In a major policy shift aimed at modernizing airport operations and increasing revenue, the Federal Airports Authority of Nigeria (FAAN) has announced a ban on cash transactions and plans to implement a nationwide tariff review.
The announcement was made on Monday by FAAN’s Director of Commercial and Business Development, Mrs. Adebola Agunbiade, during an industry event in Lagos. She revealed that the decision forms part of the agency’s broader efforts to improve efficiency and align its revenue structure with global standards.
Agunbiade highlighted that currently, 92 percent of FAAN’s revenue is generated from aeronautical sources, with only 8 percent coming from non-aeronautical activities — a figure far below the global benchmark, where non-aeronautical income often accounts for over 40 percent of total airport earnings.
“We have to find the means to review our tariff in such a way that it’s not too much on you, but it’s also helping us to pay our bills,” she explained.
Agunbiade assured stakeholders that adequate notice would be given before any new tariffs take effect. “We will not be getting a review on a tariff that probably has been done too recently. But we are reviewing our tariff, and we will also ensure that we notify you early enough so that you, as businesses, can plan towards it,” she added.
Meanwhile, FAAN’s Managing Director and Chief Executive Officer, Mrs. Olubunmi Kuku, reaffirmed the agency’s commitment to a fully automated payment system. She noted that the volume of calls and inquiries from service providers regarding payment renewals and applications had prompted the need for automation and transparency.
“Automation makes it easier for you to track your payment. We’re going cashless and contactless in payments,” Kuku said.
The move to go cashless and adjust tariffs is expected to enhance operational transparency, curb revenue leakages, and bring FAAN closer to international best practices in airport management.
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