President Tinubu Suspends Airports’ Cashless Policy
President Bola Ahmed Tinubu has ordered the immediate suspension of the recently introduced cashless payment system at Nigerian airports following widespread complaints of severe traffic congestion and hardship for travellers.
The Minister of Aviation and Aerospace Development, Festus Keyamo, disclosed this while briefing journalists at the State House, Abuja, after the Federal Executive Council (FEC) meeting presided over by the President.
According to Keyamo, the directive followed reports that the newly implemented system at airport toll gates and other payment points had caused long queues, leading to passengers missing their flights, particularly in Lagos and Abuja.
The cashless system was introduced by the Federal Airports Authority of Nigeria (FAAN) as part of efforts to eliminate corruption and improve revenue collection for the Federal Government. It replaced a decades-long practice in which toll gate operators collected cash payments directly from motorists.
“The present cashless system was introduced at toll gates across the country to eliminate corruption and optimise revenue for the Federal Government,” Keyamo said. “This practice had gone on for more than 50 years, where operators collected cash at toll gates and parking lots.”
However, less than a week after its rollout, the system reportedly created significant congestion around airport access roads, particularly in Lagos and Abuja.
Keyamo explained that President Tinubu became concerned after receiving reports that travellers were missing flights due to the gridlock.
“Mr President was very concerned about the welfare of Nigerians and the fact that many were losing their flights,” he said. “Out of empathy, he directed today that we suspend the present system because it is creating gridlock and Nigerians are suffering as a result.”
The President has directed the ministry and FAAN to temporarily revert to the previous payment arrangement while a more efficient electronic solution is developed.
Keyamo stated that a hybrid system would be implemented in the interim, allowing cash payments alongside the continued use of prepaid FAAN cards already purchased by motorists.
“For those who have bought FAAN cards, we can operate a hybrid system—collect cash temporarily while allowing the use of existing cards,” he said.
The Federal Government plans to collaborate with private sector partners to develop a more efficient electronic payment platform that eliminates cash transactions without causing delays.
Keyamo noted that the President remains committed to a fully electronic revenue collection system, provided it does not create further congestion.
“To the extent that it will not create the gridlock we are experiencing right now,” he added.
He further revealed that private operators may be engaged to manage the electronic payment system and collect revenues on behalf of the government, even if it involves paying commissions.
“If we have to pay commission, we will do so. We will bring in private sector participants to help us devise a much more efficient payment system,” the minister said.
Keyamo stressed that the suspension should not be interpreted as a permanent return to cash transactions, but rather as a temporary measure aimed at alleviating hardship and restoring efficiency at airport entry points.
“The major reason Mr President took this decision is to eliminate the present gridlock we are experiencing, especially at the Lagos and Abuja toll gates leading to the airport,” he said.
The ministry is expected to consult further with FAAN and provide additional updates as work progresses toward implementing a seamless and efficient payment solution for airport users.