The Federal Airports Authority of Nigeria (FAAN) will cease all physical cash collections across its operations from February 29, 2026, following renewed enforcement of the Federal Government’s cashless revenue policy.
In an internal memo dated February 3, 2026, Managing Director/Chief Executive Mrs. Olubunmi Kuku directed all directorates to immediately halt cash transactions in the conduct of official business. She stated that no cash payments—whether in naira or foreign currency—would be accepted beyond the deadline, warning that non-compliance would attract stiff penalties under the reinforced regime.
The directive follows a Treasury Circular issued by the Office of the Accountant-General of the Federation titled “Enforcement of No Physical Cash Receipt Policy for All Federal Government Revenue Transactions.” The circular referenced earlier guidelines establishing the Treasury Single Account framework and expressed concern over continued physical cash collections at Ministries, Departments and Agencies in violation of the e-payment system.
According to the circular, persistent cash handling weakens federal electronic collection platforms and undermines revenue integrity. Authorities have therefore moved to strengthen compliance, placing direct responsibility on Accounting Officers for any breaches within their organisations. Directors of Finance and Internal Audit Units are also mandated to ensure full implementation and compliance monitoring.
Agencies currently handling physical cash were granted forty-five days to deploy functional Point of Sale terminals or approved electronic payment platforms at all revenue points. The policy requires clear public notices indicating that cash payments are no longer accepted, ensuring the transition is both operational and visible to stakeholders.
FAAN’s swift action positions Nigeria’s aviation sector among the first to fully operationalise the tightened framework. Airports process high volumes of passenger service charges, concession fees and regulatory payments daily, making the elimination of cash transactions a significant shift in operational practice. Management said the move aligns with Federal Executive Council approval and broader fiscal reform objectives aimed at enhancing transparency and accountability.
The enforcement drive complements the monetary reform agenda of the Central Bank of Nigeria, which has long advocated digital transactions to reduce leakages and improve financial oversight. Industry observers note that electronic systems strengthen audit trails, enable real-time revenue tracking and reduce opportunities for diversion or under-reporting.
International aviation governance standards promoted by bodies such as the International Civil Aviation Organization also emphasise financial transparency and sound revenue management. Analysts say FAAN’s early compliance could serve as a reference point for other revenue-generating agencies as enforcement tightens nationwide.
With the February 29 deadline approaching, attention is expected to shift to how consistently the policy is implemented across federal institutions. For FAAN, the transition marks a decisive step in aligning airport operations with national financial reforms and strengthening accountability within Nigeria’s aviation ecosystem.
