• FAAN plans to increase tariffs for all airport service providers, assuring early notice to businesses ahead of implementation.
• Cash transactions will be phased out, as the authority transitions to a fully automated, contactless payment system using airport cards.
• Crackdown on touting announced, with FAAN warning that licences of car hire and Bureau de Change operators involved in illegal activities will be revoked.

The Federal Airports Authority of Nigeria (FAAN) has unveiled plans to raise tariffs for all service providers operating at its airports, citing the need to improve revenue generation and modernise its operations.

As part of the reforms, FAAN also announced that it will gradually eliminate cash transactions at its payment points, moving towards a fully automated, contactless payment system.

Speaking at the Directorate of Commercial and Development Stakeholders Engagement Forum held Monday in Lagos, FAAN’s Director of Commercial and Business Development, Adebola Agunbiade, explained the rationale behind the decision.

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“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,” she said.

Agunbiade gave assurances that stakeholders would be notified ahead of any adjustment, saying, “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.”

She added, “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.”

Touching on lease agreements, Agunbiade noted recurring issues and blamed them on the lack of proper review by partners.

“We’ve had a lot of issues around this, and I think it’s mostly because most times when we give out these agreements, people don’t read them to see what the terms are,” she said.

According to her, FAAN has worked with its legal team to revise the agreements: “We’ve come up with different terms. So if anyone is coming for a renewal or for an application, you will see that some of the terms in the agreements have changed.”

Addressing the transition to a cashless payment system, she said, “All payments will soon be made online using our cards. It is an airport card. You tap and go. It is a very seamless and straightforward process that will ease the business and payment structure for all our payment systems.”

Agunbiade pointed out that non-aeronautical revenue remains significantly low in Nigeria compared to global standards. She disclosed that 92 per cent of FAAN’s revenue currently comes from aeronautical activities, while only 8 per cent is generated from non-aeronautical sources. In contrast, non-aeronautical income exceeds 40 per cent in many developed countries.

She also revealed that FAAN made over N2 billion from below-the-line platforms last year and described it as “a big opportunity for investors.”

FAAN’s Managing Director and CEO, Olubunmi Kuku, stressed the importance of automation in streamlining payment systems and addressing complaints from stakeholders.

“Automation makes it easier for you to track your payment. We’re going cashless and contactless payment. So it is easier and faster. People can use these cards for payment points across our terminals,” she said.

Kuku confirmed that the contactless system had already been piloted in Lagos and would soon be extended to other airports.

“There are a lot of investments that have gone into our infrastructure upgrades and automation, specifically,” she said. “We will be using ECR devices for all of the payments at the terminals.”

She added that FAAN was also upgrading parking systems and tollgate facilities to promote transparency and accountability.

On airport security and orderliness, Kuku warned that FAAN would clamp down on car hire and Bureau de Change operators who disguise themselves to engage in touting.

She also expressed dissatisfaction with the congestion on airport access roads, particularly the presence of parked tankers.

“This is not the scene I want to see. We have received orders to take out those tankers. We will be taking drastic measures,” she warned.

“A lot of the tankers there do not operate in our environment. They will have to go. They are a security risk, and the scene is obnoxious for an airport environment.”

FAAN says these reforms mark a critical step in overhauling its operations and rebalancing its revenue structure to align with global aviation standards.

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