President Bola Ahmed Tinubu has ordered the immediate suspension of the recently introduced cashless payment system at Nigerian airports following widespread complaints that its implementation caused severe traffic congestion and hardship for travellers, particularly around major airport entry points.
The directive was disclosed by the Minister of Aviation and Aerospace Development, Festus Keyamo, while briefing journalists at the State House in Abuja after the Federal Executive Council meeting presided over by the President. The decision comes less than a week after the Federal Airports Authority of Nigeria introduced the cashless system at toll gates and payment points as part of efforts to eliminate corruption and enhance government revenue collection.
Keyamo explained that the initiative was designed to replace a decades-long practice in which operators collected cash payments directly from motorists at toll gates, parking facilities and other airport access points nationwide. He stated, “The first one has to do with the present cashless system we introduced at our toll gates across the country in order to eliminate corruption and optimise revenue for the Federal Government.”
“You recall that this practice had gone on for more than 50 years where operators of the toll gates collect cash from motorists at points of collection across the country, mostly at toll gates and other points like parking lots.”
According to the minister, reports quickly emerged that the new payment arrangement created significant traffic build-up, especially at airports in Lagos and Abuja, leading to long queues that prevented passengers from arriving at terminals on time.
He said the President became concerned after learning that many travellers were missing scheduled flights as a result of delays caused by the system. “Mr President was very concerned about the welfare of Nigerians and the fact that most Nigerians were losing their flights, missing their flights.”
“So Mr President, out of empathy, directed today that we should suspend the present system because it creates a lot of gridlock and Nigerians are suffering as a result of it,” Keyamo said.
The minister explained that the President instructed the aviation ministry and FAAN to temporarily revert to the previous payment arrangement while officials work on improving the electronic system to prevent future congestion.
He noted that the government would immediately implement a hybrid payment structure that allows both cash payments and the continued use of prepaid FAAN cards already purchased by motorists. “For those who have bought FAAN cards before, we can do a hybrid system whereby we can collect cash temporarily and, of course, use the cards that they have collected temporarily for now,” he said.
Keyamo added that the Federal Government would engage private sector partners to design a more efficient electronic payment platform capable of eliminating cash transactions without disrupting traffic flow at airport entrances. He said the President directed that the review process be completed quickly to restore smooth access to airport facilities.
While reaffirming the administration’s commitment to modernising revenue collection, the minister stressed that any future electronic system must function efficiently. “To the extent that it will not create the gridlock that we are having right now,” he said.
He further revealed that private operators could be allowed to manage the electronic payment infrastructure and collect revenue on behalf of the Federal Government if necessary. “If we have to pay commission, we have to pay commission, but we will bring in private sector participants to help us devise a much more efficient payment system,” Keyamo said.
Keyamo emphasised that suspending the policy does not signal a permanent return to cash payments but represents a temporary intervention aimed at easing the hardship experienced by airport users.
“The major reason why Mr President took this decision is to eliminate the present gridlock we are experiencing, especially both at the Lagos and the Abuja toll gates leading to the airport,” he said.
He added that further consultations with FAAN would continue and additional briefings would be provided as work progresses toward implementing a seamless and efficient payment solution.
Speaking on additional aviation approvals, Keyamo disclosed that the Federal Executive Council also approved the re-scoping and continuation of the long-delayed Abuja Second Runway project at the Nnamdi Azikiwe International Airport.
According to him, the approval followed a memo presented to the Council seeking to revive the long-standing project, which had stalled despite being awarded by a previous administration. He explained that several challenges delayed execution, including foreign exchange volatility that significantly altered the project’s initial cost projections.
“Remember that the construction had four issues actually that affected the project. One of them was the foreign exchange volatility that came up between when it was originally awarded by the previous government and of course this government. That volatility affected the pricing of the project,” he said.
He added that currency fluctuations also affected compensation payments to landowners for economic trees and other encumbrances located within the project corridor, necessitating adjustments to the project scope and financial estimates.
Keyamo further disclosed that new technical requirements identified by aviation authorities and project consultants also required redesign and expansion of certain components. “These include the extension of the runway itself, additional taxiways and apron works that were not captured in the original design that we inherited as a government,” he said.
As part of the restructuring, the government approved the re-award of four major components, including construction of the runway, taxiways and connecting links, perimeter fencing with security gates, internal airport roads and dedicated crash roads for emergency response operations.
The approvals also cover procurement and installation of essential technical infrastructure needed for safe runway operations, including airfield lighting systems, navigational aids, communication equipment and meteorological facilities.
In addition, the Council approved the development of dedicated power infrastructure for the project, including construction of a power station and switchyard to guarantee stable electricity supply to the runway complex.
The final component approved involves procurement of operational vehicles, complementary equipment and spare parts required to support both construction activities and the eventual operation of the second runway.
Keyamo said the approvals represent a significant step toward completing the long-awaited project, noting that President Tinubu “graciously approved these four aspects of the project” as part of ongoing efforts to strengthen Nigeria’s aviation infrastructure and expand airport operational capacity.
