The Federal Airports Authority of Nigeria (FAAN) has banned all physical cash collections across its operations, positioning the aviation sector among the first to fully implement the Federal Government’s reinforced Cashless Policy.
In an internal memo dated 3 February 2026, FAAN’s Managing Director/Chief Executive, Olubunmi Kuku, directed all directorates to cease the acceptance of cash payments.
Departments have been given until February 29, 2026, to completely phase out physical cash transactions in all official dealings.
Kuku warned that non-compliance would attract stiff penalties under the strengthened Cashless Policy framework, noting that the directive aligns with broader fiscal reforms approved by the Federal Executive Council.
The move follows a recent Treasury Circular from the Office of the Accountant-General of the Federation, which expressed concern over the continued acceptance of cash by various Ministries, Departments, and Agencies (MDAs).
The circular described the practice as a violation of the Treasury Single Account (TSA) and e-payment systems, cautioning that such breaches weaken federal revenue collection and undermine financial transparency.
Under the new enforcement measures, all federal revenue transactions must be processed electronically.
Agencies are prohibited from accepting physical cash payments in naira or foreign currencies and are required to display public notices informing citizens that cash payments are no longer valid.
The circular places direct responsibility on agency leadership, stating that Accounting Officers will be held personally accountable for any violations within their organizations.
Directors of Finance and Internal Audit Units have also been mandated to ensure strict compliance and monitoring.
To support the transition, agencies currently handling cash transactions have been granted 45 days to deploy functional Point of Sale (PoS) terminals or other approved electronic platforms at all revenue points.
According to the circular, electronic systems enhance transparency by creating verifiable records that reduce opportunities for diversion or under-reporting of funds, while centralised monitoring under the TSA strengthens oversight.
Reaffirming FAAN’s commitment, Kuku said the authority would ensure that all financial transactions are conducted strictly through approved electronic systems, a significant shift for the aviation sector, which handles large volumes of passenger service charges, concession fees, and regulatory payments daily.
(The Sun)
