FAAN bans cash payments across all operations, mandating full electronic transactions by February 29, 2026, in line with federal Cashless Policy

The Federal Airports Authority of Nigeria has banned all physical cash collections across its operations, positioning the aviation sector among the first to fully implement the federal government’s reinforced Cashless Policy.

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In an internal memo dated 3 February 2026, the Managing Director and Chief Executive, Olubunmi Kuku, directed all directorates to cease accepting cash immediately. Departments have been given until 29 February 2026 to fully phase out cash transactions for all official business.

Kuku warned that non-compliance would attract stiff penalties under the Cashless Policy regime and emphasised that the move aligns with broader fiscal reforms approved by the Federal Executive Council.

The directive follows a recent Treasury Circular from the Office of the Accountant-General of the Federation, which expressed concern over continued cash handling in various Ministries, Departments, and Agencies (MDAs).

The circular described such practices as violations of the Treasury Single Account (TSA) and e-payment frameworks, noting that cash transactions undermine revenue collection systems and financial integrity.

Under the new measures, all federal revenue transactions must be processed electronically. Agencies are prohibited from accepting cash in any currency and must display public notices informing citizens that cash payments are no longer valid.

Accountability rests directly on agency leadership, with Accounting Officers held personally responsible for any breaches. Directors of Finance and Internal Audit Units are tasked with ensuring compliance and monitoring.

To ease the transition, agencies handling cash have been given 45 days to deploy functional Point of Sale (PoS) terminals or other approved electronic payment platforms at all revenue points.

The circular emphasised that electronic systems create transparent records, reduce opportunities for diversion or under-reporting, and strengthen centralised oversight under the TSA.

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Kuku reiterated FAAN’s commitment to conducting all financial transactions through approved electronic systems, signalling a major shift in the aviation ecosystem, which manages significant volumes of passenger service charges, concession fees, and regulatory payments daily.