KEY POINTS
- The Federal Airports Authority of Nigeria (FAAN) has reverted to a temporary hybrid payment system (cash and digital) at airport toll gates.
- The move follows a directive from President Bola Tinubu to ease traffic gridlocks caused by the sudden enforcement of a 100% cashless policy on March 1.
- FAAN Managing Director Mrs. Olubunmi Kuku stated that the “status quo” will remain while the authority refines the technology and onboards more users.
- Over 100,000 users have been enrolled on the digital platform since October 2025, with a 99% success rate recorded for the cashless cards.
MAIN STORY
Following significant travel disruptions and severe traffic congestion at major airports in Lagos and Abuja, the Federal Government has ordered a temporary suspension of the mandatory cashless toll policy. FAAN Managing Director, Mrs. Olubunmi Kuku, announced on Thursday that the authority has shifted to a hybrid model, allowing for both cash and digital transactions at all airport entrances. This presidential intervention aims to prevent passengers from missing flights due to processing delays at the gates.
Kuku admitted that the initial rollout lacked a comprehensive pilot phase due to the pressure of meeting the March deadline. The “window” provided by the President will now serve as an extended trial period to enhance public enlightenment and improve the underlying technology. Despite the gridlock, Kuku highlighted that the digital system itself is robust, with four payment options already available and over 60,000 new users registered in the three days leading up to the deadline alone.
During this interim period, FAAN intends to onboard more private technology partners to streamline options such as e-tags and smart cards. The authority is also strengthening internal checks and balances to ensure that cash transactions are properly accounted for and remitted to the federal government without leakages. There is currently no fixed date for a return to a 100% cashless system, as the focus has shifted to ensuring a seamless and inclusive implementation process.
WHAT’S BEING SAID
- “He saw the traffic gridlock we were having… and directed us to revert temporarily to the status quo using a hybrid approach. That is what we are doing now, and it is a win for the industry,” stated Mrs. Olubunmi Kuku, MD of FAAN.
- “The President has given us time to go back and refine the process… and ensure that we have more users onboarded.”
- “At least for now, we can accommodate cash payments while people continue to obtain and activate their cards.”
WHAT’S NEXT
- FAAN will launch an enhanced public awareness campaign to educate commuters on the four existing digital payment options.
- Technical teams will work on integrating additional private-sector technology partners to offer more e-tag and smart card solutions.
- Commuters are still encouraged to obtain their FAAN cards during this hybrid phase to avoid future delays when the digital system eventually becomes mandatory again.
BOTTOM LINE
The Bottom Line is that the “cashless” mandate has been paused to prioritize traveler convenience over rapid digital adoption. While FAAN maintains that the technology works, the presidential directive ensures that commuters will not be stranded at the gates while the authority refines its user onboarding process.
