The Federal Airports Authority of Nigeria (FAAN) has directed all its directorates to stop cash collections and migrate fully to electronic payment systems by 29 February 2026. The move is part of the Federal Government’s drive for a nationwide cashless economy.
The directive, contained in a memorandum dated 3 February 2026 and signed by FAAN Managing Director Olubunmi Kuku, follows approval from the Federal Executive Council (FEC) mandating compliance by government institutions with digital payment policies.
Under the new rule, no staff member or directorate will be allowed to accept or process cash for any official transaction from the deadline. FAAN has instructed departments to deploy approved digital payment platforms, upgrade financial systems where necessary, and inform partners, vendors, and service users about the transition.
The authority emphasised that violations will attract strict sanctions, signaling a zero-tolerance approach. Analysts say the policy is consistent with reforms aimed at improving fiscal discipline, revenue transparency, and reducing leakages from manual cash handling.
For the aviation sector, the policy will affect airlines, contractors, concessionaires, and passengers, who will now make payments through electronic transfers, payment gateways, or point-of-sale systems approved by FAAN. Stakeholders anticipate faster transactions, reduced queues, enhanced security, and improved operational efficiency at airports.
FAAN described the transition period as an opportunity to resolve technical challenges, train staff, and test payment systems to ensure smooth implementation. The move is seen as aligning Nigeria’s airport operations with international standards while accelerating digital transformation in key economic sectors.
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