The Federal Airports Authority of Nigeria (FAAN) has announced plans to increase service tariffs for operators at its airports as part of broader efforts to boost its revenue base.
The agency also revealed that it will soon phase out all forms of cash payments at airport facilities, transitioning fully to a digital, contactless payment system to improve transparency and efficiency.
Currently, 92% of FAAN’s revenue is generated from aeronautical sources, with just 8% from non-aeronautical services—a stark contrast to global best practices, where non-aeronautical income can exceed 40%. The new initiatives aim to modernize operations and realign revenue streams.
During the Commercial and Business Development Stakeholders Forum held Monday in Lagos, FAAN’s Director of Commercial and Business Development, Adebola Agunbiade, explained the reasons for the tariff review.
“We’re seeking a balance—ensuring the new tariffs are fair while enabling us to meet our financial obligations,” she said, adding that stakeholders would be notified well in advance of any changes.
Agunbiade also addressed challenges with lease agreements, pointing out that many users overlook critical terms. According to her, FAAN has worked with its legal team to revise these contracts, and updated terms will apply to renewals and new applications.
On digital payments, she announced the rollout of a new contactless “airport card” for seamless transactions. “We’re moving all payments online. Just tap and go,” she said, citing the N2 billion earned from digital revenue platforms in 2024 as proof of potential.
Agunbiade also noted that FAAN is investing in staff incentive programs and called on private investors to take advantage of emerging opportunities.
FAAN’s Managing Director/CEO, Olubunmi Kuku, echoed the need for automation to streamline operations, track payments, and ensure transparency. “We’re already piloting the system in Lagos and will expand it nationwide. ECR devices will be installed for all terminal payments,” she said.
Infrastructure upgrades also include improvements to parking systems and automated tollgates.
Kuku issued a stern warning to car hire operators and Bureau de Change vendors engaging in touting, stating that their licences will be revoked. She also promised to remove tankers congesting Lagos airport roads, citing safety and aesthetics as key concerns.
“Those tankers are not part of our operations and pose security risks. We’ll be taking firm steps to remove them and restore order,” she concluded.
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