By Dennis Agaba
The Federal Airports Authority of Nigeria (FAAN) has confirmed that all cash transactions at airports across the country will be discontinued from February 28, 2026, as part of a broader push for a fully cashless payment system.
Managing Director, Mrs. Olubunmi Kuku, reiterated the authority’s commitment to the reform during a meeting with executives and representatives of the National Union of Air Transport Employees (NUATE), who had sought clarity on the policy shift.
According to FAAN’s Director of Public Affairs, Mr. Henry Agbebire, the engagement provided a platform for open dialogue, reflecting FAAN’s policy of inclusive stakeholder consultation.
Aligning With Global Best Practices
Mrs. Kuku explained that the transition to a cashless system aligns with global aviation management standards and Federal Government directives designed to enhance transparency, accountability, and operational efficiency. She cited a Treasury Circular dated November 24, 2025, issued by the Office of the Accountant General of the Federation, which mandates all government agencies to discontinue cash collections and payments.
“There is no going back on this decision,” she emphasized, adding that the reform positions Nigeria’s airports for greater operational integrity, improved service delivery, and stronger revenue assurance.
Stakeholder Engagement at the Core
FAAN’s cashless initiative is part of a broader strategic agenda to foster transparency, build trust, and ensure that unions, partners, concessionaires, and service providers are actively involved in operational decisions.
Mrs. Kuku said the authority’s proactive engagement with NUATE demonstrates that institutional reforms must go hand in hand with stakeholder collaboration. The transition is designed to reduce leakages, improve transaction traceability, speed up service delivery, and increase public confidence in airport operations.
How the System Works
Concerns had been raised about the use of Paystack as a third-party payment platform. Mrs. Kuku clarified that Paystack functions only as a payment gateway. All funds are credited directly to Federal Government accounts through Point of Sale (PoS) terminals, and no revenue is held in any Paystack account.
The NUATE delegation was briefed on the implementation plan to ensure a smooth transition by the February 28 deadline. At the conclusion of the meeting, union members expressed satisfaction with FAAN’s framework, describing it as practical and achievable.
A Milestone in Airport Modernisation
The move marks a key milestone in FAAN’s ongoing reform agenda, reinforcing the authority’s commitment to modernising airport operations, strengthening institutional accountability, and promoting constructive engagement with stakeholders across Nigeria’s aviation sector.
