The Federal Airports Authority of Nigeria (FAAN) has directed all its directorates to immediately halt cash collections and transactions across its operations nationwide, in compliance with a Federal Government policy mandating a full transition to electronic payment systems.
The directive, conveyed in an internal memorandum dated 3 February 2026, follows approval by the Federal Executive Council (FEC) for government agencies to enforce strict adherence to Nigeria’s cashless economy framework.
According to the memo, the cessation of all cash payments within FAAN’s official business activities will take effect from 29 February 2026, after which no cash handling will be permitted under any circumstance.
Signed by FAAN’s Managing Director and Chief Executive, Olubunmi Kuku, the directive emphasised that the policy is mandatory and binding across all departments, stressing that compliance is not optional.
Directors have been instructed to urgently implement measures to ensure that all financial transactions – including service payments, levies, and operational charges – are processed exclusively through approved electronic channels.
The memo states that all directorates must adopt alternative payment platforms without delay and sensitise relevant staff and stakeholders to prevent disruptions before the deadline. It further warns that any violation of the order after implementation will attract “stiff penalties,” signalling the authority’s intention to enforce the policy strictly.
Industry observers note that FAAN’s move aligns with broader Federal Government efforts to digitise public-sector financial processes, reduce leakages, enhance transparency, and curb corruption risks associated with cash handling.
Nigeria’s cashless policy, championed in recent years by financial regulators and fiscal authorities, aims to modernise payment systems while strengthening audit trails across public institutions.
Within the aviation sector, analysts say the shift could significantly streamline airport operations by reducing manual payment procedures and eliminating delays linked to cash verification and reconciliation.
Travellers, airlines, concessionaires, and service providers interacting with FAAN will now be required to use electronic transfer platforms, point-of-sale systems, or other officially approved digital payment solutions.
Aviation stakeholders also believe the measure could improve revenue accountability within airport management, an area that has historically faced scrutiny over financial transparency.
By eliminating physical cash handling, FAAN is expected to strengthen internal controls, simplify reporting processes, and enhance real-time monitoring of transactions.
The authority’s leadership described the directive as a necessary administrative step to align its operations with national economic reforms and global best practices in public finance management.
Officials say the transition period before the end-of-February deadline is intended to allow departments to upgrade payment infrastructure, train personnel, and inform partners and customers of the change.
With the aviation industry increasingly embracing digitalisation – from e-ticketing to biometric boarding systems – the elimination of cash transactions marks another milestone in the sector’s technological transformation.
Observers say successful implementation could set a precedent for other government agencies seeking to modernise their financial systems in line with Nigeria’s broader digital economy agenda.
FAAN has urged all departments to comply fully and promptly, reiterating that strict adherence to the directive is mandatory as the deadline approaches.
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