FAAN Bans Cash Transactions for Revenue Payments Effective Feb. 28
The Federal Airports Authority of Nigeria (FAAN) has banned cash transactions for all services nationwide effective Feb. 28.
This is contained in a statement signed by the Director of Public Relations and Consumer Protection at FAAN, Mr Henry Agbebire on Thursday in Lagos.
FAAN said that the reaffirmation became necessary after executives of the various aviation unions visited the FAAN management to sougth clarification on the cessation of cash transactions at airports on Wednesday.
The unions represented were the National Union of Air Transport Employees (NUATE); Air Transport Services Senior Staff Association of Nigeria (ATSSSAN); and Association of Nigeria Aviation Professionals (ANAP).
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 Mrs Olubunmi Kuku, expressed resolve to fully implement a cashless system across all airports’ payment points nationwide.
Kuku emphasised that the transition to a cashless system is not only in line with global best practices in aviation management 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.
Kuku also said that 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 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.
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, building trust, and ensuring that partners, unions, concessionaires, and service providers are carried along in key operational decisions.
Kuku added that by proactively engaging NUATE and other critical stakeholders, FAAN would continued to demonstrate that institutional reforms and stakeholder collaboration must go hand in hand.
The FAAN boss highlighted the benefits of a cashless system to the aviation ecosystem, including reduction in leakages, improved transaction traceability, faster service delivery, and enhanced public confidence in airport operations.
She addressed concerns raised about the use of Paystack as a third-party platform, clarifying that Paystack merely serves 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 (POS) 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. #FAAN Bans Cash Transactions for Revenue Payments Effective Feb. 28#
