BY OLAPEJU OLUBI
The Managing Director of the Federal Airports Authority of Nigeria (FAAN), Olubunmi Kuku, has revealed that plans are afoot to deploy a hybrid payment system for airport toll gates after the initial rollout of a cashless policy triggered congestion around major airports.
Speaking during an interview on CNBC Africa, Kuku said the presidential intervention followed widespread complaints from passengers and commuters after the full enforcement of the cashless payment policy at airport toll points.
According to her, FAAN had introduced the policy as far back as July 2025 and intensified the initiative in October as part of broader efforts to eliminate cash transactions at airports.
“I’m sure you’re aware that we actually introduced a cashless policy last year. So it was actually about July last year and we intensified in October,” she said.
The FAAN boss explained that the policy was backed by federal government directives aimed at digitising payments and improving transparency within airport operations.
However, the enforcement of the policy on March 1 led to unexpected disruptions, particularly around Murtala Muhammed International Airport and the Nnamdi Azikiwe International Airport, Nigeria’s two busiest aviation gateways.
“In the implementation of the cashless policy, it made it quite hectic because a lot of commuters and even some passengers, despite awareness, did not believe we would actually start enforcement on March 1,” Kuku said.
She admitted that the development created severe traffic bottlenecks during the first few days of implementation, especially in Lagos where the airport sits within a densely populated urban environment.
Unlike many international airports located far from city centres, the Lagos airport corridor connects multiple communities, including Ikeja, Oshodi and Isolo, making the toll gate a critical transit route for both travellers and local commuters.
“In Lagos, if you look at the positioning of the toll gate, it is actually to the right of the international airport where you have commuters transitioning between terminals or going to other parts of Ikeja, Oshodi and Isolo,” she explained.
The FAAN chief noted that although the congestion began easing after the initial days, the government decided to temporarily allow both cash and electronic payments to ensure smoother movement around airport corridors.
“We’re grateful to Mr. President. He was able to step in. He understood the uniqueness of the airport environment.
“For him, it wasn’t just about implementing a directive. He realised that if we implemented the policy without looking at the broader infrastructure challenges, we would continue to have problems,” she noted.
Under the new arrangement, FAAN will continue deploying contactless payment cards while also accepting cash transactions temporarily until the payment infrastructure improves.
Kuku described the development as a “big win for the industry” as it provides additional time to strengthen payment channels and upgrade infrastructure around airport toll points.
“So we will continue to use contactless cards and non-cash payments, but we can also use cash until we get a broader view of the number of people who can actually use contactless payments,” she said.
Beyond payment reforms, Kuku also outlined FAAN’s broader strategy to transform Nigeria’s aviation sector by positioning the Lagos airport as a major regional hub.
She noted that some of Africa’s most successful aviation hubs—such as Cairo International Airport, O. R. Tambo International Airport, and Addis Ababa Bole International Airport—have built strong transit systems that attract passengers travelling between multiple destinations.
“What works extremely well for them is that they have not just made their airports a destination but a hub.
“A hub is an airport environment where transit passengers can move from one location to another without necessarily making that country their final destination,” she said.
According to her, Nigeria currently records relatively low passenger traffic compared with the size of its economy, with aviation penetration estimated at less than two per cent of the population.
To address this gap, FAAN is pursuing strategies that include improving business activity, increasing airline connectivity through bilateral agreements and developing transit infrastructure at Nigerian airports.
A key part of this transformation is the ongoing rehabilitation of terminals at the Lagos international airport, which Kuku said is expected to be completed within 22 to 24 months.
The project includes the construction of a temporary terminal to support operations while the main facility undergoes upgrades.
Several international airlines—including Air France, KLM Royal Dutch Airlines, Ethiopian Airlines, and Middle East Airlines—have already moved into the temporary facility.
Kuku also disclosed that a recent fire incident at the airport caused only minimal disruption to operations.
“So yes, we did have a fire incident last week Monday. It had a bit of an impact but it was minimal,” she said.
The FAAN boss noted that airport technology systems had to operate manually for several days before full operations were restored.
Despite the setback, she maintained that the rehabilitation timeline remains unchanged.
Looking ahead, FAAN plans to redesign airport processes to improve the overall passenger journey—from arrival at airport gates to departure.
This includes integrating biometric technology, e-gates and digital check-in processes to streamline passenger flow.
“At the end of the day, when you look at the airport experience, it’s all about how the passenger feels from the beginning to the end,” Kuku said.
She added that the introduction of a dedicated transit facility within the new airport design would be one of the most significant improvements, allowing Nigeria to compete more effectively with major aviation hubs across Africa.
Olapeju is a journalist and aviation reporter.
