FAAN to hike airport service tariffs, phase out cash payments for full digital operations.
Agency targets better revenue, warns defaulters, and rolls out reforms for modern, safer airports.
The Federal Airports Authority of Nigeria (FAAN) has announced plans to increase tariffs for all service providers operating at its airports as part of a broader strategy to enhance revenue and modernize operations.
This announcement was made during the Directorate of Commercial and Development Stakeholders Engagement Forum held on Monday in Lagos. FAAN is also moving to eliminate all cash transactions at its facilities, transitioning to a fully automated and contactless payment system.
According to the Director of Commercial and Business Development, Adebola Agunbiade, the authority currently generates about 92% of its income from aeronautical sources, while only 8% comes from non-aeronautical avenues. This revenue split, she said, falls significantly short of international benchmarks, where non-aeronautical income often contributes over 40% of total airport earnings.
“We need to review our tariffs, not to burden operators, but to help us stay financially afloat and meet our obligations,” Agunbiade explained. She assured stakeholders that FAAN would give ample notice before the new rates take effect. “We’ve already begun the process, and official notices will soon be sent out. But I want to stress that no recently adjusted tariffs will be touched again immediately,” she added.
Agunbiade also addressed ongoing challenges with lease agreements. She noted that many service providers often misunderstand or overlook the terms and conditions of their leases, leading to complications. “We’ve reviewed the lease documents in collaboration with our legal team and introduced clearer, updated terms. New applicants and those coming for renewals will notice these changes, which are designed to be practical and enforceable.”
As part of its digital transformation, FAAN is rolling out a tap-and-go card system to replace manual cash payments. “Soon, all payments will be processed online through our airport card system. It’s seamless, easy to use, and will help streamline our business operations,” she said.
Agunbiade revealed that FAAN earned N2 billion in 2024 from “below-the-line” revenue streams sources outside traditional aeronautical services. She described this as a huge investment opportunity for the private sector. “We have several platforms that are yet to be fully explored. Investors can tap into these to drive value while also boosting our revenue.”
She also said FAAN is investing in incentive programs for its staff as part of internal reforms to boost morale and efficiency.
On her part, FAAN’s Managing Director and CEO, Olubunmi Kuku, emphasized the urgency of automation, especially in managing service provider payments and applications. “Automation provides transparency and speed. We’re already piloting this in Lagos and plan to extend it to other airports,” she noted.
She added that Electronic Cash Register (ECR) systems would be deployed across terminal payment points, with upgrades also planned for parking systems and tollgates. “These upgrades are aimed at improving accountability and giving passengers confidence that their payments are being reinvested into airport infrastructure,” Kuku said.
However, Kuku also issued a strong warning to service providers abusing their access. She stated that FAAN will not hesitate to revoke the licenses of car hire operators and Bureau de Change agents found engaging in touting or other unauthorized activities.
She also spoke about decongesting airport roads, particularly in Lagos, where tankers and makeshift businesses have taken over access routes. “We’ve been instructed to clear these tankers. Many of them have no business being there. They pose both a security threat and an eyesore for the airport environment,” she declared.
“These measures are necessary. We want passengers and stakeholders to experience a more secure, efficient, and modern airport system,” Kuku concluded.
