The Federal Airports Authority of Nigeria (FAAN) has announced a nationwide ban on cash transactions for all its services across airports in Nigeria, effective February 28.
The directive was disclosed in a statement issued on Thursday in Lagos and signed by FAAN’s Director of Public Relations and Consumer Protection, Henry Agbebire.
According to the agency, the clarification became necessary after executives of aviation unions visited FAAN management on Wednesday to seek explanation over the planned cessation of cash payments at airports.
The unions involved include the National Union of Air Transport Employees (NUATE), the Air Transport Services Senior Staff Association of Nigeria (ATSSSAN), and the Association of Nigeria Aviation Professionals (ANAP).
Agbebire said the engagement provided an opportunity for what he described as robust dialogue, in line with FAAN’s open-door policy and commitment to stakeholder consultation.
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FAAN Managing Director, Mrs. Olubunmi Kuku, during the meeting, reiterated the agency’s resolve to fully implement a cashless payment system at all airport payment points nationwide.
Kuku said the transition aligns with global best practices in aviation management and complies with Federal Government directives aimed at strengthening public finance administration.
She referenced 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, mandating the cessation of cash transactions in all government dealings.
According to her, the directive followed approval by the Federal Executive Council for Ministries, Departments and Agencies (MDAs) to discontinue physical cash collections and payments as part of broader financial reforms.
“There is no going back on this decision. The cashless initiative aligns FAAN with national financial management reforms while positioning Nigeria’s airports for greater operational integrity, improved service delivery and stronger revenue assurance,” Kuku said.
She added that the reform forms part of FAAN’s broader strategy to deepen stakeholder engagement, foster transparency, build trust and ensure that unions, concessionaires and service providers are carried along in key operational decisions.
Kuku also highlighted the benefits of the cashless system to the aviation ecosystem, including reduction in revenue leakages, improved transaction traceability, faster service delivery and enhanced public confidence in airport operations.
Addressing concerns about the use of Paystack as a third-party platform, she clarified that Paystack serves only as a payment gateway for processing transactions.
According to her, no revenue is paid into any Paystack account, as all payments made through Point of Sale terminals are transferred directly into designated Federal Government accounts.
At the end of the meeting, union representatives reportedly expressed satisfaction with the explanations provided and acknowledged that the implementation framework was practical and workable.
