The Federal Airports Authority of Nigeria (FAAN) has announced a nationwide ban on cash transactions at all airport payment points, effective February 28.
The directive was disclosed in a statement issued in Lagos by FAAN’s Director of Public Relations and Consumer Protection, Mr. Henry Agbebire.
The move was reaffirmed after executives of key aviation unions the National Union of Air Transport Employees (NUATE), Air Transport Services Senior Staff Association of Nigeria (ATSSSAN), and the Association of Nigeria Aviation Professionals (ANAP) met with FAAN management to seek clarification on the policy.
According to FAAN, the engagement underscored its commitment to inclusive stakeholder consultation and open dialogue.
FAAN Managing Director, Olubunmi Kuku, said the transition to a cashless system aligns with global aviation best practices and Federal Government directives aimed at strengthening transparency and accountability.
She referenced a Treasury Circular dated November 24, 2025, issued by the Office of the Accountant-General of the Federation and signed by Accountant-General Shamseldeen Ogunjimi, mandating the cessation of cash transactions in government dealings.
Kuku also noted that the decision followed approval by the Federal Executive Council (FEC) directing Ministries, Departments and Agencies (MDAs) to discontinue physical cash collections as part of broader public finance reforms.
“There is no going back on this decision. The cashless initiative aligns FAAN with national financial management reforms, while positioning Nigeria’s airports for improved operational integrity and stronger revenue assurance,” she stated.
The FAAN boss highlighted benefits of the reform, including reduced revenue leakages, improved transaction traceability, faster service delivery, and enhanced public confidence in airport operations.
Addressing concerns about the use of Paystack as a payment platform, she clarified that it functions solely as a payment gateway. All funds collected through Point of Sale (POS) terminals are remitted directly into designated Federal Government accounts, not into any Paystack account.
Following the meeting, union leaders reportedly expressed satisfaction with FAAN’s explanations, describing the implementation framework as practical and workable.
With the new policy set to take effect nationwide, FAAN says the reform marks a significant step toward modernising financial operations across Nigeria’s aviation sector.
