By Dickson Omobola & Matilda Ikediobi
Federal Airports Authority of Nigeria, FAAN, Monday, projected that its earnings would triple, saying revenue collection could increase by 50 per cent during the pilot phase and reach 75 per cent with full implementation of the cashless policy.
FAAN also said it would phase out cash payments at all its airports by the first quarter of 2026, noting that the upgrade was in alignment with global standards.
Addressing newsmen in Lagos, the Managing Director of FAAN, Mrs Olubunmi Kuku, expressed optimism that the transition would succeed, saying transactions would be electronic, traceable, and secure.
Kuku, represented by the Director of Public Affairs and Consumer Protection, Henry Agbebire, said: “We believe this will triple our revenue. One of the reasons why this is necessary is because we have suffered difficulties in our system based on a cash system that has become a bane.
“Effective today, September 29, 2025, the collection of physical cash will be phased out gradually at all FAAN revenue points. We are beginning this national rollout with our flagship international gateways: the Murtala Muhammed International Airport, Lagos, and the Nnamdi Azikiwe International Airport, Abuja. For us, the plan is to totally eradicate cash payments in the first quarter of next year.
“What does this mean for our passengers and airport users? It means faster, seamless, and more secure transactions. It means saying goodbye to delays and inconveniences associated with cash handling. This move is a direct response to your demand for modern, efficient, and world-class service.”
Meanwhile, the Director of Commercial and Business Development at FAAN, Adebola Agunbiade, said: “We project a 50 per cent increase in revenue collection at this pilot stage, rising to 75 per cent 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.
“We are phasing out cash transactions at all participating FAAN revenue points. Our technology partner, Paystack, has deployed contactless payment terminals at our access gates, car parks, and VIP lounges. This means that each motorist and customer will use their own contactless card for payment. Human involvement in cash collection will be eliminated, thereby removing opportunities for revenue leakage and ensuring that every naira is accounted for.”
Also speaking, the Director of Commerce at Paystack, Fisayo Kolawole, said mitigating fraud and ensuring security motivated FAAN to partner with Paystack.
Kolawole said: “All transactions are encrypted and tokenised, which means all of the card information that you can see are just numbers. They don’t mean anything to the everyday user. The encryption and tokenisation have been done on the back end. Even if somebody gets hold of the card, he is unable to use it in a way that he likes.
“All our card details are encrypted end to end using industry-standard TLS and SSL protocols during transmission. And Paystack never stores sensitive card information in plain text. We use tokenisation, which replaces these card numbers that you’re seeing. And it cannot be reversed without the issuing bank.”
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