The Federal Airports Authority of Nigeria has announced that all cash transactions at airports across the country will be discontinued from February 28, as part of efforts to strengthen transparency and modernise payment systems.
The decision was disclosed in a statement issued in Lagos by FAAN’s Director of Public Affairs and Consumer Protection, Henry Agbebire, who said the policy was reaffirmed after aviation union leaders met with FAAN management to seek clarification on the planned transition.
The unions present at the meeting included the National Union of Air Transport Employees, the Air Transport Services Senior Staff Association of Nigeria, and the Association of Nigeria Aviation Professionals.
FAAN’s Managing Director, Olubunmi Kuku, said the agency is determined to implement a fully cashless payment system at all airport service points nationwide.
“There is no going back on this decision. The cashless policy aligns with global aviation standards and supports the Federal Government’s financial management reforms,” Kuku said.
She explained that the directive follows a Treasury Circular issued on November 24, 2025, by the Office of the Accountant-General of the Federation, which ordered all government institutions to stop handling physical cash in official transactions.
According to her, the policy also stems from Federal Executive Council approval for Ministries, Departments and Agencies to phase out cash collections and payments as part of broader public finance reforms.
Kuku noted that the move is expected to improve accountability and efficiency in airport operations.
“The reform will reduce revenue leakages, enhance traceability of payments, speed up service delivery and strengthen public confidence in airport processes,” she stated.
She also addressed concerns raised by stakeholders about the use of Paystack, clarifying that the platform only functions as a payment gateway.
“No revenue is paid into any Paystack account. All payments go directly from POS terminals into designated Federal Government accounts,” Kuku explained.
The FAAN boss added that the agency’s engagement with labour unions reflects its commitment to consultation and transparency in implementing reforms.
She said the discussions helped reassure stakeholders that the framework for the new payment system is practical and workable.
