The Federal Airports Authority of Nigeria (FAAN) has ordered an immediate halt to all cash transactions across its operations, marking a decisive shift in the enforcement of the federal government’s Cashless Policy.
In an internal memo dated February 3, 2026, FAAN’s Managing Director/Chief Executive, Mrs. Olubunmi Kuku, directed all directorates to cease physical cash collections, setting February 29, 2026 as the final deadline for full compliance. She warned that any breach of the directive would attract stiff penalties under the strengthened enforcement regime.
With the move, Nigeria’s aviation sector becomes one of the first major revenue-generating segments of government to fully operationalise the tightened no-cash framework.
Treasury Directive Sparks Enforcement Drive
FAAN’s action follows a Treasury Circular issued by the Office of the Accountant-General of the Federation titled “Enforcement of No Physical Cash Receipt Policy for All Federal Government Revenue Transactions”.
The circular referenced earlier directives underpinning the Treasury Single Account (TSA) framework and expressed “great concern” over continued physical cash collections by Ministries, Departments and Agencies (MDAs). It described such practices as violations of the established e-payment system and warned that persistent breaches undermine federal revenue integrity.
Under the renewed directive:
Acceptance of physical cash in naira or foreign currency is strictly prohibited for all federal revenue transactions.
All payments must be processed through approved electronic platforms.
Agencies are required to display public notices clearly stating that cash payments are no longer accepted.
The circular further places direct responsibility on Accounting Officers, warning that they will be held accountable for any infractions traced to their organisations.
Aviation Sector Moves Swiftly
FAAN’s compliance is significant given the scale of financial activity across Nigeria’s airports. Daily transactions include passenger service charges, concession fees, landing and parking charges, and various regulatory payments.
By eliminating physical cash handling, the authority aims to reduce financial leakages, strengthen audit trails and improve real-time revenue tracking across terminals nationwide.
Kuku linked the directive to Federal Executive Council approval and broader fiscal reform objectives, reaffirming FAAN’s commitment to conducting all financial transactions strictly through approved electronic systems.
The enforcement drive aligns with the Central Bank of Nigeria’s long-standing push for digital transactions as a tool to promote transparency, reduce corruption risks and modernise public finance management.
Compliance Measures and Sanctions
The Treasury Circular gave agencies currently handling cash a 45-day window to deploy functional Point of Sale (POS) terminals or other approved electronic payment solutions at all revenue points.
Directors of Finance and Internal Audit Units have been mandated to monitor implementation and ensure strict adherence. Non-compliance could trigger administrative sanctions or disciplinary action.
By elevating accountability to agency leadership, the federal government has signaled that tolerance for revenue breaches has narrowed significantly.
Boost for Transparency and Global Standards
Industry observers note that stricter enforcement of the Cashless Policy could significantly enhance financial transparency within Nigeria’s aviation sector.
Electronic systems generate verifiable records, improve reconciliation processes and reduce opportunities for diversion or under-reporting.
The strengthened framework also aligns with international best practices. Global aviation governance standards, including those encouraged by the International Civil Aviation Organisation (ICAO), emphasise financial accountability and transparent revenue management.
FAAN’s early compliance positions the aviation authority as a reference point within the federal system as attention shifts to other revenue-generating MDAs.
As the February 29 deadline approaches, the effectiveness of this renewed enforcement phase will be closely watched.
For Nigeria’s aviation industry, the message is clear: the era of cash at airport revenue points is officially over.