FAAN Adopts Hybrid Payment System for Airport Tolls After Cashless Rollout Triggers Gridlock

The Managing Director of the Federal Airports Authority of Nigeria (FAAN), Olubunmi Kuku, has confirmed that the Federal Government has directed the agency to temporarily revert to a hybrid payment system at airport toll gates following traffic gridlock triggered by the recent implementation of a cashless policy at major airports.

Speaking during a media briefing with aviation journalists in Lagos, Kuku explained that the decision was taken after the directive of President Bola Ahmed Tinubu, who intervened to ensure that airport passengers were not inconvenienced or forced to miss flights due to congestion caused by the new system.

Kuku disclosed that although the cashless payment initiative was not cancelled, the President asked aviation authorities to refine the system and improve its implementation before enforcing it fully.

“You heard the Honourable Minister yesterday following the Federal Executive Council meeting where Mr. President asked us not necessarily to suspend the policy but to improve the process before rolling it out completely,” she said.

The FAAN chief described the directive as a “major win” for both FAAN and the Federal Ministry of Aviation and Aerospace Development because it allows the agency more time to strengthen the technology and increase user adoption.

She explained that the original plan was to fully implement the cashless policy from March 1, but the rollout created heavy traffic congestion around airport access roads, particularly at the Murtala Muhammed International Airport in Lagos.

“The President saw the traffic gridlock and understood the peculiarities of our environment. He directed us to revert to a hybrid approach that accommodates both card and cash payments while we refine the system,” she added.

Kuku noted that FAAN had been preparing the public for the policy for several months before its enforcement. The awareness campaign began in October 2025, supported by the National Orientation Agency, which publicised the initiative through its social media platforms and community engagement programmes.

The policy formed part of the Federal Government’s wider effort to modernise airport operations and eliminate revenue leakages at toll gates through automated payment systems. Despite the challenges encountered during the rollout, Kuku said the system recorded significant early success.

“From October to early March, we registered more than 100,000 users on the platform. Interestingly, about 60,000 of those registrations happened in just the last three days before enforcement,” she revealed.
She also noted that the technology performed efficiently, achieving approximately 99 per cent success in card transactions.

Under the revised arrangement, airport users can continue paying toll charges either with cash or through electronic options such as cards and e-tags while FAAN strengthens the infrastructure and expands user adoption.

According to Kuku, the hybrid system will allow more time for passenger education and private sector participation in refining the technology. “We want to ensure that the technology works perfectly, that users are properly enlightened, and that people have multiple options – whether cards, e-tags or other digital platforms,” she said.

Industry stakeholders say such systems are already standard at many international airports and highway toll systems globally, where automated electronic payments are used to improve efficiency and accountability.

For instance, airports in the United States, Europe and parts of Asia rely heavily on electronic tolling and automated parking systems to reduce manual cash handling and minimise financial leakages.

Kuku explained that the gridlock experienced in Lagos was partly due to the location of the airport toll gates and the diverse categories of road users in the area. Unlike some international airports with controlled access roads, Lagos airport corridors serve a wide range of commuters beyond airline passengers.

“The location of the toll gates is not ideal because the roads are used not only by airport passengers but also by workers, residents and commuters travelling to areas such as Ikeja and neighbouring districts,” she said.

She added that many of these commuters were first-time users who had not registered for the electronic system, thereby causing delays at the toll gates. However, she noted that the situation improved at the Nnamdi Azikiwe International Airport in Abuja after the first few days of enforcement.

“By the third day of enforcement in Abuja, the level of gridlock had already reduced significantly,” she said.

The FAAN managing director stressed that the primary goal of the cashless policy remains the elimination of revenue leakages and the promotion of transparency in airport toll collections.

Nigeria’s airports generate significant revenue from toll gates, parking facilities, concessions and other services, but cash-based collection systems have historically been vulnerable to inefficiencies and revenue diversion.

“The purpose of the Federal Government directive was to block leakages and ensure that what belongs to the government actually goes to the government,” Kuku explained.

She assured that even during the temporary return to hybrid payments, FAAN would introduce stricter monitoring mechanisms and digital controls to ensure accountability.

Responding to questions on whether FAAN conducted a pilot phase before implementing the policy, Kuku admitted that time constraints limited the scope of testing. “We probably did not have enough time for a full pilot stage because of the directive we received,” she said.

However, she described the current period as an extended pilot phase that will allow FAAN to study operational challenges, incorporate feedback from stakeholders and refine the system.

“We are learning from the challenges we experienced, especially the gridlock. This additional time will help us improve change management, public enlightenment and user onboarding before the full transition,” she added.

The cashless toll system forms part of Nigeria’s wider digital transformation strategy across the aviation sector. Under reforms being pursued by the Federal Government, agencies such as FAAN are introducing automation, electronic payments and data-driven systems aimed at improving efficiency, transparency and passenger experience at the country’s airports.

Aviation analysts say that when properly implemented, automated toll systems can significantly reduce congestion, improve revenue collection and align Nigeria’s airports with global best practices.

For now, however, FAAN says the priority is ensuring that travellers can access airports without disruption while the agency fine-tunes the technology and expands adoption of the cashless platform.

Kuku concluded: “This is not a cancellation of the cashless initiative. It is simply an opportunity to refine the process, onboard more users and implement it properly so that passengers have a seamless experience.”