By Ayo Susan
The Federal Airports Authority of Nigeria (FAAN) will introduce a hybrid payment arrangement at airport access gates nationwide beginning March 13, 2026, allowing motorists to pay either in cash or through electronic channels.
The recent decision follows the suspension of the earlier fully cashless access gate payment system after the policy triggered traffic congestion at several airports.
President Bola Ahmed Tinubu directed the suspension of the cashless system following operational disruptions.
The Honourable Minister of Aviation and Aerospace Development, Barr. Festus Keyamo, subsequently instructed the FAAN to temporarily revert to the previous payment structure while reviewing implementation challenges.
According to Tunde Moshood, Special Adviser on Media and Communications to the Minister of Aviation and Aerospace Development, the ministry is working toward a long-term digital solution.
“The ministry has resolved to engage concessionaires in order to introduce a fully automated or electronic system at access gates at the airport,” Moshood said.
DECISION HIGHLIGHT
The hybrid payment decision represents a temporary operational compromise between the government’s push for digital revenue collection and the logistical realities of airport traffic management.
While the policy signals continued commitment to eventual automation, the immediate reversal underscores the risks associated with rapid digital transitions without adequate infrastructure readiness.
DECISION MEMO
The FAAN’s shift to a hybrid payment structure illustrates the practical constraints that often accompany public sector digital reforms.
The earlier attempt to enforce a fully cashless access gate payment system was designed to improve transparency, reduce cash handling and strengthen revenue accountability within the airport environment.
However, the policy’s initial rollout revealed operational weaknesses that disrupted airport traffic flows.
Motorists experienced congestion at airport entry points as users struggled with payment processing delays and unfamiliar electronic payment procedures.
The resulting gridlock prompted presidential intervention, with Tinubu ordering the immediate suspension of the cashless system pending operational review.
Following the directive, Keyamo convened a meeting with officials of the Federal Airports Authority of Nigeria and senior ministry staff to assess the first phase of implementation.
Keyamo subsequently authorised the restoration of a hybrid payment structure allowing both cash and electronic payment options.
Moshood explained that motorists who already possess the FAAN Go Cashless Card can continue to use the system, while other electronic channels such as point of sale terminals will remain operational.
Moshood also emphasised that the hybrid system is temporary while the ministry works toward a fully automated digital solution in collaboration with private sector concessionaires.
Keyamo had earlier indicated that the initial implementation period would be reviewed to address operational weaknesses and eliminate opportunities for corruption in revenue collection.
The episode highlights a recurring challenge within Nigeria’s infrastructure modernisation agenda, where digital policy ambitions sometimes outpace operational readiness.
While automation promises stronger transparency and revenue control, implementation failures can undermine user confidence and disrupt service delivery.
The hybrid system therefore represents a pragmatic policy adjustment aimed at stabilising airport operations while maintaining the longer term objective of full digital payment integration.
DATA BOX
New Payment System: Hybrid cash and electronic payment
Implementation Date: March 13, 2026
Implementing Authority: Federal Airports Authority of Nigeria
Payment Options:
Cash payments
FAAN Go Cashless Card
Point of Sale terminals
Other approved digital channels
Policy Trigger:
Traffic congestion following initial cashless rollout
Long Term Objective:
Fully automated electronic access gate payment system
WHO WINS / WHO LOSES
Winners
Motorists gain flexibility through the restoration of cash payment options while electronic payment infrastructure improves.
Airport users experience reduced congestion compared with the initial rollout of the fully cashless system.
Losers
Digital payment operators linked to the cashless system may see slower adoption rates following the policy adjustment.
Airport revenue monitoring systems may temporarily revert to less efficient cash management processes.
POLICY SIGNALS
The decision signals a cautious recalibration of Nigeria’s public sector digital transformation strategy.
While the government remains committed to digital payment systems, the adjustment suggests a growing recognition that infrastructure readiness and user adoption must precede full automation.
The move also reflects an effort to maintain operational efficiency while pursuing longer term transparency goals.
INVESTOR SIGNAL
For investors and technology providers, the development highlights ongoing opportunities within airport infrastructure technology, payment systems integration and transport automation platforms.
The ministry’s plan to work with concessionaires indicates potential private sector participation in future digital infrastructure deployment.
RISK RADAR
Three operational risks remain evident.
First is implementation risk, where rapid digital policy rollouts may encounter logistical bottlenecks.
Second is user adoption risk, particularly among motorists unfamiliar with electronic payment platforms.
Third is revenue control risk, as hybrid payment environments require strong monitoring systems to prevent leakages.
The hybrid payment decision ultimately reflects the government’s attempt to stabilise airport operations while continuing its broader transition toward digital revenue collection systems within Nigeria’s aviation sector.
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