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FAAN Reaffirms Nationwide Cashless Payments by Feb 28

Managing Director/Chief Executive of the Federal Airports Authority of Nigeria (FAAN), Mrs. Olubunmi Kuku

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The Managing Director/Chief Executive of the Federal Airports Authority of Nigeria (FAAN), Mrs. Olubunmi Kuku, has reaffirmed the Authority’s commitment to fully implementing a nationwide cashless payment system across all airport payment points with effect from February 28, 2026.

Mrs. Kuku reiterated the policy during a stakeholder engagement meeting on Wednesday with executives and members of the National Union of Air Transport Employees (NUATE), the Air Transport Services Senior Staff Association of Nigeria (ATSSSAN), and the Association of Nigeria Aviation Professionals (ANAP), who visited FAAN to seek clarification on the discontinuation of cash transactions at airports.

The engagement provided a platform for extensive dialogue, underscoring FAAN’s commitment to inclusive stakeholder consultation and transparent communication on key operational reforms.

Speaking at the meeting, the FAAN MD/CEO explained that the cashless policy aligns with global aviation industry best practices and Federal Government directives aimed at strengthening transparency, accountability, and efficiency in public sector financial management.

She cited a Treasury Circular dated November 24, 2025, issued by the Office of the Accountant General of the Federation and signed by Accountant General Shamseldeen Ogunjimi, which mandates all Ministries, Departments and Agencies (MDAs) to discontinue physical cash collections and payments following Federal Executive Council approval.

“There is no going back on this decision,” Mrs. Kuku stated, adding that the initiative will enhance revenue assurance, improve service delivery, and promote operational integrity across Nigeria’s airports.

The FAAN chief executive further noted that the cashless reform forms part of the Authority’s broader strategy to deepen stakeholder engagement, build trust, and ensure unions, concessionaires, service providers, and partners are actively involved in key operational decisions.

She highlighted key benefits of the cashless system, including reduced revenue leakages, improved transaction traceability, faster payment processing, and enhanced public confidence in airport operations.

Addressing concerns about the use of Paystack as a third-party platform, Mrs. Kuku clarified that Paystack only functions as a payment gateway and does not receive government revenue.

 She explained that all payments made via Point of Sale terminals are transferred directly into designated Federal Government accounts.

Union representatives were briefed on the implementation framework and transition strategies ahead of the February 28 deadline and expressed satisfaction with the explanations provided, acknowledging that the plan is practical and workable.

MMIA Ikeja, Lagos.

The policy rollout marks another milestone in FAAN’s reform agenda aimed at modernising airport operations, strengthening institutional accountability, and reinforcing stakeholder collaboration across the aviation sector.

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AIRPORTS

FAAN, Air Force Forge Stronger Alliance to Secure Nigeria’s Airports

FAAN Managing Director, Mrs. Olubunmi Kuku and Air Vice Marshal Japhet Ekwuribe, Commander of the National Air Defence Corps during the visits to FAAN headquarters Lagos on Tuesday

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Nigeria’s aviation security architecture is set for a major boost as the Federal Airports Authority of Nigeria (FAAN) and the Nigerian Air Force move to deepen collaboration in safeguarding the nation’s airports.

FAAN Managing Director, Mrs. Olubunmi Kuku, made this clear during a high-level engagement with the Commander of the National Air Defence Corps, Air Vice Marshal Japhet Ekwuribe, in Lagos, where both institutions reaffirmed their commitment to tighter operational synergy.

At the heart of the renewed partnership is a shared determination to stay ahead of evolving security threats within airport environments.

Kuku stressed that modern aviation security demands more than isolated efforts, highlighting the need for intelligence sharing, coordinated strategies, and sustained inter-agency cooperation.

“We are dealing with dynamic security challenges that require strong partnerships and proactive coordination,” she said, noting that FAAN remains committed to working closely with the Air Force on airside patrols, surveillance, and sensitive flight operations.

She also raised concern over increasing cases of land encroachment around airport perimeters, describing it as a critical risk to aviation infrastructure that requires urgent and collective action.

In response, Air Vice Marshal Ekwuribe commended FAAN’s leadership for its forward-thinking approach, describing the collaboration as a strategic step toward strengthening surveillance and rapid response capabilities across Nigeria’s airports.

“This engagement provides an opportunity to reinforce institutional ties and improve operational effectiveness in tackling shared security priorities,” he said.

Both parties agreed to develop practical frameworks that will enhance coordination, improve monitoring systems, and ensure swift responses to potential threats.

The renewed alliance signals a proactive shift in Nigeria’s aviation security posture, one that prioritizes collaboration, vigilance, and resilience in protecting critical national assets.

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AIRPORTS

Nigeria Defends Aviation Charges, Says Costs Reflect Sector Reforms

Mr. Henry Agbebire-Director of Public Affairs and Consumer Protection-Federal Airports Authority of Nigeria

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Nigeria has pushed back against claims of excessive aviation charges, arguing that current pricing reflects long-overdue reforms rather than inefficiency or overpricing.

Reacting to recent concerns raised by the International Air Transport Association (IATA), the Federal Airports Authority of Nigeria (FAAN) says the country’s aviation charges must be understood within the context of decades of underinvestment and ongoing sector transformation.

In a detailed policy response, Director of Public Affairs and Consumer Protection at FAAN, Henry Agbebire, said the narrative portraying Nigeria as an expensive aviation market is “technically correct but strategically incomplete.”

“The real issue is not simply ‘high charges.’ It is why those charges exist,” Agbebire stated.

IATA had classified Nigeria among countries with aviation charges above global averages—a trend seen across Africa, where fees are estimated to be about 15 percent higher than global benchmarks. However, FAAN insists that focusing solely on pricing ignores deeper structural realities.

According to Agbebire, many of Nigeria’s recent tariff adjustments are not new burdens but corrections of long-standing underpricing. “You cannot run a 21st-century aviation system on 2002 pricing,” he said, noting that several charges remained unchanged for nearly two decades despite inflation and rising operational costs.

He pointed out that even revised tariffs remain competitive. For instance, cargo charges increased from ₦7 to ₦20 per kilogram still fall below inflation-adjusted values.

Beyond statutory charges, FAAN highlighted other major cost drivers often overlooked in global assessments. These include sharp increases in jet fuel prices—by as much as 300 percent—and foreign exchange constraints that once left up to $850 million in airline funds trapped in the country.

“These factors, spanning fuel, forex, and logistics, often outweigh statutory charges in determining ticket prices,” Agbebire explained.

He further emphasized that aviation development comes with unavoidable financial realities. “There is no version of aviation development that is both cheap and world-class,” he said.

Despite the challenges, FAAN maintained that Nigeria is actively reforming its aviation ecosystem. Government interventions in fuel pricing, efforts to improve cost transparency, and ongoing infrastructure upgrades are all part of a broader strategy to enhance competitiveness.

Agbebire stressed that aviation charges should be viewed as investments rather than mere costs. “If higher charges fund safer airports, modern infrastructure, improved passenger experience, and global compliance, then they are not merely costs; they are investments,” he said.

He concluded that Nigeria’s aviation sector is undergoing a necessary transition—one aimed at long-term sustainability and growth.

“The real story is not that Nigeria is expensive,” Agbebire added. “The real story is that Nigeria is paying the price of transformation.”

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AIRPORTS

FG, Bi-Courtney End 20-Year Airport Dispute in Landmark N132bn Deal Reset

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After more than two decades of legal battles and stalled aviation progress, Nigeria has finally cleared one of its most stubborn infrastructure roadblocks.

In a decisive breakthrough, the Federal Government has reached a historic settlement with Bi-Courtney Aviation Services Limited over the long-contested Murtala Muhammed Airport Terminal 2 (MM2) concession, bringing an end to a dispute that has lingered for over 20 years.

The agreement, brokered by Aviation Minister Festus Keyamo and approved by the Federal Executive Council (FEC) in Abuja, delivers sweeping concessions on both sides in what officials describe as a “win-win” resolution with immediate economic impact.

At the heart of the deal is Bi-Courtney’s decision to forgo its N132 billion Supreme Court judgment debt against the Federal Government. The company has also relinquished its exclusivity rights tied to the MM2 concession and handed back control of the Murtala Muhammed Airport Terminal 1 (MM1).

In exchange, the Federal Government has restored Bi-Courtney’s rights to complete and operate its long-delayed hotel and conference centre project within the airport axis under a revenue-sharing framework.

The agreement goes beyond dispute resolution—it resets the commercial architecture of Lagos aviation. Plans are already underway to relocate regional flight operations to MM2, supported by apron expansion to handle increased aircraft movement. This is expected to unlock immediate revenue streams for the government while maximizing the underutilized terminal’s capacity.

Industry observers say the deal removes long-standing legal and operational bottlenecks that have hindered major aviation projects, including the proposed Lekki International Airport.

The settlement also aligns with broader sector reforms, notably plans to establish a private-sector-driven aircraft leasing company aimed at improving Nigerian airlines’ access to modern fleets under competitive terms.

Minister Keyamo praised the spirit of compromise shown by all parties, noting that the agreement reflects a renewed commitment to investment-friendly policies and sustainable aviation growth.

The resolution was further strengthened by the collaboration between Keyamo and Bi-Courtney Chairman Wale Babalakin, whose shared professional background and alignment on national interest helped drive negotiations to a successful close.

With this deal, Nigeria not only ends a costly legal chapter but opens a new runway for aviation expansion, anchored on cooperation, efficiency, and long-term value creation.

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