FAAN Hikes Tariffs, Bans Cash Payments at All Nigerian Airports
In a sweeping policy shift aimed at enhancing transparency and revenue collection, the Federal Airports Authority of Nigeria (FAAN) has announced the implementation of higher tariffs for service providers and the immediate nationwide ban on cash payments across all federal airports.
The new measures, which affect toll gate access, airport services, and commercial operations within airport premises, are part of FAAN’s broader digital transformation and financial accountability initiative.
FAAN disclosed that tariffs for all service providers operating at Nigeria’s 24 federal airports will be reviewed upward.
The decision comes in the wake of significant revenue losses previously caused by indiscriminate waivers and cash handling inefficiencies.
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For example, the removal of toll gate exemptions at Murtala Muhammed International Airport in Lagos alone has reportedly generated up to ₦160 million monthly since implementation began in 2024.
With the new directive, all motorists accessing airport facilities must pay revised tolls either through electronic toll gates or by using vehicle e-tags, which are now mandatory for regular users. FAAN noted that e-tags would remain the preferred method of access for ease, speed, and full compliance with the cashless directive.
In a move to eradicate cash-based transactions within all federal airport environments, FAAN has banned cash payments at all payment points, including those operated by third-party service providers. All payments for services such as parking, tolls, baggage handling, and concessions must now be completed electronically—either through point-of-sale (POS) terminals, bank transfers, or Remita gateways.
This digital-only policy aligns with the broader objectives of the Presidential Enabling Business Environment Council (PEBEC) and supports the Central Bank of Nigeria’s cashless economy drive. Airport managers have been instructed to ensure complete enforcement and provide adequate signage and payment infrastructure at every location.
FAAN Managing Director, Mrs. Olubunmi Kuku, emphasized that these changes are designed to eliminate corruption, close revenue leakages, and improve service delivery across all Nigerian airports. She stated that any official or concessionaire caught requesting or receiving cash would face immediate sanctions, while touts and unauthorized agents will be prosecuted.
“Cashless operations are not only a safeguard against corruption but also a necessary step toward modernizing our airport systems,” Kuku said. “We are determined to build a transparent, accountable, and investor-friendly environment.”
To support this transition, FAAN is collaborating with security agencies to enforce compliance and ensure the safety of airport users. Additionally, the authority has launched a nationwide awareness campaign to educate travelers, drivers, and stakeholders on how to comply with the new rules.
While many business stakeholders have praised the digital shift as long overdue, some airport users—especially those in rural or underserved areas—express concern about accessibility and system readiness. FAAN, however, insists that the policy is irreversible and has urged all users to obtain electronic payment means before traveling.
Service providers are also expected to adjust to the new tariffs and ensure their operations are fully POS-compliant. Airport access points, payment booths, and concession areas are already being retrofitted to accommodate the transition.
FAAN’s directive to increase tariffs and ban cash transactions nationwide represents a bold step toward financial reform and operational efficiency in Nigeria’s aviation sector. With improved revenue assurance and a stronger anti-corruption posture, the authority hopes to set new standards for airport management and service delivery in West Africa.
As enforcement begins, all stakeholders—travelers, businesses, and airport staff—are advised to embrace digital tools and prepare for a fully cashless airport experience across the country.
