The Federal Airports Authority of Nigeria, FAAN, has announced that all cash transactions within its operations will cease nationwide, effective February 29, as part of the Federal Government’s push for a cashless economy, with all payments to be conducted digitally.
In an internal memo signed by Managing Director and Chief Executive Olubunmi Kuku, FAAN directed that all cash collections for official business must stop immediately.
The move follows the Federal Executive Council’s approval for government agencies to transition fully to electronic payment systems.
The directive aligns with an earlier circular from the Accountant-General of the Federation, Shamseldeen Ogunjimi, issued on November 24, which emphasized that government agencies must halt all cash dealings.
The circular noted persistent violations by some ministries, departments, and agencies, MDAs, stating that physical cash collection undermines federal e-collection systems and government policy.
The circular reads in part: “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.”
Kuku reinforced the directive, stating: “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.”
She also mandated that all directors 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 emphasized.
The memo also stressed that alternative approved payment channels must be fully implemented before the deadline, warning that non-compliance would attract penalties: “Alternative approved payment channels should be fully adopted, and no cash transactions should be accepted beyond the stated deadline. Failure will attract stiff penalties.”
FAAN’s move positions it alongside other federal agencies adopting digital payment methods, advancing the government’s broader public finance reforms and digital economy agenda.
Analysts note that strict enforcement of this policy is expected to curb revenue leakages and enhance accountability in government financial operations.
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