BY OLAPEJU OLUBI
The clock is ticking on cash transactions at Nigeria’s airports.
The Managing Director/Chief Executive of the Federal Airports Authority of Nigeria (FAAN), Mrs. Olubunmi Kuku, has made it clear that the agency’s transition to a fully cashless payment regime will take effect nationwide on February 28, 2026, with no reversal in sight.
“There is no going back on this decision,” she declared during a high-level engagement with aviation unions in Lagos on Wednesday.
The meeting followed concerns raised by the (NUATE), the (ATSSSAN) and the (ANAP), who sought clarity on the discontinuation of physical cash payments across airport facilities.
Rather than a closed-door directive, the session turned into what officials described as a transparent, consultative dialogue, consistent with FAAN’s pledge to carry critical stakeholders along in its reform drive.
Mrs. Kuku framed the policy shift as both a compliance obligation and a structural reform.
She cited a Treasury Circular dated November 24, 2025, issued by the Office of the Accountant General of the Federation and signed by the Accountant General, Shamseldeen Ogunjimi, directing all Ministries, Departments and Agencies (MDAs) to cease cash collections and payments.
The directive, approved by the Federal Executive Council, forms part of broader public finance reforms aimed at tightening revenue controls and improving accountability.
For FAAN, she explained, the directive is not merely about obeying a circular, it is about modernising airport operations in line with global aviation standards.
By eliminating cash handling, the Authority expects to curb leakages, enhance revenue assurance, strengthen transaction traceability, and accelerate service delivery at payment points nationwide.
The reform, according to the MD, is designed to reinforce operational integrity while boosting public confidence in airport financial processes.
Addressing apprehensions about the use of Paystack as a payment gateway, Mrs. Kuku clarified misconceptions surrounding the platform’s role.
“Paystack merely serves as a payment gateway,” she explained, assuring union leaders that no government revenue flows into any private account. All payments processed through Point of Sale terminals, she stressed, go directly into designated Federal Government accounts.
The clarification appeared to ease tensions, as union representatives were comprehensively briefed on the technical processes, safeguards, and implementation framework guiding the transition.
Beyond the financial controls, the FAAN chief positioned the reform within a broader institutional philosophy — one that prioritises openness and engagement.
She noted that sustainable reforms in the aviation ecosystem require trust-building and consistent communication with workers, concessionaires, and service providers.
The unions, at the end of the meeting, expressed satisfaction with the explanations provided and acknowledged that the transition plan is both practical and achievable ahead of the February 28 deadline.
With the deadline fast approaching, FAAN’s message is unmistakable: Nigeria’s airports are moving decisively into a cashless era, a shift the Authority believes will redefine efficiency, transparency, and revenue management across the aviation value chain.
Olapeju is a journalist and aviation reporter.
