FAAN Mandates Cashless Transactions Across Airports from February 29
The Federal Airports Authority of Nigeria (FAAN) has announced a sweeping policy that will eliminate all cash collections and transactions within its operations nationwide, directing every department and directorate to transition fully to electronic payment systems by the end of February.
The decision was communicated through an internal memorandum dated 3 February 2026 and issued by FAAN’s Managing Director and Chief Executive, Olubunmi Kuku.
The directive stems from an approval granted by the Federal Executive Council (FEC), which authorised the cessation of cash handling across relevant government institutions as part of broader economic reforms aimed at deepening Nigeria’s cashless financial ecosystem.
According to the memo, all cash collections linked to FAAN’s official activities must cease completely with effect from 29 February 2026, marking a definitive deadline for compliance. The authority stressed that after this date, no staff member or unit is permitted to process or accept cash payments under any circumstance.
The document instructed directors to take immediate and proactive steps to ensure a seamless transition to approved alternative payment platforms. These include electronic transfer systems, digital payment gateways, and other non-cash channels authorised for official use.
Directors are also expected to sensitise personnel and stakeholders to avoid operational disruptions once the policy comes into force.
FAAN made it clear that the order carries enforcement weight, warning that failure to comply will attract “stiff penalties.” Though specific sanctions were not outlined in the memo, officials indicated that disciplinary measures would apply to any department or personnel found violating the directive after implementation.
Policy analysts say the development reflects a growing push within Nigeria’s public sector to adopt digital financial systems capable of improving transparency, accountability, and efficiency.
The transition is also seen as part of the Federal Government’s wider strategy to reduce reliance on physical currency, curb revenue leakages, and strengthen audit trails across ministries, departments, and agencies.
Within the aviation environment, the new rule is expected to affect a wide range of financial interactions, including payments made by airlines, concessionaires, contractors, travellers, and other airport users.
Industry stakeholders note that replacing cash transactions with automated payment solutions could reduce processing time, limit administrative bottlenecks, and improve accuracy in revenue tracking.
Aviation finance experts further observe that electronic systems offer stronger safeguards against fraud and mismanagement, as digital transactions generate verifiable records that can be audited in real time.
They add that the policy aligns with global best practices in airport administration, where major international hubs have long transitioned to cashless models for operational and security reasons.
FAAN officials say the weeks leading up to the deadline will be used to ensure infrastructure readiness, including upgrading payment interfaces, training staff, and notifying all service partners.
The authority believes the preparation period will allow departments to address technical or logistical challenges before the enforcement date.
The directive signals one of the most comprehensive internal financial reforms undertaken by FAAN in recent years and underscores the Federal Government’s determination to accelerate digital transformation across strategic sectors.
Observers note that if successfully implemented, the initiative could become a template for other public institutions seeking to modernise their financial systems and align with Nigeria’s evolving digital economy framework.
As the deadline approaches, FAAN has reiterated that strict adherence to the policy is compulsory and urged all directorates to comply fully in order to ensure a smooth and efficient transition to a cashless operational environment.
