The Federal Airports Authority of Nigeria has announced a nationwide ban on all cash transactions across its operations, in line with the Federal Government’s cashless policy.

According to the directive, the new policy will take effect from February 29. This means all payments within FAAN’s facilities, including airport services and related transactions, will now be processed strictly through electronic channels.

The development is part of Nigeria’s broader push toward a cashless economy aimed at improving transparency, accountability and operational efficiency across public institutions.

With the ban on cash transactions, airport users, concessionaires, service providers and other stakeholders will be required to make payments through approved digital platforms. These may include bank transfers, point of sale terminals, online payment systems and other electronic methods.

FAAN oversees the management and operation of several airports across Nigeria, including major hubs such as Murtala Muhammed International Airport in Lagos and Nnamdi Azikiwe International Airport in Abuja. The new directive will apply to all airports under its control nationwide.

Industry observers say the move is expected to reduce revenue leakages, improve monitoring of transactions and align airport operations with modern financial standards. The cashless policy also supports efforts to limit the risks associated with handling large volumes of physical cash.

The Federal Government has in recent years intensified efforts to encourage electronic payments across ministries, departments and agencies. The transition is designed to strengthen financial oversight and promote a more digitized economy.

While many stakeholders have welcomed the development as a step toward greater transparency, some airport users have raised concerns about possible delays during the early phase of implementation. Experts, however, note that proper sensitization and infrastructure upgrades will be key to ensuring a smooth transition.

FAAN is expected to provide further guidance to airlines, concessionaires and airport visitors on the approved payment channels before the effective date.

The February 29 rollout gives stakeholders time to adjust and ensure they have access to functional digital payment options. Observers say the success of the FAAN cashless policy will depend largely on reliable internet connectivity and efficient payment systems across airport terminals.

As Nigeria continues to strengthen its cashless economy framework, the aviation sector is now joining other public institutions in fully embracing electronic transactions. The move marks a significant operational shift for one of the country’s most strategic sectors.