Amidst initial challenges envisaged in its implementation, the Federal Airports Authority of Nigeria (FAAN) has officially launched the contactless and cashless payment system beginning with the Murtala Muhammed International Airport (MMIA), Lagos and the Nnamdi Azikiwe International Airport, Abuja.
The system unveiled during a press conference at the MMIA on Monday was described as a comprehensive cashless and contactless payment solution which effectively eradicates payment of physical cash at all strata of the airports.
These include all airports, airport access gates, car parks and VIP lounges.
The authority is projecting a 75 per cent increase in revenue from the deployment of the initiative, starting with 50 per cent from the pilot implementation and 75 per cent as the system extends to other airports across the country.
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“We project a 50 percent increase in revenue collection at this pilot stage, rising to 75 percent as we integrate more points, with the goal of tripling revenue within the first year of full implementation,” said the Managing Director of FAAN, Olubunmi Kuku during the unveiling and demonstration of the payment solution at the MMIA, Lagos.
Ending Years of opaque revenue management
Over the decades, there have been complaints from stakeholders over what they called ‘opaque’ management system especially from non-aeronautical revenues.
The non-aeronautical revenues are revenues generated outside airline operations. FAAN has an enlarged revenue stream, generating money from different sources outside landing and parking, passenger services classified as the aeronautical revenues.
Some of the sources include access control (toll gates) at various airports especially Lagos and Abuja where over 300,000 vehicular movements are recorded monthly.
Move to ramp up revenue
Daily Trust reports that no fewer than 20 airports generated N382,149,252,045 from January to December 2024, in the country.
Out of these airports, Lagos alone accounted for 67% followed by the Nnamdi Azikiwe International Airport which accounted for 21.3 per cent.
The figure on percentage contribution on generation and collection by the Federal Airports Authority of Nigeria (FAAN) between January and December 2024 showed that MMA generated N256,067,290,722.42 followed by Abuja which generated N81,219,777,298.42.
With a projected 75 per cent increase in revenue with the deployment of the new automation system, the revenue could increase to over N500bn from both airports, according to analysts.
Represented by the Director of Public Affairs and Consumer Protection of FAAN, Henry Agbebire at the unveiling, the Managing Director of FAAN disclosed that the authority’s brand Ambassadors would be deployed at all airport access gates to assist customers in onboarding on the automated payment system.
She disclosed that the transition to cashless and contactless system was in response to the demand of customers for a modern and more transparent payment system.
With the system, she said, “We are building a system that is more transparent,” adding this highlights the commitment of FAAN to national development through increased revenue generation.
Kuku added that the authority would systematically expand to other airports in a phased manner.
The MD said, “Let me be clear: by significantly reducing our reliance on physical cash, we are building a system that is inherently more transparent. Every transaction will be electronic, traceable, and secure.
“This directly enhances our revenue assurance capabilities, ensuring that every Naira due to the Authority is duly collected and accounted for. This is not just good for FAAN; it is a testament to our commitment to national development and fiscal responsibility.
“Furthermore, embracing these digital trends ensures that our airports remain competitive and aligned with global best practices. We are sending a clear message to the world that Nigeria is open for business, with infrastructure that meets international standards.”
Kuku further explained that the cashless card would be available at all airport access gates in Lagos and Abuja.
“I encourage you to collect yours, and to activate and fund it immediately. This launch is a critical milestone, but it is not the final destination. FAAN remains steadfast in its commitment to continuous improvement. Following the successful implementation in Lagos and Abuja, we will systematically expand this cashless policy to all other airports nationwide in a phased manner,” she added.
Director of Commercial and Business Development of FAAN, Adebola Agunbiade, disclosed that FAAN had set a target of the first quarter of 2026 for a complete phase out of cash transactions across all airports.
She stated that the new system is built on four pillars ‘to significantly enhance operational efficiency; to reduce congestion and delays for a smoother passenger experience; to improve revenue collection and accountability and to firmly align FAAN with global best practices for seamless airport access and service delivery.
She said, “For FAAN, we project a 50% increase in revenue collection at this pilot stage, rising to 75% as we integrate more points, with the goal of tripling revenue within the first year of full implementation. These additional funds will be strategically reinvested into further infrastructural development across our airports.
“For Airport Users, you will enjoy greater convenience, faster transactions, and reduced risk of theft. This policy also promotes financial inclusion, extending services to those with limited access to traditional banking.”
She explained that for businesses, the authority had ensured that transaction costs are kept low to protect the profit margins of our business partners, and reliable internet services will be available to support seamless operations.
“An initiative of this magnitude does not succeed without a comprehensive awareness campaign. We have already begun engaging stakeholders through forums, such as the one held at the Sheraton Hotel, and will intensify efforts with billboards, social media assets, radio jingles, and posters at access gates to drive adoption,” she added.
She reiterated that there would be full implementation across all FAAN-operated airports by the first quarter of 2026.
“Furthermore, following the success at the access gates, we intend to expand this cashless policy to other areas, including casual flights, VIP lounges, car parks, and car hire operations.
“Every month, our access gates in Lagos and Abuja recorded over three hundred thousand vehicular entrances respectively. Our VIP and Protocol lounges serve thousands yearly and we believe we can improve the quality of service to our customers when we can receive payments conveniently and transparently,” she added.
What experts are saying?
As the implementation begins, experts say there is the need for the authorities to ensure a seamless transition without hitches.
Also, some passengers who spoke with our correspondent expressed fear over network glitches which might cause unnecessary delay and long queues especially at access gates.
Speaking with our correspondent, General Secretary of the Aviation Roundtable, Mr. Olumide Ohunayo said it is long overdue.
“This is long overdue and expected with the rate at which the minister and his team are moving, right from the regulator to all agencies, they are moving from manual to IT and infotech and this is to improve service delivery.
“And the beauty is that they are even looking at the regulations again to see how it can be fine-tuned. I am happy that FAAN has taken up this position regarding the toll, and I think it will be the most effective.
“It is ridiculous when you drive past those toll booths and you see officers and senior staff of FAAN sitting in the booths when they are supposed to be in the office developing policies and working out how to improve revenue generation, they are there struggling to collect N500. Even at a stage I began to wonder, because that’s about the only tolling booth I have seen in the world whereby the person sitting in there is stretching his hands and asking cars to start coming…”
Another aviation analyst, Group Capt. John Ojikutu said, “If you don’t know what you are looking for, you may not or cannot get it. There was Avitech before now doing cashless services from FAAN allied services and operators to FAAN. How has that been?
“When you sell eggs daily for a price but don’t know the number sold, you cannot know how much to expect. Check the passengers’ traffic figures from the NCAA, NAMA and FAAN to know if they are the same or corresponding to one another.”
