The Federal Airports Authority of Nigeria (FAAN) has announced plans to increase tariffs for all service providers operating across its airports, alongside transitioning to a fully automated and cashless payment system. The move is aimed at strengthening revenue generation and improving operational efficiency.
The Director of Commercial and Business Development at FAAN, Mrs Adebola Joy Agunbiade, made the disclosure on Monday during the Directorate of Commercial and Business Development (DCBD) Stakeholders Engagement Forum held at Sheraton Hotel, Ikeja, Lagos.
Agunbiade stated that FAAN currently derives 92 percent of its revenue from aeronautical sources, with just 8 percent from non-aeronautical sources—a stark contrast to international best practices, where non-aeronautical revenue contributes over 40 percent. She said the authority is working to reverse this trend through automation and improved business structures.
“We must review our tariffs in a manner that supports our financial obligations but remains manageable for our partners,” Agunbiade explained. She assured stakeholders that sufficient notice would be provided before any adjustments take effect.
“We are already issuing notifications, but rest assured, we won’t be reviewing tariffs that were recently adjusted,” she added. “We will give enough lead time for your businesses to prepare accordingly.”
On lease agreement issues, Agunbiade underscored the need for clarity and compliance, noting that many disputes stem from lessees not fully understanding contract terms. “We’ve reviewed our agreements with the legal team, and some terms have been updated. Applicants for renewals or new leases will see improved, more practical provisions,” she said.
As part of its transformation, FAAN will roll out a digital, contactless payment system. “All payments will soon be made online via our airport card. Just tap and go. It is seamless and will streamline all business and payment operations across our airports,” Agunbiade stated.
She also noted that FAAN recorded ₦2 billion in revenue last year from below-the-line platforms alone, and called on investors to take advantage of emerging opportunities.
FAAN’s Managing Director and CEO, Mrs Olubunmi Kuku, echoed the push for automation, expressing concern over the number of manual payment queries still being received. “Automated systems will allow users to track payments more easily. We are phasing out cash completely,” she affirmed.
She said pilot schemes had begun in Lagos and would soon expand to other airports, backed by significant investments in infrastructure and automation. “We are deploying Electronic Cash Register (ECR) devices across terminals and modernising our tollgate and parking systems to enhance transparency and accountability,” Kuku added.
On regulatory compliance, Kuku issued a warning to car hire and Bureau de Change operators found engaging in touting under the guise of legitimate operations. “We will revoke licences where necessary. Such activities tarnish the airport environment and will not be tolerated,” she said.
She also addressed concerns over congestion around Lagos airport roads caused by parked tankers.
“This is unacceptable. We have received orders to clear them. These tankers do not belong in the airport environment, they pose a security threat and create an unsightly impression,” she stated.
The FAAN boss assured that the authority remains committed to delivering a world-class airport experience through modernisation, improved regulation, and enhanced service delivery.
