Tinubu Halts Airport Cashless Initiative

The Suspension of the Cashless Toll Payment System in Nigerian Airports

The Federal Executive Council (FEC) has made a significant decision to suspend the cashless toll payment system introduced by the Federal Airports Authority of Nigeria (FAAN) at major airports across the country. This move comes after widespread confusion, gridlock, and frustration among passengers and motorists who were affected by the sudden shift from cash-based to electronic payments.

On March 1, 2026, FAAN implemented a policy that barred cash payments at airport toll gates, requiring drivers to use either prepaid access cards or electronic payment methods. However, this change quickly led to chaos, with many travelers stranded for hours due to long queues and traffic congestion. The situation was particularly severe in Lagos and Abuja, where the toll gates became bottlenecks for airport access roads.

A Policy Meant to Combat Corruption

Minister of Aviation and Aerospace Development, Festus Keyamo, addressed the media following a FEC meeting, explaining that the President had approved the suspension of the cashless system. He emphasized that the original intention behind the policy was to eliminate corruption and improve revenue collection for the Federal Government. For over 50 years, toll gate operators had collected cash from motorists at various points, including toll gates and parking lots.

Keyamo noted that the cashless system was designed to modernize the process and ensure transparency. However, less than a week after its implementation, it caused serious congestion, leading to missed flights and delays in pickups. The President, concerned about the impact on Nigerians, directed the suspension of the policy to ease the burden on travelers.

Temporary Hybrid Arrangement

In response to the challenges, the government will temporarily revert to a hybrid payment system, allowing both cash and prepaid FAAN cards. Motorists who already own FAAN cards can continue using them, while others may pay in cash for now. This temporary measure aims to provide relief while officials work on a more efficient electronic solution.

Keyamo highlighted that the government is committed to a fully electronic system but stressed the need for it to be well-planned to avoid future disruptions. He also mentioned that private sector partnerships could play a role in developing a better platform, even if it involves paying commissions.

Lessons from the Implementation

Experts have criticized the implementation of the cashless policy, calling it a “good policy, poor implementation.” Daily Trust reported that passengers in Lagos and Abuja experienced what they described as “hellish” conditions, with some resorting to commercial motorcycles to avoid missing their flights. Many ended up missing their flights due to traffic snarls.

Aviation analyst Olumide Ohunayo pointed out that the focus on revenue generation overshadowed the need for smooth traffic flow. He argued that when traffic moves efficiently, revenue naturally increases. Ohunayo also noted that many drivers do not have credit cards, making the transition to an electronic system challenging.

He suggested that a six-month period would have been a more reasonable timeframe for the rollout, allowing people to adapt to the new system. Additionally, he proposed offering incentives for those without cards, such as charging triple the fee for those in a hurry.

Expert Opinions and Concerns

Another aviation analyst, speaking on condition of anonymity, suggested that the government’s decision to suspend the policy might have been influenced by political pressure. They noted that implementing such a policy overnight exposed people to potential exploitation.

Grp. Capt. John Ojikutu (retd), an aviation security expert, questioned why FAAN focused on toll revenues when passengers already paid the Passenger Service Charge (PSC). He praised the President for suspending the policy, highlighting the confusion around double-charging passengers.

Moving Forward

Keyamo emphasized that the suspension should not be seen as a return to permanent cash transactions but rather a temporary measure to address current challenges. The Ministry of Aviation and FAAN will continue working on a more efficient and seamless payment solution for airport users.

As the government reviews the policy, it must take into account the experiences of other countries and ensure that any new system is both effective and user-friendly. The goal remains to create a transparent and efficient toll payment system that benefits all travelers without causing unnecessary inconvenience.