FAAN bans cash transactions across airports in Nigeria

‎FAAN bans cash transactions across airports in Nigeria

The Federal Airports Authority of Nigeria (FAAN) has banned all physical cash collections across its operations, making the aviation sector one of the first to fully implement the federal government’s reinforced Cashless Policy.

‎In an internal memo dated February 3, 2026, the Managing Director/Chief Executive, Olubunmi Kuku, ordered all directorates to cease the acceptance of cash immediately.

The directive gives departments until February 29, 2026, to completely phase out physical cash transactions from all official businesses.

Kuku said the failure to comply will attract stiff penalties under the reinforced Cashless Policy regime, saying that the move aligns with broader fiscal reforms approved by the Federal Executive Council.

The directive follows a recent Treasury Circular from the Office of the Accountant-General of the Federation, which expressed “great concern” over there continued acceptance of cash at various Ministries, Departments, and Agencies (MDAs).

The circular described the practice as a direct violation of the Treasury Single Account (TSA) and e-payment frameworks, warning that such breaches weaken federal revenue collection systems and compromise financial integrity.

Under the new enforcement measures, all federal revenue transactions must be processed electronically.

Agencies are now prohibited from accepting physical cash, whether in naira or foreign currency, and are mandated to display public notices informing citizens that cash payments are no longer valid.

The circular places direct accountability on agency leadership, stating that Accounting Officers will be held personally responsible for any breaches within their organisations.

Directors of Finance and Internal Audit Units have also been tasked with ensuring full compliance and monitoring.

‎To facilitate the transition, agencies currently handling cash have been given 45 days to deploy functional Point of Sale (PoS) terminals or other approved electronic platforms at all revenue points.

“Electronic systems create transparent records that reduce opportunities for diversion or under-reporting,” the circular noted, adding that centralised monitoring under the TSA strengthens oversight.

Kuku reaffirmed the authority’s commitment to conducting all financial transactions through approved electronic systems, signalling a major shift in the aviation ecosystem, which processes high volumes of passenger service charges, concession fees, and regulatory payments daily.