The Federal Airports Authority of Nigeria has banned cash transactions for all services nationwide, effective February 28. This was announced in a statement on Thursday.
FAAN said the reaffirmation became necessary after executives of various aviation unions visited its management to seek clarification on the cessation of cash transactions at airports on Wednesday.
The unions represented were the National Union of Air Transport Employees (NUATE), the Air Transport Services Senior Staff Association of Nigeria, and the Association of Nigeria Aviation Professionals.
He said engagement provided an opportunity for robust dialogue, reflecting FAAN’s open-door policy and commitment to inclusive stakeholder consultation.
The managing director of FAAN, Olubunmi Kuku, expressed resolve to fully implement a cashless system across all airports’ payment points nationwide.
Ms Kuku emphasised that the transition to a cashless system is not only in line with global aviation management best practices but also consistent with federal government directives.
She added that the directive was aimed at enhancing transparency, accountability, and operational efficiency.
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.
She noted that the circular mandated the cessation of cash transactions in all government dealings.
Ms Kuku also said that the directive followed approval by the Federal Executive Council for ministries, departments and agencies to discontinue physical cash collections and payments as part of broader public finance 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,” she said.
Ms Kuku noted that the reform also forms part of FAAN’s broader strategic agenda to deepen stakeholder engagement.
According to her, this will foster transparency, build trust, and ensure that partners, unions, concessionaires, and service providers are carried along in key operational decisions.
Ms Kuku added that by proactively engaging NUATE and other critical stakeholders, FAAN would continue to demonstrate that institutional reforms and stakeholder collaboration must go hand in hand.
The FAAN boss highlighted the benefits of a cashless system for the aviation ecosystem, including reduced leakage, improved transaction traceability, faster service delivery, and enhanced public confidence in airport operations.
She addressed concerns about using Paystack as a third-party platform, clarifying that it serves only as a payment gateway for processing transactions.
She assured stakeholders that no revenue is paid into any Paystack account, as all payments are made directly from point of sale terminals into designated federal government accounts.
At the end of the engagement, the union members expressed satisfaction with the explanations provided and acknowledged that the implementation framework is both tenable and practical.
(NAN)