Nigeria Reviews Airport Cashless Policy After Gridlock at Lagos, Abuja

Nigeria’s Minister of Aviation and Aerospace Development, Festus Keyamo, has announced an official review of the first week of the new Nigeria airport cashless policy. The move follows significant traffic gridlock at major airports after the policy was enforced on March 1. The system is a key component of the government's strategy to eliminate corruption and enhance revenue transparency at airport facilities.

The policy's implementation, managed by the Federal Airports Authority of Nigeria (FAAN), led to widespread delays at the access toll gates of Murtala Muhammed International Airport (MMIA) in Lagos and Nnamdi Azikiwe International Airport (NAIA) in Abuja. The disruptions prompted a public apology from FAAN and a direct response from the minister, who acknowledged the initial challenges while reaffirming the government's long-term commitment to the initiative.

In a statement, Keyamo addressed the public's concerns, stating, "We will surely improve the efficiency of the new system as time progresses... this government is determined to end the practice of collecting cash at our gates. Kindly bear with us, please." This review signals the ministry's intent to address logistical flaws that emerged during the initial rollout.

Implementation and Public Response

The transition to a fully electronic payment system at airport revenue points, including car parks and access gates, was part of a broader federal directive for all government agencies to cease cash collections. According to FAAN, the initial days of the FAAN cashless payment system were marked by a mixture of public frustration and rapid adoption.

Henry Agbebire, FAAN's Director of Public Affairs and Consumer Protection, provided data illustrating the public's response. While 30,000 'go-cashless' cards were onboarded by motorists before the launch date, an additional 40,000 were registered in the first three days of enforcement. This brought the total number of cards issued to over 70,000 shortly after the rollout, suggesting that many users waited until the policy was mandatory to comply. Agbebire apologized for the disruptions, attributing the gridlock to this last-minute surge in registrations and the learning curve associated with new payment methods.

FAAN clarified that multiple payment options are available to ease the transition. The pre-loaded 'go-cashless' cards offer the fastest transaction times at toll gates. Standard debit card payments are also accepted, though FAAN noted these transactions may be slower and contribute to delays. For frequent airport users and designated vehicles, VIP e-tags provide automated access, further segmenting the payment options to improve traffic flow.

Broader Context of Digitalization

The airport cashless initiative is a component of Nigeria's larger push towards digitalization and financial transparency. The policy aligns with the federal government's Treasury Single Account (TSA) system, designed to consolidate government revenues and reduce leakages. The FAAN revenue collection process has historically been vulnerable to such issues, and the electronic system is intended to create a verifiable and auditable trail of all transactions.

To facilitate the technical aspect of the transition, FAAN partnered with fintech company Paystack to manage the payment gateway. This public-private partnership is indicative of a wider trend in Nigerian governance, leveraging private sector expertise to modernize public infrastructure and services. The policy was first announced in late 2025 and underwent a pilot phase at key airports before the nationwide mandate began in March.

Next Steps and System Improvements

The review announced by Minister Festus Keyamo is expected to analyze the operational data from the first week, focusing on transaction times, traffic flow patterns, and user feedback from the Lagos and Abuja airports. The findings will likely inform adjustments to the system to mitigate future disruptions. Potential improvements could include deploying additional personnel to assist motorists, enhancing the processing speed for debit card transactions, and launching a more extensive public awareness campaign to encourage pre-registration for cashless cards.

While the government remains firm on the policy's anti-corruption objectives, the official review and public apologies demonstrate a responsive approach to the logistical hurdles. The immediate challenge is to refine the system's efficiency without compromising its core goal of securing national revenue streams. The success of this balancing act will be critical for maintaining public support for this and future digitalization projects.

Why This Matters

This policy shift serves as a significant test case for large-scale infrastructure modernization in Nigeria. It highlights the inherent friction between implementing anti-corruption measures and ensuring seamless public service delivery. For the aviation sector, the successful transition to a cashless environment could establish a new standard for operational efficiency and financial accountability at airports across the continent. The outcome will influence how other Nigerian government agencies approach similar digitalization mandates, making the resolution of these initial challenges a closely watched development.

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