The Federal Airports Authority of Nigeria (FAAN) has announced is initiating a major shift in its operational approach.
Now, with immediate effect that will be no more cash transactions across all airports.
Also, it reveals plans to review and potentially increase tariffs nationwide.
Speaking at an industry event in Lagos, FAAN’s Director of Commercial and Business Development, Adebola Agunbiade, said the move is part of efforts to modernise airport operations and adopt global best practices.
Also, she explained that while 92% of FAAN’s revenue currently comes from aeronautical sources, only 8% is generated from non-aeronautical activities.
This is a stark contrast to international benchmarks, where non-aeronautical income often contributes over 40%.
“This imbalance needs correction. We are taking steps to rework our revenue model in a way that supports financial sustainability while being mindful of the economic impact on users,” Agunbiade noted.
“We understand the importance of predictability in business planning, so any adjustments to tariffs will be communicated early to give service providers ample time to prepare.”
She emphasised that FAAN was mindful not to impose hikes on tariffs that were recently adjusted.
Also, the Director acknowledged the need for a review to meet operational and financial obligations.
FAAN’s Managing Director and CEO, Olubunmi Kuku, also weighed in.
She highlighted the volume of calls and enquiries from service providers regarding payments and renewals.
Also, she stressed that the shift to cashless and contactless payments would streamline transactions and improve transparency.
“Automation is the future, and we’re embracing it fully. Going cashless will not only simplify payments but also enhance accountability for both FAAN and its partners,” Kuku said.
The twin announcements reflect FAAN’s broader efforts to digitise airport operations and improve efficiency.
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Also, it would ensure alignment with international standards and equitable management of the burden of change across stakeholders.
