By Okafor Joseph Afam, Publisher – SpringNewsNG | June 23, 2025

The Federal Airports Authority of Nigeria (FAAN) has announced plans to review airport tariffs http://Federal Airports Authority of Nigeria (FAAN) has announced plans to review airport tariffsand eliminate all cash-based payments across airports in Nigeria as part of a wider transition to a fully automated and contactless payment system.

Speaking at the Directorate of Commercial and Business Development (DCBD) Stakeholders Engagement Forum held at the Sheraton Hotel, Ikeja Lagos, Adebola Joy Agunbiade, FAAN’s Director of Commercial and Business Development, emphasized the urgent need for tariff adjustments and digital innovation to improve operational efficiency and financial sustainability.

“We have to review our tariffs in a way that won’t overburden stakeholders but will help us meet our financial obligations,” Agunbiade said.
“We’ll ensure early notifications are given before any tariff changes take effect to allow businesses to adjust accordingly.”

FAAN Moves Towards Full Automation and Online Payment

Agunbiade disclosed that FAAN will fully adopt a cashless payment system across all its services and terminals. The new system will use contactless “tap-and-go” airport cards, making transactions faster, more transparent, and secure.

“All payments will soon be made online using airport cards. You tap and go. It’s seamless, straightforward, and will ease operations at all levels,” she explained.

This move aligns with global best practices and responds to the authority’s internal analysis, which revealed a heavy reliance on aeronautical revenue—currently 92%—compared to just 8% from non-aeronautical sources. By contrast, many developed countries generate over 40% of airport revenue from non-aeronautical activities like retail, concessions, and advertising.

Tariff Review and Lease Agreement Reforms Underway

Agunbiade further explained that FAAN is undergoing a comprehensive review of lease agreements, addressing common misunderstandings between the agency and stakeholders.

“Many lessees don’t fully understand the terms of their agreements. We’ve restructured these documents, in consultation with our legal team, to make them clearer and more business-friendly,” she noted.

The updated agreements will come with more practical and enforceable terms for both new applicants and those seeking renewals.

FAAN Eyes Increased Non-Aeronautical Revenue Streams

As part of its diversification strategy, FAAN is exploring revenue channels “above the line” and “below the line.” Agunbiade noted that in 2024 alone, the agency generated over ₦2 billion from below-the-line sources, highlighting investment opportunities for private sector players.

“There’s a big opportunity for investors in these untapped areas,” she said. “We’re also investing in staff motivation and reward systems to boost service delivery across all airports.”