The Managing Director/Chief Executive Officer of the Federal Airports Authority of Nigeria (FAAN), Mrs. Olubunmi Kuku, has reiterated the Authority’s determination to fully implement a cashless payment system in all airports effective from February 28 this year.
She made the pledge during a visit by executives and members of the National Union of Air Transport Employees (NUATE), who sought clarification on the decision to discontinue cash transactions at airports.
Speaking during the meeting with the NUATE’s delegation, Kuku maintained that the transition to a cashless system was not only in line with global best practices in aviation management but also consistent with Federal Government’s directives aimed at enhancing transparency, accountability, and operational efficiency at the airports nationwide.
She cited a Treasury Circular dated November 24, 2025, issued by the Accountant-General of the Federation, Shamseldeen Ogunjimi, mandating the cessation of cash transactions in all government dealings to support her stance.
- Advertisement -
Kuku further explained that the directive on adoption of digital payment platforms followed approval by the Federal Executive Council for Ministries, Departments and Agencies (MDAs) to discontinue physical cash collections and payments as part of broader public finance reforms, adding that “there is no going back on this decision.”
She stressed that the cashless initiative also aligned the agency with national financial management reforms while positioning Nigeria’s airports for greater operational integrity, improved service delivery, and stronger revenue assurance.
Kuku noted that the reform also formed part of FAAN’s broader strategic agenda to deepen stakeholder engagement by fostering transparency, building trust, and ensuring that partners, unions, concessionaires, and service providers are carried along in key operational decisions.
According to her, by proactively engaging NUATE and other critical stakeholders on issues affecting the aviation sector’s development, FAAN continues to demonstrate that institutional reforms and stakeholder collaboration must go hand in hand.
Apart from compliance with government policy, the FAAN boss spoke on the benefits of a cashless system to the aviation ecosystem, including reduction in leakages, improved transaction traceability, faster service delivery, and enhanced public confidence in airport operations.
On concerns raised about the use of Paystack as a third-party platform, she clarified that Paystack merely served as a payment gateway for processing transactions and that no revenue is paid into any Paystack account, as all payments are made directly from Point of Sale (POS) terminals into designated Federation Account.
Kuku briefed the NUATE delegation on the processes and strategies put in place by the FAAN’s management to ensure a seamless transition by the February 28, 2026 deadline.
At the end of the engagement, the union members expressed satisfaction with the explanations provided by her and acknowledged that the implementation framework remained feasible.
Industry stakeholders believe that the digital payment initiative is another desirable step in FAAN’s ongoing reform agenda, reinforcing the management’s commitment to modernising airport operations, strengthening institutional accountability, and promoting constructive engagement with stakeholders across the aviation value chain.
