The Federal Airports Authority of Nigeria (FAAN) has announced plans to raise tariffs for all service providers operating within its airports to enhance revenue generation. Alongside this, FAAN will phase out cash transactions in favor of a fully automated, contactless payment system.
Currently, 92% of FAAN’s revenue comes from aeronautical sources, with only 8% from non-aeronautical activities—a significant imbalance compared to global standards where non-aeronautical revenue often exceeds 40%. The authority views this shift as essential to modernize operations and diversify income streams.
Speaking at the Directorate of Commercial and Development Stakeholders Engagement Forum in Lagos, FAAN’s Director of Commercial and Business Development, Adebola Agunbiade, stated, “We aim to review tariffs in a way that balances affordability with our operational needs. Service providers will receive early notifications to plan accordingly.”
Agunbiade also highlighted ongoing efforts to restructure lease agreements, noting a thorough legal review and updated terms aimed at clarity and feasibility for stakeholders.
On payments, FAAN is introducing an airport card system enabling seamless online, tap-and-go transactions at all payment points. “This automation will simplify processes, increase transparency, and improve revenue collection,” she said, revealing that below-the-line revenue alone reached ₦2 billion last year—an opportunity for investors.
FAAN’s Managing Director, Olubunmi Kuku, emphasized the benefits of automation for tracking payments and confirmed pilots have begun in Lagos, with plans to expand across all airports. Infrastructure upgrades include new ECR devices, automated parking, and tollgate systems, all designed to enhance accountability and passenger experience.
Kuku also warned that licenses would be revoked for car hire services and Bureau de Change operators involved in touting. Additionally, FAAN is addressing congestion around Lagos airport by removing unauthorized tanker trucks deemed security risks, pledging decisive action to restore order.
“We cannot tolerate unorganized business activities that compromise security and the airport environment,” Kuku said.
