FAAN Announces Nationwide Ban on Cash Transactions at Airports
The Federal Airports Authority of Nigeria (FAAN) has issued a directive to immediately cease all cash transactions across its operations nationwide, as part of the Federal Government's broader cashless policy initiative. This move aims to enhance transparency and efficiency in revenue collection at airports.
Implementation Deadline and Government Approval
In an internal memo signed by FAAN's Managing Director and Chief Executive Officer, Mrs Olubunmi Kuku, and obtained on Tuesday, the agency stated that all cash collections related to its official activities must stop by February 29, 2026. This directive follows approval from the Federal Executive Council (FEC) for Ministries, Departments, and Agencies (MDAs) to fully transition to a cashless system, aligning with public finance reforms.
The memo emphasized that the decision is in response to a circular from the Office of the Accountant-General of the Federation, dated November 24, which expressed concern over continued breaches of the cashless policy by some agencies. The circular, signed by the Accountant-General, Shamseldeen Ogunjimi, warned that collecting physical cash undermines government regulations and weakens the integrity of electronic collection and payment systems.
FAAN's Commitment to Compliance
Reaffirming FAAN's position, Mrs Kuku stated that the agency would strictly comply with the approved policy. She directed all directors to ensure full implementation across departments and airport formations. The memo explicitly stated, "Accordingly, a directive is hereby given that all cash collections or transactions in the conduct of FAAN's official businesses must stop with effect from 29 February 2026."
The circular further instructed that alternative approved payment channels must be fully adopted before the deadline. It added that any violation of the directive would attract sanctions, underscoring the seriousness of the policy shift.
Broader Implications for Revenue Management
With this move, FAAN joins other federal agencies in aligning their financial operations with the government's push for digital payments. Industry observers note that stricter enforcement of the cashless policy could help reduce revenue leakages and strengthen accountability in public finance. By eliminating cash transactions, the government aims to improve transparency and streamline revenue collection processes.
In related developments, FAAN has revised its proposed increase in cargo port charges at the Murtala Muhammed International Airport (MMIA) in Lagos. Initially planning to raise charges from N7 to N20 per kilogram, the agency reduced this to N15 per kilogram after facing resistance from cargo agents. They warned that higher charges could negatively impact the cargo business and have wider implications for trade and related sectors across Nigeria.
This policy change reflects a significant step towards modernizing Nigeria's airport operations and supporting the federal government's efforts to promote a cashless economy nationwide.
