The Federal Airports Authority of Nigeria (FAAN) has announced a sweeping transition to a fully cashless system across all its operations, directing every department and unit to immediately discontinue the acceptance of physical cash payments.
The new policy will take effect from February 29, 2026, marking a major shift in how transactions are handled at Nigerian airports.
Directive Signed by FAAN MD Olubunmi Kuku
The order was formally signed on February 3, 2026, by FAAN’s Managing Director, Olubunmi Kuku, and circulated to all directorates within the authority.
In the internal memo, Kuku stated that the decision follows instructions from the Federal Executive Council, which has mandated all government agencies to adopt a fully cash-free system.
She directed all directors to ensure that every charge, fee, and official transaction under FAAN’s operations is migrated to approved electronic payment channels without delay.
Severe Sanctions for Non-Compliance
The memo carried a strong warning to staff members across the agency.
“All cash collections or transactions in the conduct of FAAN’s official businesses MUST STOP with effect from February 29, 2026,” the directive stated clearly.
It further warned that any employee who continues to accept physical cash beyond the deadline will face severe disciplinary sanctions.
This signals a strict enforcement approach, leaving little room for non-compliance.
What the Policy Means for Airports and Travelers
With this directive, all payments at FAAN-managed airports — including service charges, administrative fees, and other official transactions — will now be processed strictly through electronic platforms.
Passengers, airline operators, contractors, and other airport users will be required to use approved digital channels such as bank transfers, card payments, or other officially recognised electronic systems.
The move is expected to:
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Improve transparency in revenue collection
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Reduce leakages and unofficial transactions
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Strengthen financial accountability
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Speed up transaction processing
Aligning With Nigeria’s Cashless Policy
FAAN’s decision aligns with the Federal Government’s broader push to deepen digital finance adoption across public institutions. Nigeria has in recent years intensified efforts to reduce reliance on paper money and encourage electronic transactions.
The cashless drive is designed to modernise government operations, improve tracking of public funds, and enhance efficiency across ministries, departments, and agencies.
By implementing the policy at the nation’s airports, FAAN becomes one of the key agencies reinforcing the government’s financial digitisation agenda.
A Major Shift in Public Sector Financial Management
Industry observers say the transition marks a significant milestone in public sector reform within Nigeria’s aviation industry. Airports are high-traffic environments with multiple daily transactions, making them strategic points for enforcing financial transparency.
With the February 29 deadline approaching, FAAN directorates are expected to intensify preparations to ensure a smooth transition and avoid operational disruptions.
