The Cashless Policy has entered a stricter enforcement phase as the Federal Airports Authority of Nigeria (FAAN) ordered an immediate halt to cash transactions across its operations. The directive follows renewed Federal Government action to strengthen compliance with electronic revenue collection rules. Consequently, Nigeria’s aviation sector becomes one of the first to fully operationalise the tightened Cashless Policy framework.
In an internal memo dated February 3, 2026, Managing Director/Chief Executive Mrs Olubunmi Kuku directed all directorates to cease physical cash collections. She stated that all cash transactions in FAAN’s official business must stop by February 29, 2026. Failure to comply, she warned, will attract stiff penalties under the reinforced Cashless Policy regime.
The move follows a Treasury Circular issued by the Office of the Accountant-General of the Federation titled “Enforcement of No Physical Cash Receipt Policy for All Federal Government Revenue Transactions.” The circular referenced earlier directives, including OAGF/CAD/026/Vol.1/465–TRY/A8&B8/2008, OAGF/CAD/026/V.1/253–TRY/A1&BI/2015, and OAGF/CAD/026/V.1/354–TRY/A9&B9/2015. Those guidelines established the Treasury Single Account framework that underpins the national Cashless Policy.
According to the circular, government observed “great concern” over continued physical cash collections at Ministries, Departments and Agencies. It described the practice as a violation of the e-payment framework and warned that persistent breaches weaken federal e-collection systems. Therefore, authorities resolved to enforce stricter compliance measures to safeguard revenue integrity.
The directive clearly states that acceptance of physical cash, whether in naira or foreign currency, is prohibited for all federal revenue transactions. It further mandates that all payments must be processed electronically. In addition, agencies must display notices informing the public that cash payments are no longer accepted under the Cashless Policy.
Cashless Policy Enforcement Tightens Across MDAs
The circular places direct accountability on agency leadership. It states that Accounting Officers will be held responsible for any breaches traceable to their organisations. Meanwhile, Directors of Finance and Internal Audit Units are required to ensure full implementation and compliance monitoring.
Agencies currently handling cash were given forty-five days to deploy functional Point of Sale terminals or approved electronic platforms. This requirement ensures that the Cashless Policy is not merely declaratory but operational at every revenue point. However, compliance failures could trigger administrative sanctions or disciplinary measures.
FAAN’s swift action signals a major shift within Nigeria’s aviation ecosystem. Airports process high volumes of passenger service charges, concession fees and regulatory payments daily. Therefore, aligning fully with the Cashless Policy significantly reduces cash handling risks across terminals nationwide.
Mrs Kuku linked FAAN’s action to Federal Executive Council approval and broader fiscal reform objectives. She reaffirmed the authority’s commitment to conducting all financial transactions through approved electronic systems. The decision reinforces aviation sector alignment with federal financial governance reforms.
The enforcement drive also complements the broader monetary reform agenda championed by the Central Bank of Nigeria. The apex bank has long advocated digital transactions to enhance transparency and reduce systemic leakages. More details on FAAN regulatory updates can be found in our previous coverage here: https://nigerianflightdeck.com/faan-revenue-reforms.
Industry observers note that stricter enforcement of the Cashless Policy could improve audit trails and real-time revenue tracking. Electronic systems create transparent records that reduce opportunities for diversion or under-reporting. Meanwhile, centralised monitoring under the Treasury Single Account strengthens oversight mechanisms.
The renewed enforcement posture suggests that tolerance for non-compliance has narrowed significantly. By placing Accounting Officers directly on notice, government has elevated personal responsibility within the public finance structure. Consequently, the Cashless Policy now carries stronger institutional backing and measurable consequences.
International aviation bodies, including the International Civil Aviation Organization, emphasise financial transparency as part of sound aviation governance standards. Nigeria’s reinforced Cashless Policy aligns with such global best practices in revenue accountability.
As FAAN implements the directive ahead of its deadline, attention will likely shift to other revenue-generating agencies. The aviation authority’s early compliance positions it as a reference point within the federal system. Therefore, the coming months will test the depth and consistency of Cashless Policy enforcement nationwide.
