FAAN Ends Cash Payments, Rolls Out Digital Payment System

The Federal Airports Authority of Nigeria (FAAN) has officially begun phasing out cash transactions across its airports, unveiling a new digital payment scheme designed to enhance efficiency, transparency, and revenue assurance. The rollout, dubbed “Operation Go Cashless,” went live on September 29, 2025, at key revenue points in major airports, with plans to expand the system nationwide over the coming months.

At the launch held at Murtala Muhammed International Airport in Lagos, FAAN’s Director of Public Affairs and Consumer Protection announced that all revenue-collection points—including access gates, car parks, VIP lounges, and protocol sections—will gradually cease accepting physical cash. Under the new policy, passengers and users will be required to make payments via contactless methods such as cards, USSD codes, digital links, or a dedicated FAAN “Go Cashless Card.” The policy is being piloted first in Lagos and Abuja before being extended to other airports across the country.

FAAN officials defended the shift as an essential modernization step, noting that reliance on cash had long created risks of collection leakages, delays, theft, and opacity in operations. They said the transition would ensure that every transaction is electronic, traceable, and secure. The authority expects that, even during the pilot stage, revenue collection would rise significantly. In fact, estimates indicate a 50 percent increase in revenue during the initial phase, with the figure climbing to 75 percent as more transaction points come online. Once fully implemented, FAAN projects that revenues could triple within the first year of operation.

To support users during the transition, FAAN has deployed trained ambassadors at airport terminals to guide passengers, assist with onboarding, and explain the use of the new systems. In addition, users are being encouraged to collect and activate the FAAN Go Cashless Card at terminal access points and load funds to the card. The cards are designed with no expiration date and can be topped up with as little as ₦1,000. For situations where network or device failure may interfere with digital transactions, FAAN has indicated that fallback measures will be assessed to safeguard user experience.

The agency has partnered with Paystack, a Nigerian fintech company, to build and secure the digital payment infrastructure. Paystack executives said transactions will be encrypted, tokenized, and protected by multiple security layers. They affirmed that the system complies with global standards and will shield users’ sensitive data from exposure.

FAAN’s Managing Director underscored that the initiative aligns with the Authority’s broader strategic goals. The funds realized from increased efficiency and reduced leakages will be reinvested into upgrading airport infrastructure, improving passenger amenities, and maintaining facility standards. She reiterated that the full cessation of cash payments is expected by the first quarter of 2026, giving stakeholders time to adapt.

While the shift has been broadly welcomed, analysts note that success will hinge on execution. The transition may face challenges including network outages, resistance from personnel accustomed to cash operations, and concerns among passengers who may lack access to digital tools or payment cards. Some critics argue the change risks excluding passengers without banking accounts or smartphones. The need for redundancy and contingency plans is pressing.

Moreover, FAAN must manage relations with concessionaires, vendors, and tenants who often operate on cash-based systems. Compliance enforcement will require monitoring, audits, and possibly penalties for non-conforming parties. There is also call for policy clarity on how unresolved disputes, refunds, or reversed transactions will be handled under an electronic-only scheme.

On the broader scale, the move signals Nigeria’s intent to align its aviation sector with global digital standards. Several world airports now operate largely cash-free environments, leveraging smart payment systems to streamline throughput and reduce fraud. For FAAN, the shift is as much about perception as operation—it seeks to project Nigerian airports as modern, transparent, and competitive.

For passengers, the benefits are clear: faster processing at gates and car parks, reduced queuing, fewer delays, and improved accountability in billing. The involvement of airport staff as guides is intended to smooth the learning curve for users unfamiliar with digital payments.

 

The timeline ahead will test FAAN’s resolve and operational capacity. If the phased rollout proceeds without major hitches and digital adoption is high, the airline industry and airport users alike may see tangible gains. But missteps or technical breakdowns could sow frustration. Ultimately, the success of “Operation Go Cashless” depends on how well FAAN navigates the digital divide, enforces compliance, maintains system resilience, and earns public trust in the new payment era.