The Federal Airports Authority of Nigeria (FAAN) has officially announced the implementation of a cashless payment system across all Nigerian airports, alongside plans to increase service tariffs nationwide.
The announcement was made on Monday by FAAN's Director of Commercial and Business Development, Adebola Agunbiade, during an event in Lagos.
Revenue Rebalancing Strategy
According to FAAN, the agency currently derives 92 percent of its revenue from aeronautical sources, while only 8 percent comes from non-aeronautical activities. This stands in stark contrast to global standards, where non-aeronautical revenue accounts for over 40 percent in many developed countries.
"We have to find the means to review our tariff in such a way that it's not too much on you but it's also helping us to pay our bills," Agunbiade stated, addressing concerns about the upcoming changes.
She assured stakeholders that FAAN would provide adequate notice before implementing any tariff increases, saying, "We have done it already; we will be putting out notices on it, but please rest assured that we will not be getting a review on a tariff that probably has been done too recently."
Cashless Operations
FAAN's Managing Director and CEO, Olubunmi Kuku, emphasized the benefits of the new cashless system, particularly in addressing the high volume of inquiries regarding payment renewals and applications.
"Automation makes it easier for you to track your payment. We're going cashless and contactless in payments," Kuku stated, highlighting the modernization efforts underway at the authority.
The move represents a significant step in FAAN's efforts to modernize its operations and align with international best practices in airport management and revenue generation.
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