President Bola Ahmed Tinubu has ordered the suspension of the recently introduced cashless payment system at Nigerian airports.
The directive followed complaints that its implementation led to severe traffic gridlock and hardship, especially for air travellers.
Aviation and Aerospace Development Minister Festus Keyamo made this known to reporters after the Federal Executive Council (FEC) meeting in Abuja yesterday.
Keyamo explained that the cashless system was initially introduced by the Federal Airports Authority of Nigeria (FAAN) to eliminate corruption and improve revenue collection for the Federal Government, replacing a decades-old practice of cash payments.
He said: “The first one has to do with the present cashless system we introduced at our toll gates across the country to eliminate corruption and optimise revenue for the Federal Government.
“You recall that this practice had gone on for more than 50 years, where operators of the toll gates collect cash from motorists at points of collection across the country, mostly at toll gates and other points like parking lots.”
However, the minister noted that less than a week after the introduction of the cashless system, it began to create serious congestion around airport access roads, particularly in Lagos and Abuja.
According to him, the President became concerned that the situation was causing undue hardship for travellers and directed that the system be immediately suspended pending further improvements.
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“Mr President was very concerned about the welfare of Nigerians and the fact that most Nigerians were losing their flights, missing their flights.
“So Mr President, out of empathy, directed today that we should suspend the present system because it creates a lot of gridlock and Nigerians are suffering as a result of it”, Keyamo said.
He added that the President instructed the ministry and FAAN to revert temporarily to the previous payment arrangement while officials work on a more efficient electronic solution.
Keyamo explained that the government would implement a temporary hybrid arrangement allowing both cash payments and the use of prepaid FAAN cards already purchased by some motorists.
“For those who have bought FAAN cards before, we can do a hybrid system whereby we can collect cash temporarily and, of course, use the cards that they have collected temporarily for now,” he said.
The minister added that the government would engage private sector partners to develop a more efficient electronic payment platform that would eliminate cash transactions without causing delays for motorists.
He said the President had directed that the review process should not take long, emphasising the need to restore efficiency at airport entry points as quickly as possible.
Keyamo noted that Tinubu remains committed to a fully electronic system for revenue collection at airports but insisted that the new arrangement must not create the kind of congestion currently experienced.
“To the extent that it will not create the gridlock that we are having right now,” he said.
The minister further revealed that the government may allow private operators to manage the electronic payment system and collect revenues on behalf of the Federal Government, even if it requires paying commissions.
“If we have to pay commission, we have to pay commission, but we will bring in private sector participants to help us devise a much more efficient payment system,” he said.
Keyamo stressed that the suspension of the policy should not be interpreted as a return to permanent cash transactions but rather a temporary measure aimed at easing the difficulties faced by travellers.
He reiterated that the President’s decision was driven by empathy and the need to reduce the suffering experienced by airport users following the introduction of the system.
“The major reason why Mr President took this decision is to eliminate the present gridlock we are experiencing, especially at the Lagos and Abuja toll gates leading to the airport,” the minister said.
Keyamo added that the ministry would consult further with FAAN and provide additional briefings as work progresses on developing a more efficient and seamless payment solution for airport users.
Speaking further on aviation-related issues, Keyamo said FEC approved the re-scoping and continuation of the long-delayed Abuja Second Runway project.
According to him, the decision followed a memo presented to the Council and approved by President Bola Ahmed Tinubu to revive the long-standing plan for a second runway at the Nnamdi Azikiwe International Airport, Abuja.
Keyamo explained that the project, originally awarded by the previous administration, had faced several challenges that stalled its execution, including foreign exchange volatility, which significantly altered the project’s original cost estimates.
He added that as part of the restructuring, the government approved the re-award of four major components of the project, including the construction of the runway, taxiways and connecting links, perimeter fencing with security gates, internal roads within the airport premises, and crash roads for emergency services.
The approvals also covered the procurement and installation of critical technical infrastructure required for the operation of the runway, such as airfield lighting systems, navigational aids, communication equipment and meteorological facilities.
In addition, the Council approved the provision of dedicated power infrastructure for the project, including the construction of a power station and switchyard to ensure a stable electricity supply to the runway facilities.