The Federal Airports Authority of Nigeria (FAAN) has unveiled plans to transition all payment systems at its airports to fully automated, contactless platforms, while also preparing to implement tariff adjustments across the country’s aviation hubs.
Speaking during a stakeholders’ forum organized by the Directorate of Commercial and Business Development (DCBD) in Lagos on Monday, FAAN officials said the dual reforms are designed to boost operational efficiency and expand the authority’s revenue base.
FAAN’s Director of Commercial and Business Development, Adebola Joy Agunbiade, explained that 92 percent of the authority’s current revenue stems from aeronautical services, while only eight percent comes from non-aeronautical sources — a stark contrast to global standards where non-aeronautical income contributes over 40 percent.
“Our goal is to reverse this trend and make our airports more commercially viable,” Agunbiade stated, noting that tariff increases would be introduced gradually, with prior notification to stakeholders. “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.”
On the shift toward a cashless environment, FAAN Managing Director, Olubunmi Kuku, said Lagos airport has commenced pilot testing of the new contactless payment model, with plans to expand nationwide.
“All payment will soon be made online using our cards. It is an airport card. You tap and go. It is a very seamless and straightforward process,” Kuku said, emphasizing that cash transactions will be completely phased out.
The initiative will cover terminal payments, tollgates, and parking facilities, featuring Electronic Cash Register (ECR) devices and automated platforms for transparency and efficiency.
FAAN also revealed it generated N2 billion from “below-the-line” platforms in 2024 and is currently renegotiating lease agreements following legal reviews to create more investor-friendly conditions for concessionaires and service providers.
