The Managing Director of the Federal Airports Authority of Nigeria, Olubunmi Oluwaseun Kuku, on Tuesday defended the agency’s shift to electronic payment systems at airports, explaining to lawmakers that the move is designed to prevent revenue leakages and enhance accountability.
Kuku made the remarks during her appearance before the House of Representatives Committee on Finance, chaired by James Abiodun Faleke, which is conducting a Revenue Monitoring Exercise for 2023–2025 with a focus on internally generated revenue among federal MDAs.
“Every Kobo Must Be Accounted For”
Responding to concerns about airport congestion following the rollout of cashless payments, Kuku stressed that the reform is crucial and aligns with the Federal Government’s fiscal reform agenda.
“This initiative is about accountability and sustainability. We are ensuring that every kobo due to the Federal Government is collected without leakages while improving operational efficiency,” she said.
FAAN has now deployed electronic payment systems across toll gates and other revenue points, ensuring that all funds are transparently processed and fully remitted.
While enforcement officially began on Sunday, preparatory activities had been ongoing for several months.
Months of Preparation
Kuku highlighted that public sensitization, stakeholder engagement, and media campaigns have been in place since mid-2025. She acknowledged minor delays experienced at airports initially but described them as temporary.
“This is a transition that will ultimately benefit everyone,” she added.
Multiple Payment Options Available
She further clarified that FAAN-issued cashless cards are not the sole payment option. Users can also access:
Annual E-Tags for frequent travelers.
VIP Stickers for approved users.
Personal bank ATM cards, including contactless/NFC-enabled cards.
FAAN-issued Cashless Cards available at airports and partner banks.
Kuku encouraged motorists to use contactless or NFC-enabled ATM cards to reduce transaction time and confirmed that domestic cards, such as Verve, are compatible.
Linking Revenue to Better Services
The FAAN MD stressed that enhanced revenue collection will directly support airport infrastructure, maintenance, and modernization projects across Nigeria. She advised travelers to prepare in advance of arrival.
“The ultimate goal is better service delivery, improved infrastructure, and a more transparent system that works for everyone,” she said.
As lawmakers intensify oversight on government revenue, FAAN’s cashless enforcement is being watched as a potential model for wider digital revenue reforms across other federal agencies.
