The Federal Airports Authority of Nigeria (FAAN) has announced a total ban on all cash transactions at airports nationwide, effective February 28, 2026.
The directive was contained in an internal memo signed by the Managing Director and Chief Executive, Mrs Olubunmi Kuku.
This move is in compliance with the federal government’s mandate to transition all Ministries, Departments, and Agencies (MDAs) to a fully cashless system to improve transparency and reduce revenue leakage.
The ban applies to all official FAAN business, including car park fees, access gate tolls, VIP lounge charges, and concession payments.
The ban follows an approval by the Federal Executive Council (FEC) for government agencies to fully transition to a cashless system.
It also aligns with an earlier circular from the office of the Accountant-General of the Federation, which expressed concern over the persistent violation of cashless regulations by MDAs. The AGF had warned that physical cash collection “negates government policies and weakens the integrity of Federal Government e-collection systems.”
“Further to the approval on cessation of cash collection transactions by the Federal Executive Council, it has become expedient that FAAN complies strictly with the policy of cashless economy by conducting all its financial and business transactions through a cashless system,” part of the memo reads.
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In the circular, the FAAN managing director ordered all directorates to stop accepting or processing cash.
“Accordingly, a directive is hereby given that all cash collections or transactions in the conduct of FAAN’s official businesses MUST STOP with effect from 29 February 2026.”
Accepted Payment Methods
All transactions must now be made via electronic channels, such as Point of Sale (PoS) terminals, online transfers, and approve Digital payment gateways.
“Alternative approved payment channels should be fully adopted, and no cash transactions should be accepted beyond the stated deadline. Failure will attract stiff penalties,” the memo stated.
FAAN views this move as a strategic step to enhance transparency, block revenue leakages, and improve operational efficiency by reducing queues and the risks associated with handling physical cash.
The agency has warned that any staff or department found accepting physical cash after the deadline will face “stiff penalties”.
Kuku stressed that this shift is aimed at boosting revenue generation, promoting accountability (ensuring that every naira paid settles directly into the Treasury Single Account) and ensuring efficiency, thereby reducing queue times at toll points and creating a more seamless contactless experience for travellers.
Pinnacle Daily recalls that FAAN had, while launching the ‘Operations Go Cashless’ at the Murtala Muhammed International Airport (MMIA), Lagos, in September last year, set the first quarter of 2026 as the deadline to fully go cashless.
FAAN projected that the integration of the cashless policy would lead to an increase of 75 per cent in revenues generated.
Kuku said the initiative is carried out in partnership with Paystack.
Victor Ezeja is a passionate journalist, scholar and analyst of socioeconomic issues in Nigeria and Africa. He is skilled in energy reporting, business and economy, and holds a master's degree in mass communication.
