The Federal Airports Authority of Nigeria (FAAN) has clarified that President Bola Ahmed Tinubu did not order the suspension of the agency’s cashless toll payment system at the nation’s airports, but rather directed that the process be improved before full implementation.
Managing Director of FAAN, Olubunmi Kuku, made the clarification on Thursday during a press conference at the Murtala Muhammed Airport in Lagos, explaining that the president’s directive was intended to refine the system and address operational challenges observed during the early phase of its rollout.
Her remarks come a day after the Minister of Aviation and Aerospace Development, Festus Keyamo, told State House correspondents that President Tinubu had directed the immediate suspension of the airport cashless toll policy following concerns about traffic congestion.
Kuku, however, stated that the president’s instruction was not to abandon the initiative but to revert temporarily to a hybrid payment system that accommodates both cash and electronic payments while the agency improves the process.
“The president did not ask us to suspend the cashless initiative outright,” Kuku said. “What he directed was that we review the process, refine the implementation and ensure that the system works efficiently before it is fully rolled out. For us as an agency and for the Ministry of Aviation, this is a major win.”
According to her, FAAN had embarked on extensive public sensitisation ahead of the policy’s introduction, including collaboration with the National Orientation Agency to inform commuters and airport users about the transition to a cashless toll payment system.
“We started a lot of enlightenment campaigns, and the National Orientation Agency publicised the initiative as far back as October last year,” she said. “The policy itself followed a directive approved by the Federal Executive Council, and we were working toward implementing that directive.”
Kuku noted that FAAN had initially advocated for a hybrid payment model that would allow both electronic and cash transactions, but the agency was given a firm deadline for implementing the cashless system.
Following the rollout, however, the agency observed significant traffic congestion, particularly around the toll gates leading into the Lagos airport. According to Kuku, the situation prompted the president to instruct FAAN to temporarily revert to the previous system while refining the operational framework.
“The president saw the gridlock created by the rollout and asked that we revert to the status quo or adopt a hybrid approach. That is exactly what we are doing now,” she explained. “This will allow us to improve the system while continuing to onboard users.”
Kuku disclosed that although FAAN had undertaken extensive public awareness efforts, many commuters and passengers were unaware that the agency would strictly enforce the March 1 deadline for the cashless transition.
She revealed that the agency had recorded significant uptake during the enrolment process, with over 100,000 users registered for the electronic payment system between October and early March. Notably, about 60,000 users were enrolled within the final three days leading up to the deadline.
“For us, that level of enrolment within such a short period is a major success,” she said.
Despite the initial traffic challenges, Kuku noted that the technology deployed for the cashless system performed effectively, with FAAN recording a success rate of about 99 percent in card-based transactions.
However, she acknowledged that the physical layout and location of toll gates around the Lagos airport contributed to the traffic bottlenecks experienced during the rollout.
“The challenge is not limited to airport users alone,” she explained. “In Lagos, many commuters pass through the airport corridor daily, including workers and people travelling to other parts of the city. This makes the toll gate location less than ideal for a system that requires quick electronic processing.”
She added that in Abuja, the situation improved significantly within a few days of the rollout, with noticeable reductions in traffic congestion by the third day.
Looking ahead, FAAN plans to refine the payment system by improving technology reliability, expanding public awareness campaigns, and introducing more payment options for users.
Kuku said the agency would also deepen collaboration with private sector partners to deploy globally tested solutions and expand access to electronic toll payment tools such as cards and electronic tags.
“Going forward, we want to ensure the technology works seamlessly and that users are better informed about the system,” she said. “We will also provide more options, including cards and e-tags, while working with private sector partners who have implemented similar systems successfully in other regions.”
The FAAN managing director emphasised that the cashless initiative remains a critical reform designed to enhance operational efficiency and reduce revenue leakages within the airport system.
“As we continue to refine the process, people should understand that the initiative has not been halted,” she said. “The directive simply allows more time for people to be onboarded while ensuring the system works smoothly.”
According to her, the hybrid payment arrangement will remain in place temporarily, allowing commuters to continue paying cash where necessary while gradually transitioning to electronic payment methods.
She stressed that the ultimate goal of the initiative is to modernise airport operations and strengthen financial accountability within the aviation sector.
“One of the key objectives of this policy is to block revenue leakages and ensure transparency in toll collection,” Kuku added. “With improved processes and increased user participation, we believe the system will ultimately deliver the intended benefits for the aviation industry and the travelling public.”
