Federal Airports Authority of Nigeria Sets February 28 Deadline for Nationwide Cashless Operations at Airports

The Federal Airports Authority of Nigeria (FAAN) has reaffirmed its resolve to eliminate cash transactions across all airport payment points nationwide, announcing February 28, 2026, as the effective date for the full transition to a cashless system.

The directive will apply to all service touchpoints within Nigerian airports, requiring passengers, concessionaires, and vendors to adopt digital payment channels ahead of the deadline.

Reform Backed by Federal Mandate
The initiative follows a Treasury Circular dated November 24, 2025, issued by the Office of the Accountant General of the Federation after approval by the Federal Executive Council.

The circular mandates all Ministries, Departments, and Agencies (MDAs) to discontinue physical cash collections as part of broader public finance reforms aimed at strengthening transparency and blocking revenue leakages.

Speaking during a consultative meeting with the National Union of Air Transport Employees (NUATE), FAAN’s Managing Director/Chief Executive, Mrs. Olubunmi Kuku, described the transition as irreversible and aligned with global best practices in aviation administration.

“There is no going back on this decision,” she stated, emphasizing that the cashless framework is designed to enhance operational integrity and improve revenue assurance across the nation’s airports.

Payment Gateway Clarification
Addressing concerns raised over the engagement of Paystack as a payment partner, FAAN clarified that the fintech firm functions solely as a payment gateway and does not retain government funds.

According to the authority:
All transactions will be processed via Point of Sale (POS) terminals and approved digital channels.
Funds will be remitted directly into designated Federal Government accounts.

The system guarantees full traceability of transactions to curb human-induced revenue leakages.

FAAN stressed that the arrangement ensures transparency while safeguarding public funds.

Stakeholder Engagement and Transition Plan
The consultative session with NUATE was convened to address operational concerns and ensure a smooth rollout.

FAAN disclosed that the union expressed satisfaction with the implementation framework and pledged support for the transition.

The authority projects that the reform will deliver:
Faster and more efficient service delivery at airport touchpoints;
Improved accountability and public confidence;
Stronger revenue monitoring mechanisms across the aviation value chain.

With days to the deadline, FAAN has urged airport users and service providers to make necessary adjustments, including adopting card-based and other approved electronic payment platforms.

The transition marks a significant step in modernising Nigeria’s aviation ecosystem and aligns with the Federal Government’s broader push for transparency and efficiency in public sector revenue management.