Kuku mandates cash transaction cessation nationwide, gives Feb 28 deadline

• Abolishes physical cash receipt

The Federal Airports Authority of Nigeria (FAAN) has taken a definitive step toward modernising its revenue collection, with Managing Director Mrs Olubunmi Kuku mandating a total cessation of cash transactions nationwide by February 28, 2026.

This move is not just a localised initiative but a direct alignment with the Federal Government’s broader fiscal reforms, specifically the “No Physical Cash Receipt Policy” reinforced by the Office of the Accountant-General of the Federation.

All cash collections and transactions across FAAN operations—including access gates, car parks, and lounges—must stop by February 28, 2026.

An internal memo dated February 3, 2026, warned that any breach of this directive would attract stiff penalties.

Under the new federal framework, Accounting Officers (including airport managers) will be held personally liable for any violations of cash collection within their jurisdictions.

Agencies were given a 45-day window (starting early February) to ensure functional Point of Sale (PoS) terminals and other electronic platforms are fully operational.

Kuku has framed this transition as a shift toward “transparency, accountability, and excellence.” By eliminating physical cash, FAAN aims to reduce revenue leakage as electronic systems create a traceable audit trail, making it significantly harder to divert funds, modernise the passenger experience by leveraging partnerships with payment processors like Paystack, the “Go Cashless” initiative introduced dedicated cards and encrypted payment methods to speed up terminal transactions.

It also allows moving away from cash reduces the physical risks associated with handling and transporting large volumes of currency at high-traffic airports like Lagos and Abuja.

While the transition began at major hubs like Murtala Muhammed International Airport (MMIA), it is now scaling to all secondary airports.

Travellers and vendors should ensure they have an active electronic payment method (debit card, mobile app, or the FAAN “Go Cashless” card) to avoid service disruptions at access points and facilities.

Kuku emphasised that the transition to a cashless system is not only in line with global best practices in aviation management but also consistent with Federal Government directives aimed at enhancing transparency, accountability, and operational efficiency.

She said, “There is no going back on this decision. The cashless initiative aligns FAAN with national financial management reforms while positioning Nigeria’s airports for greater operational integrity, improved service delivery, and stronger revenue assurance.

Kuku noted that the reform also forms part of FAAN’s broader strategic agenda to deepen stakeholder engagement by fostering transparency, building trust, and ensuring that partners, unions, concessionaires, and service providers are carried along in key operational decisions.

By proactively engaging NUATE and other critical stakeholders, she said FAAN continues to demonstrate that institutional reforms and stakeholder collaboration must go hand in hand.

Beyond compliance with government policy, the FAAN boss highlighted the enormous benefits of a cashless system for the aviation ecosystem, including reduced leakage, improved transaction traceability, faster service delivery, and enhanced public confidence in airport operations.

Addressing concerns about the use of Paystack as a third-party platform, she clarified that it is only a payment gateway for processing transactions.

She assured stakeholders that no revenue is paid into any Paystack account, as all payments are made directly from Point of Sale (POS) terminals into designated Federal Government accounts.

The delegation was comprehensively briefed on the processes and strategies put in place to ensure a seamless transition by the February 28, 2026, deadline.

At the end of the engagement with the unions, , they expressed satisfaction with the explanations provided and acknowledged that the implementation framework is both tenable and practical.

The move marks another significant milestone in FAAN’s ongoing reform agenda, reinforcing its commitment to modernising airport operations, strengthening institutional accountability, and promoting constructive engagement with stakeholders across the aviation value chain.

Wole Shadare