FAAN Prohibits Cash Transactions in Nigerian Airports.

The Federal Airports Authority of Nigeria (FAAN) has prohibited all physical cash collections throughout its operations, making the aviation industry one of the first to fully implement the federal government’s strengthened Cashless Policy.

The Managing Director/Chief Executive of FAAN, Olubunmi Kuku, issued an internal memo on February 3, 2026, ordering all directorates to stop accepting cash immediately. The directive gives departments until February 29, 2026 to completely phase out physical cash transactions in all official businesses.

Kuku stated that failure to comply will result in stiff penalties under the reinforced Cashless Policy regime, and that the move is consistent with broader fiscal reforms approved by the Federal Executive Council.

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The directive comes after a recent Treasury Circular from the Office of the Accountant-General of the Federation, which expressed “great concern” about the continued acceptance of cash at various Ministries, Departments, and Agencies (MDAs). The circular described the practice as a clear violation of the Treasury Single Account (TSA) and e-payment frameworks, warning that such violations undermine federal revenue collection systems and jeopardize financial integrity.

Under the new enforcement measures, all federal revenue transactions must be completed electronically. Agencies are now prohibited from accepting physical cash, whether in naira or foreign currency, and must post public notices informing citizens that cash payments are no longer valid.

The circular places direct accountability on agency leadership, stating that Accounting Officers will be personally liable for any breaches within their organizations. The directors of finance and internal audit units have also been tasked with ensuring complete compliance and monitoring.

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To facilitate the transition, agencies currently handling cash have been given 45 days to deploy functional Point of Sale (PoS) terminals or other approved electronic platforms at all revenue points.
“Electronic systems create transparent records that reduce opportunities for diversion or under-reporting,” the circular noted, adding that centralised monitoring under the TSA strengthens oversight.

Kuku reaffirmed the authority’s commitment to conducting all financial transactions through approved electronic systems, signaling a significant shift in the aviation ecosystem, which processes large amounts of passenger service charges, concession fees, and regulatory payments every day.