The Federal Airports Authority of Nigeria (FAAN) says it will maintain efforts to curb revenue losses at airport toll gates using a hybrid approach despite the suspension of the nationwide cashless payment policy. The system combines electronic payment channels with cash while operational improvements are implemented.
Managing Director of FAAN, Olubunmi Kuku, explained that the directive issued after deliberations by the Federal Executive Council does not cancel the policy. Instead, it provides additional time to refine the rollout process and improve user experience across airport access points. Click to watch full interview of Olubunmi Kuku on the Cashless Policy
The decision followed the intervention of President Bola Ahmed Tinubu, after severe gridlock was recorded at toll gates serving major airports, particularly in Lagos. Authorities feared the congestion could cause passengers to miss flights and disrupt airport operations.
Kuku described the adjustment as a constructive step that allows the aviation sector to refine implementation without abandoning the reform objective.
“You heard the Honourable Minister yesterday following the Federal Executive Council meeting where Mr. President asked us not necessarily to suspend but to ensure the process itself is improved before it gets rolled out,” she said.
“I consider this to be a major win for the Federal Airports Authority of Nigeria and the Ministry of Aviation.”
Hybrid Approach to Strengthen Revenue Accountability
The hybrid approach now allows both cash and electronic payments at airport toll gates while the digital system is improved. However, FAAN insists the central objective of blocking financial leakages remains unchanged.
Kuku explained that the cashless initiative was originally introduced to improve transparency and ensure government revenues are properly accounted for.
“You would recall that the purpose of the Federal Government circular was to block leakages,” she stated. “Even when cash collection continues temporarily, there will still be checks and balances to minimise revenue losses.”
Therefore, FAAN plans to strengthen monitoring systems, refine operational procedures and improve payment infrastructure. Meanwhile, collaboration with private sector technology partners will continue to ensure reliability of the electronic platform.
Further details on FAAN’s airport operations and reforms can also be found on the official Federal Airports Authority of Nigeria website.
Strong User Onboarding Despite Early Challenges
Despite the suspension, FAAN says the rollout recorded significant progress in passenger onboarding and payment technology performance.
According to Kuku, the agency registered more than 100,000 users on the electronic payment platform before the policy pause.
“From October to March 3, we actually had over 100,000 users enrolled,” she said. “Interestingly, about 60,000 of them joined in the final three days before enforcement.”
She described the numbers as encouraging, noting that the electronic cards deployed for toll payments achieved nearly full functionality.
“To be frank, we recorded about 99 percent success with the cashless cards deployed,” Kuku added.
However, the sudden surge of new users slowed toll processing and contributed to traffic congestion around airport access roads.
Airport Location and Gridlock Challenges
According to FAAN, congestion around Lagos airport toll gates was largely due to the location of the facility within a busy urban transport corridor.
Kuku noted that the toll gate does not exclusively serve passengers travelling through the airport. Instead, it also accommodates commuters heading to nearby commercial districts such as Ikeja.
“You would note that the location of the toll gate is not necessarily ideal because it is not only used by airport passengers,” she explained.
“It is within the Lagos environment, so you also have workers and commuters passing through the same corridor.”
The influx of first-time users attempting to activate payment cards simultaneously increased delays at the toll points. Consequently, the Federal Government stepped in to ensure that airport access remained smooth.
Policy Review Creates Room for Improvement
Meanwhile, FAAN believes the additional time granted by the Federal Government will improve the eventual rollout of the policy.
Kuku acknowledged that the original deadline left limited time to conduct extensive pilot testing before enforcement.
“What I will say is that we probably did not have enough time for a proper pilot stage based on the directive,” she said. “There was pressure to meet a deadline.”
Therefore, the temporary shift to a hybrid approach will allow FAAN to refine operational processes and expand public awareness.
The agency plans to intensify user education campaigns and increase access to payment channels such as electronic cards and e-tags.
“One priority is ensuring the technology works efficiently,” Kuku noted. “Secondly, we must ensure that users are properly enlightened.”
Path Toward Full Digital Toll Payments
For FAAN, the hybrid model represents a transitional phase rather than a policy reversal. Authorities maintain that the long-term goal remains a fully automated toll payment system across Nigerian airports.
In addition, the agency intends to adopt lessons from other regions where automated toll payments have improved efficiency and transparency.
“We will bring more private sector partners on board and apply lessons learned from other environments,” Kuku explained.
Ultimately, FAAN believes the hybrid approach will help balance operational efficiency with user convenience while safeguarding government revenue.
As implementation continues, aviation authorities remain confident that the improved system will eventually deliver a seamless and transparent airport toll payment framework across Nigeria.
