|By Adejumo Adekunle-
-FAAN Moves to Modernise Revenue System, Bans Cash Transactions
–Tariff Hike Looms as Authority Shifts Toward Automation and Contactless Payments
The Federal Airports Authority of Nigeria (FAAN) has announced a nationwide ban on cash transactions at all airports and hinted at a forthcoming tariff review, aimed at boosting revenue and aligning with global best practices.
FAAN’s Director of Commercial and Business Development, Adebola Agunbiade, made the disclosure on Monday at an aviation stakeholders’ event held in Lagos. According to her, the move is part of the authority’s broader efforts to modernise operations and improve financial sustainability.
“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,” Agunbiade stated.
She said FAAN would issue early notices to service providers and stakeholders before implementing the new tariff structure, assuring that recent reviews would not be affected in the short term.
“We will be putting out notices on it. Rest assured, we are not reviewing tariffs that were just recently adjusted. But we will inform you ahead so that you can plan your business accordingly.”
Agunbiade also disclosed that 92 percent of FAAN’s current revenue is derived from aeronautical sources, such as landing, parking, and passenger service charges, while only 8 percent comes from non-aeronautical ventures like concessions, retail, and advertisement — a significant deviation from international benchmarks, where non-aeronautical revenue typically accounts for over 40 percent.
In a bid to restructure its earnings and eliminate revenue leakages, FAAN has adopted a cashless and contactless payment system across all its facilities.
Reinforcing this policy, FAAN’s Managing Director and CEO, Olubunmi Kuku, urged service providers to embrace automation, stressing that it would enhance accountability and ease of payment tracking.
“Automation makes it easier for you to track your payment. We’re going cashless and contactless in payments,” Kuku said, adding that the volume of payment-related enquiries has overwhelmed the agency.
The twin policy of banning cash transactions and adjusting tariffs marks a strategic shift in FAAN’s operations, reflecting global trends in aviation management and digital transformation.
