BY OLAPEJU OLUBI
The Federal Airports Authority of Nigeria (FAAN) has adopted a hybrid payment model that allows both electronic and cash transactions at toll gates in Abuja and Lagos.
Managing Director of FAAN, Olubunmi Kuku, made the revelation yesterday, clarifying that the directive from President Bola Ahmed Tinubu after the Federal Executive Council (FEC) meeting was not a suspension of the policy but an opportunity to refine the system before its full implementation.
Kuku described the President’s decision as a major boost for the aviation sector, noting that it demonstrated a willingness to adapt policy to the realities of Nigeria’s operating environment.
“You heard the Honourable Minister yesterday following the Federal Executive Council meeting where Mr. President asked us not necessarily to suspend the process but to ensure it is improved before it is fully rolled out.
“I consider this a major win for the Federal Airports Authority of Nigeria and the Ministry of Aviation”, she said.
The cashless toll system was introduced as part of efforts to modernise revenue collection at airport access gates and curb leakages associated with manual cash payments.
According to Kuku, preparations for the policy began months earlier, including an extensive public awareness campaign led by FAAN and supported by the National Orientation Agency.
“We started a lot of enlightenment even as far back as October last year,” she said, explaining that the agency had been working to prepare airport users for the transition.
Despite the awareness campaign, she noted that many passengers and commuters appeared unprepared for the strict March 1 enforcement deadline, leading to last-minute registration and operational challenges.
“From October to March 3, we enrolled over 100,000 users, but about 60,000 of them registered within the last three days,” she revealed.
The sudden surge in enrolment coincided with the enforcement of the policy and contributed to the heavy traffic congestion recorded at major airport toll gates, particularly in Lagos.
Kuku explained that while the payment technology itself performed efficiently, with a success rate of about 99 percent for electronic card transactions, the location of the toll gates and the nature of traffic around the airport corridors complicated the rollout.
“We realised that it created significant gridlock, especially in Lagos,” she said.
According to her, airport access roads serve not only air travellers but also thousands of workers and commuters passing through the surrounding areas.
“It’s not just airport passengers using that road. You also have workers in the airport environment and people commuting to other areas like Ikeja and neighbouring districts,” she explained.
The mixture of passengers, airport staff and regular city commuters created a unique traffic pattern that made the transition to a fully cashless toll system more difficult.
Kuku noted that although congestion initially affected both Lagos and Abuja airports, the situation in the Federal Capital Territory began to improve after a few days of enforcement.
“In Abuja, enforcement started on Sunday and by Wednesday we had already seen a reduction in the gridlock,” she said.
However, President Tinubu stepped in after observing the traffic challenges and potential impact on air travellers.
“Mr. President looked at the situation and said we don’t want passengers missing their flights or having a negative airport experience,” Kuku explained.
As a result, aviation authorities were instructed to revert temporarily to the previous payment arrangement while refining the technology and operational framework for the cashless system.
Under the revised approach, motorists will be able to use both electronic payment options and cash while more users are gradually onboarded.
“We had actually requested a hybrid approach from the beginning that allows both automated and cash payments,” Kuku noted.
The FAAN boss said the additional time granted by the President would allow the agency to strengthen public awareness, expand user registration and provide more payment options such as cards and electronic tags.
“We will ensure that more users are onboarded, provide additional channels for payment and work closely with private sector partners to improve the system,” she said.
She stressed that the core objective of the cashless toll initiative, to eliminate revenue leakages and improve transparency, remains unchanged.
“The purpose of the federal government circular was to block leakages in revenue collection,” Kuku said.
Even with the temporary return of cash payments, she assured that FAAN would introduce new safeguards to ensure that funds collected at airport toll gates are properly accounted for.
“We will put in place the necessary checks and balances to minimise leakages while the transition continues,” she said.
Kuku also acknowledged that the tight implementation timeline given to FAAN limited the opportunity for a comprehensive pilot phase before enforcement began.
“There was a bit of pressure based on the directive we received, which meant we probably didn’t have enough time for a full pilot stage,” she admitted.
However, she noted that the current adjustment effectively extends the testing period.
“For us now, the pilot stage continues. It allows us to test the system, understand the challenges and give people additional time to adapt,” she said.
While no new deadline has been set for the full cashless rollout, FAAN says the policy will return once operational challenges are resolved and more airport users are fully integrated into the system.
Until then, Kuku said the hybrid approach would ensure smoother access to airports while the agency works to perfect the technology and operational processes behind the initiative.
Olapeju is a journalist and aviation reporter.
