FAAN to End All Cash Transactions Nationwide, Announces Implementation Date
- FAAN has announced a deadline for all cash transactions across its airport operations
- The directive follows approval by the Federal Executive Council for MDAs to adopt a fully cashless system
- The Accountant-General had earlier warned agencies against violating the government’s cashless policy
Oluwatobi Odeyinka is a business editor at Legit.ng, covering energy, the money market, technology and macroeconomic trends in Nigeria.
The Federal Airports Authority of Nigeria (FAAN) has directed the immediate end of all cash transactions across its operations nationwide as part of the Federal Government’s cashless policy.
Source: Getty Images
The directive was contained in an internal memo signed by FAAN’s Managing Director and Chief Executive Officer, Mrs Olubunmi Kuku, and obtained by our correspondent on Tuesday. The memo stated that all cash collections related to the agency’s official activities must cease on February 29, 2026.
As reported by PUNCH, FAAN stated that the decision follows approval by the Federal Executive Council (FEC) for Ministries, Departments and Agencies (MDAs) to fully transition to a cashless system in line with public finance reforms.
AGF directs discontinuation of cash transactions
Earlier, in a circular dated November 24 and issued by the Office of the Accountant-General of the Federation, the federal government directed MDAs to discontinue cash payments and collections.
The circular, signed by the AGF, Shamseldeen Ogunjimi, expressed concern over continued breaches of the cashless policy by some agencies.
The Treasury circular noted that the collection of physical cash undermines existing government regulations and weakens the integrity of federal e-collection and e-payment systems, Vanguard reported.
It warned that all revenues due to the federal government must be processed electronically, stressing that the acceptance of cash in naira or foreign currencies is strictly prohibited.
FAAN pledges compliance
Reaffirming FAAN’s position, Kuku said the agency would comply strictly with the approved policy. She directed all directors to ensure full implementation across departments and airport formations.
“Accordingly, a directive is hereby given that all cash collections or transactions in the conduct of FAAN’s official businesses must stop with effect from 29 February 2026,” the memo stated.
The circular further instructed that alternative approved payment channels must be fully adopted before the deadline. It added that any violation of the directive would attract sanctions.
With the move, FAAN joins other federal agencies aligning their financial operations with the government’s broader push for digital payments and improved transparency in revenue management. Industry observers say stricter enforcement of the policy could help reduce revenue leakages and strengthen accountability in public finance.
Source: Getty Images
FAAN revises cargo charge increase
Legit.ng earlier reported that FAAN has reduced its proposed increase in cargo port charges at the Murtala Muhammed International Airport (MMIA), Lagos, from N20 to N15 per kilogram.
The agency had initially proposed a rise from N7 to N20 per kilogram, while air cargo fees were to increase from N5 to N15 per kilogram.
However, the planned increases faced resistance from cargo agents, who warned that higher charges could hurt the cargo business and have wider implications for trade and related sectors across the country.
Source: Legit.ng
