Why We Banned Cash Payment, Plans Tariff Hike In Nigerian Airports- FAAN

The Federal Airports Authority of Nigeria has announced the reasons to ban cash transactions and plans to hike tariffs nationwide.
The Director of Commercial and Business Development, FAAN, Adebola Agunbiade, who made this disclosure while during an event in Lagos on Monday, 25 June, 2024
According to Agunbiade that 92 percent of its current revenue comes from aeronautical sources while only 8 percent is derived from non-aeronautical activities, a stark contrast to global standards, where non-aeronautical revenue accounts for over 40 percent in many developed countries.
She added that the move marks a critical step in modernising its operations and rebalancing its revenue structure.
“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 said adding that FAAN would notify service providers early enough before implementing the tariff increase.
“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.
“But we are reviewing our tariff, and we will also ensure that we notify you early enough so that you, as businesses, can plan towards it,” she said.
On her part, FAAN’s Managing Director and CEO, Olubunmi Kuku, lamented the numbers of calls and enquiries from service providers on payment renewals and applications.
“Automation makes it easier for you to track your payment. We’re going cashless and contactless in payments,” Kuku said.