FAAN Announces Nationwide Cashless Policy for All Nigerian Airports
The Federal Airports Authority of Nigeria (FAAN) has officially announced the implementation of a total cashless and contactless payment system across all airport payment points nationwide. This significant policy shift is set to take effect on March 1, 2026, marking a major step in the federal government's push for digital financial operations.
Key Details of the Cashless Policy Rollout
According to a public notice released by FAAN, airport users will be required to obtain a Go-Cashless transaction card from the agency's commercial offices and access gates to facilitate payments. The policy mandates that all cash transactions must cease by February 29, 2026, with the new system fully operational from the following day.
FAAN urged all airport users and members of the public to pick up their transaction cards promptly to ensure a smooth transition. The notice emphasized that the move aims to provide faster, safer, and more convenient transactions at airports across the country.
Background and Government Directives
This decision follows approval by the Federal Executive Council (FEC) for Ministries, Departments, and Agencies (MDAs) to fully transition to a cashless system as part of public finance reforms. In a circular dated November 24, the Office of the Accountant-General of the Federation directed MDAs to discontinue cash payments and collections, citing concerns over breaches that undermine government regulations and weaken e-collection systems.
The circular, signed by Accountant-General Shamseldeen Ogunjimi, stressed that all revenues due to the federal government must be processed electronically, with cash acceptance strictly prohibited.
FAAN's Commitment and Compliance Measures
Reaffirming FAAN's position, Managing Director and CEO Mrs. Olubunmi Kuku stated that the agency would comply strictly with the approved policy. She directed all directors to ensure full implementation across departments and airport formations, warning that violations would attract sanctions.
The circular instructed that alternative approved payment channels must be fully adopted before the deadline. With this move, FAAN joins other federal agencies in aligning financial operations with the government's broader push for digital payments and improved transparency in revenue management.
Potential Impacts and Industry Observations
Industry observers suggest that stricter enforcement of the cashless policy could help reduce revenue leakages and strengthen accountability in public finance. The transition is expected to enhance the integrity of federal e-collection and e-payment systems, supporting Nigeria's economic reforms.
This announcement comes after FAAN revised a proposed increase in cargo port charges at the Murtala Muhammed International Airport in Lagos, following resistance from cargo agents who warned of negative impacts on trade. The agency reduced the planned rise from N20 to N15 per kilogram, highlighting ongoing adjustments in airport operations.
As Nigeria advances toward a more digital economy, FAAN's cashless policy represents a critical milestone in modernizing airport services and fostering financial inclusion nationwide.
