FAAN to Increase Tariffs, Scraps Cash Payments at Airports
The Federal Airports Authority of Nigeria (FAAN) has announced plans to increase tariffs for all service providers across its airports. As part of its efforts to boost revenue generation, FAAN will also transition to an automated and contactless payment system, discontinuing cash payments at all payment points.
According to Adebola Joy Agunbiade, Director of Commercial and Business Development at FAAN, the authority currently generates 92% of its revenue from aeronautical sources, while only 8% comes from non-aeronautical sources. She noted that this is in contrast to developed countries, which generate over 40% of their revenue from non-aeronautical sources.
“We have to find the means to review our tariff in such a way that it’s not too much on you but it’s also helping us to pay our bills,” Agunbiade said. FAAN assured service providers that they will be notified early enough before the tariff increase is implemented.
The authority is also working on restructuring lease agreements, with new terms that are more favorable to businesses. “We’ve come up with different terms. So if anyone is coming for a renewal or for an application, you will see that some of the terms in the agreements have changed,” Agunbiade explained.
FAAN’s Managing Director and CEO, Olubunmi Kuku, emphasized the importance of automation, stating that it will make payments easier and faster for service providers. “Automation makes it easier for you to track your payment. We’re going cashless and contactless payment. So it is easier and faster. People can use these cards for payment points across our terminals,” Kuku said.
The new payment system, which will use airport cards, is expected to be rolled out across all FAAN-managed airports. Kuku also warned that FAAN will revoke the licenses of car hire service providers and Bureau de Change operators who engage in touting activities.
In addition, FAAN is taking steps to decongest the Lagos airport access roads by removing tankers parked on the roads. Kuku stated that drastic measures will be taken against tankers that do not operate in the airport environment, citing security risks and the obnoxious scene they create. #FAAN to Increase Tariffs, Scraps Cash Payments at Airports#
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