and meteorological facilities required for safe runway operations.
In addition, the council approved the development of dedicated power infrastructure for the project, including the construction of a power station and switchyard to ensure a stable electricity supply for the new runway facilities.