By Juliet Ezeh
Nigeria’s aviation sector is set for a major operational shift as the Federal Airports Authority of Nigeria moves to eliminate cash transactions across all airport payment points nationwide.
The Managing Director of the Federal Airports Authority of Nigeria, Mrs. Olubunmi Kuku, has reaffirmed that the transition to a fully cashless system will take effect on February 28, 2026, describing the policy as irreversible and critical to strengthening transparency and revenue accountability within airport operations.
The clarification followed a visit by executives of the National Union of Air Transport Employees, who sought further explanation regarding the discontinuation of cash payments at airports. The engagement, according to FAAN’s Director of Public Affairs and Consumer Protection, Mr. Henry Agbebire, formed part of the authority’s stakeholder consultation process.
Rather than framing the move as merely administrative, Kuku positioned it within the broader context of national public finance reforms. She referenced a Treasury Circular dated November 24, 2025, issued by the Office of the Accountant-General of the Federation, which mandates Ministries, Departments and Agencies to halt physical cash collections and payments. The directive followed Federal Executive Council approval aimed at strengthening fiscal discipline across government institutions.
By aligning with the federal directive, FAAN is effectively integrating airport operations into Nigeria’s wider digital revenue management framework. Industry observers note that airports are high-volume transaction environments, covering landing fees, passenger service charges, concession payments, and other service-related collections. Transitioning these transactions to digital platforms is expected to significantly reduce leakages and improve audit trails.
Kuku emphasised that the reform goes beyond compliance. According to her, the initiative will enhance operational integrity, accelerate service delivery, and improve public confidence in airport management. In aviation environments where time efficiency and security are critical, digital payments are increasingly viewed as standard practice in global airport systems.
One of the key concerns raised during the engagement centred on the use of Paystack as a payment gateway. The FAAN management clarified that Paystack functions strictly as a transaction processor and does not hold government revenue. All payments, the authority explained, are routed directly from Point of Sale terminals into designated Federal Government accounts.
This distinction, aviation analysts say, is crucial in maintaining public trust and preventing misconceptions about third-party platforms. Payment gateways facilitate transaction processing but do not retain funds when properly configured within government financial systems.
Beyond revenue assurance, experts suggest that the move could also strengthen data analytics within airport management. Digital transactions generate real-time financial records that can support forecasting, budgeting, and infrastructure planning. Over time, this could enhance decision-making and resource allocation across Nigeria’s airport network.
The aviation ecosystem includes airlines, ground handling companies, concessionaires, retailers, unions, and service providers. By engaging NUATE ahead of implementation, FAAN appears to be managing reform through dialogue rather than unilateral enforcement. Union representatives reportedly expressed satisfaction with the implementation framework after receiving detailed briefings on the transition plan.
Stakeholder buy-in is particularly important in an industry where operational disruptions can have ripple effects on flight schedules, passenger experience, and logistics chains. A seamless rollout will depend on infrastructure readiness, staff training, system reliability, and public awareness.
Financial technology adoption in public institutions has accelerated in recent years as the government pushes for greater accountability and efficiency. Within the aviation sector, a cashless environment may also enhance security by reducing risks associated with physical cash handling.
For passengers and airport users, the transition is expected to normalise card payments, electronic transfers, and POS transactions for all airport-related charges. While some adjustment may be required in the early stages, digital payment systems are already widely adopted in other sectors of the Nigerian economy.
As the February 28, 2026 deadline approaches, FAAN’s firm stance signals a broader commitment to institutional reform. By embedding digital financial controls into airport operations, the authority is positioning Nigeria’s aviation infrastructure within a modernised governance framework designed to improve transparency, accountability, and service efficiency.
The success of the policy will ultimately depend on consistent implementation and system reliability. However, if effectively executed, the cashless mandate could mark a defining step in transforming how public aviation revenues are managed nationwide.
Juliet Ezeh is the founder and chief reporter at Westbridge Reporters with over 7 years of experience in journalism. She covers crime, industry, policy, and social developments, delivering timely and accurate reporting.