FAAN bans cash transactions from February 29
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The Federal Airports Authority of Nigeria has announced the cessation of all cash transactions across its operations nationwide, in compliance with the Federal Government’s cashless policy.
In an internal memo signed by the Managing Director and Chief Executive, Mrs Olubunmi Kuku, and obtained by our correspondent on Tuesday, the agency directed that all cash collections in the conduct of FAAN’s official businesses must stop with effect from 29 February 2026.
The directive follows the approval by the Federal Executive Council for government agencies to fully transition to a cashless system.
In an earlier correspondence dated 24 November, forwarded to government agencies by the Accountant-General of the Federation, Shamseldeen Ogunjimi, the government had ordered the cessation of cash payments across its dealings, lamenting that agencies of government in the past have circumvented the process, a development the government is frowning at.
The Accountant-General’s Treasury circular partly reads: “Regrettably, persistent violations of this regulation by MDAs and parties in government transactions are being noticed. This trend is unacceptable, as physical cash collection negates government policies and extant regulations, as well as weakens the integrity of Federal Government e-collection and e-payment systems.
“In view of the above, it is hereby directed that collections and/or acceptance of physical cash (in Naira or other currencies) for all revenues due to the Federal Government are strictly prohibited. All revenue collections, for and on behalf of the Federal Government, must be made via electronic processing.”
In adherence, Kuku said, “Further to the approval on cessation of cash collections transactions by the Federal Executive Council, it has become expedient that FAAN complies strictly with the policy of cashless economy by conducting all its financial and business transactions through a cashless system,” the memo stated.
According to the circular, all directors have been mandated to take immediate steps to ensure full compliance across departments and airport formations.
“Accordingly, a directive is hereby given that all cash collections or transactions in the conduct of FAAN’s official businesses MUST STOP with effect from 29 February 2026,’ Kuku stated emphatically.
She added that alternative approved payment channels must be fully adopted before the deadline, warning that non-compliance would attract sanctions.
“Alternative approved payment channels should be fully adopted, and no cash transactions should be accepted beyond the stated deadline. Failure will attract stiff penalties,” the memo warned.
With this development, FAAN joins other federal agencies aligning their financial operations with the government’s broader digital payment and public finance reform agenda.
Observers believe that the enforcement of the new directive will block leakages in government revenue.
