The Federal Airports Authority of Nigeria (FAAN) has confirmed a temporary pivot to a hybrid payment system for toll gates, allowing motorists to use either cash or electronic cards.
This adjustment follows a direct intervention by President Bola Tinubu, who ordered refinements to the originally planned full cashless policy after its rollout triggered severe gridlocks and public outcry.
FAAN Managing Director Olubunmi Kuku addressed aviation reporters at the General Aviation Terminal in Lagos on Thursday, emphasizing that the president’s directive was not a complete reversal but a strategic pause to iron out implementation flaws.
“The President saw the traffic gridlock that we were having as we were rolling out the cashless policy and asked us to revert to the status quo or the hybrid approach. That’s what we’re doing. So, this is a win for the industry. He’s actually given us some time to go back and refine,” Kuku stated, highlighting the move as a collaborative victory for the aviation sector.
The policy, dubbed “Go Cashless,” was initially set to eliminate all cash transactions at toll points starting March 1, 2026, requiring drivers to obtain dedicated prepaid cards or use ATM cards for payments. Aimed at curbing revenue leakages and aligning with federal fiscal reforms, the initiative was backed by the Central Bank of Nigeria and implemented in partnership with payment platform Paystack.
FAAN had launched awareness campaigns as early as October 2024, but Kuku acknowledged that many road users were caught off guard by the strict enforcement deadline, leading to bottlenecks at key entry points.
The rollout’s immediate aftermath painted a picture of chaos at Murtala Muhammed International Airport in Lagos and Nnamdi Azikiwe International Airport in Abuja. Motorists faced hours-long delays due to payment processing issues and heavy vehicular buildup, with some passengers missing flights as a result.
Local businesses along airport corridors reported sluggish patronage, as the congestion brought movement to a near standstill. “The traffic horror accompanying the cashless rollout forced some passengers to miss scheduled flights,” sources familiar with the situation noted, underscoring the human cost of the policy’s teething problems.
Despite the setbacks, FAAN reported a significant uptick in user adoption. By March 3, over 100,000 motorists had enrolled, with more than 60,000 registrations occurring in the final three days alone. This surge built on an earlier 30,000 users onboarded during the pre-launch sensitization phase, bringing the total to around 70,000 active cards by early implementation. Kuku attributed the rapid enrollment to heightened awareness amid the gridlocks but stressed the need for further improvements.
Looking ahead, Kuku indicated that the full cashless transition would resume once key issues are addressed. “We first have to make sure that the technology works. Two is to make sure that a lot of our users are more enlightened. So I’m sure that in the next couple of days, once we’ve sort of gone down on the gridlock that we had over the last few days, we’ll look at it again,” she explained.
Even during this hybrid interim, FAAN vows to tighten controls on revenue collection. “We will go back to the drawing board and fine-tune the process such that even when you continue to collect cash, there is at least a way before you do a full transition to also minimize the leakages that we see now,” Kuku added, reaffirming the authority’s commitment to transparency and efficiency.
The presidential suspension, announced shortly after the March 1 enforcement, came amid growing calls from commuters and stakeholders for relief. Tinubu’s administration has positioned the policy as part of broader efforts to modernize government revenue systems, but the episode highlights the challenges of digital transitions in a cash-reliant economy.
FAAN officials have commended the president’s intervention, describing it as a pragmatic step that balances innovation with public convenience.
As Nigeria’s aviation sector navigates this shift, industry watchers anticipate smoother operations in the coming weeks, provided the refinements address user education and technological reliability.
WHAT YOU SHOULD KNOW
FAAN has temporarily suspended its full cashless toll policy at Lagos and Abuja airports following President Tinubu’s directive, reverting to a hybrid system that allows both cash and card payments.
The original March 1 rollout caused severe traffic gridlock due to inadequate preparation and technology issues, prompting the president to intervene and prioritize smoother access over an immediate full digital transition.
FAAN now aims to refine the system—improving technology, user education, and revenue controls—before reintroducing a fully cashless model.
