The Federal Airports Authority of Nigeria (FAAN) has announced a major policy shift — banning all cash transactions at airports while also preparing to hike tariffs nationwide. The agency made this known during a recent industry event held in Lagos.
Adebola Agunbiade, FAAN’s Director of Commercial and Business Development, revealed that the move is part of an ambitious push to modernise the authority’s operations and improve revenue generation. According to Agunbiade, 92% of FAAN’s revenue currently comes from aeronautical sources, with only 8% from non-aeronautical avenues — a stark contrast to international standards where non-aeronautical income often exceeds 40%.
“We have to find the means to review our tariff in such a way that it’s not too much on you but it’s also helping us to pay our bills,” she explained, assuring stakeholders that they will be given adequate notice ahead of any tariff adjustments. “We have done it already; we will be putting out notices on it… we will ensure that we notify you early enough so that you, as businesses, can plan towards it.”
Agunbiade added that the pricing review will be mindful of recent adjustments to avoid imposing undue burdens on service providers.
FAAN’s Managing Director and CEO, Olubunmi Kuku, echoed the modernisation agenda, particularly on digitising payments. She confirmed that the authority is going completely cashless and contactless. “Automation makes it easier for you to track your payment,” she said, lamenting the high volume of calls and enquiries from service providers about payment renewals and applications.
This shift signals a new era for airport operations in Nigeria — one focused on transparency, efficiency, and long-term financial sustainability.
