Reps back FAAN cashless reform as Kuku defends move amid airport congestion

2026-03-03 - 17:28

By Gift ChapiOdekina, Abuja The Managing Director of the Federal Airports Authority of Nigeria (FAAN), Olubunmi Oluwaseun Kuku, on Tuesday defended the agency’s transition to electronic payment systems at airports, telling lawmakers the reform is aimed at curbing revenue leakages and improving accountability. Kuku spoke after appearing before the House of Representatives Committee on Finance, chaired by James Abiodun Faleke, which is conducting a Revenue Monitoring Exercise for 2023–2025, focusing on internally generated revenue among MDAs. “Every Kobo Must Be Accounted For” Addressing concerns over airport congestion following the cashless rollout, Kuku said the reform was necessary and aligned with the Federal Government’s fiscal reform agenda. “This initiative is about accountability and sustainability. We are ensuring that every kobo due to the Federal Government is collected without leakages while improving operational efficiency,” she said. FAAN has implemented electronic payment systems across toll gates and other revenue points to ensure all funds are transparently processed and fully remitted. Enforcement formally began on Sunday, though preparatory work started months earlier. Months of Preparation Kuku noted that public sensitization, stakeholder engagement, and media campaigns had been ongoing since mid-2025. She acknowledged some initial delays at airports but said they were temporary. “This is a transition that will ultimately benefit everyone,” she added. Multiple Payment Options Kuku clarified that FAAN-issued cashless cards are not the only means of payment. Available options include: Annual E-Tags for frequent users. VIP Stickers for approved users. Personal bank ATM cards, including contactless/NFC-enabled cards. FAAN-issued Cashless Cards available at airports and partner banks. She encouraged motorists to use contactless or NFC-enabled ATM cards to reduce transaction time and confirmed domestic cards, such as Verve, are compatible. Linking Revenue to Service Delivery Kuku emphasized that improved revenue collection would support airport infrastructure, maintenance, and modernization projects nationwide. She urged users to prepare ahead of arrival. “The ultimate goal is better service delivery, improved infrastructure, and a more transparent system that works for everyone,” she said. With lawmakers intensifying revenue oversight, FAAN’s cashless enforcement is seen as a test case for broader digital revenue reforms across government agencies.