President Bola Tinubu has directed the immediate suspension of the newly introduced cashless payment system at airports across Nigeria after widespread complaints of traffic congestion and passenger hardship.
The Minister of Aviation and Aerospace Development, Festus Keyamo, announced the decision while addressing journalists at the State House in Abuja following the Federal Executive Council meeting chaired by the President.
According to Keyamo, the directive came after reports indicated that the cashless payment method deployed at airport toll gates and other collection points resulted in long queues, with several passengers missing scheduled flights.
He explained that the initiative was rolled out by the Federal Airports Authority of Nigeria to curb corruption and enhance government revenue, replacing a system that had relied on physical cash collections for decades.
“The first one has to do with the present cashless system we introduced at our toll gates across the country in order to eliminate corruption and optimise revenue for the Federal Government,” the minister said.
“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.”
Despite its objectives, the minister noted that within days of its implementation, the system began causing heavy traffic build-ups, particularly around airport access roads in Lagos and Abuja.
He said the President grew worried about the mounting difficulties faced by travellers and ordered that the policy be put on hold while improvements are considered.
“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.
The minister disclosed that the President instructed the ministry and FAAN to temporarily return to the previous method of payment while authorities work toward a more efficient electronic alternative.
He added that a temporary hybrid arrangement would be introduced, allowing motorists to pay with cash or use prepaid FAAN cards already in circulation.
“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.
Keyamo further stated that the Federal Government intends to collaborate with private sector partners to design a smoother electronic payment platform capable of eliminating cash transactions without creating bottlenecks.
He said the President emphasised that the review should be concluded swiftly to restore normal traffic flow at airport entry points.
While reaffirming Tinubu’s commitment to a fully digital revenue collection system, the minister stressed that efficiency must take precedence.
“To the extent that it will not create the gridlock that we are having right now,” he said.
He also indicated that private firms may be engaged to operate the payment infrastructure on behalf of the government, even if commissions are required.
“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,” the minister said.
Keyamo clarified that the suspension does not signal a permanent return to cash payments but is intended as a short-term intervention to address the immediate challenges encountered by airport users.
He reiterated that the President’s action was motivated by concern for citizens affected by the disruption.
“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,” he said.
The minister added that further consultations with FAAN would continue, with additional updates expected as efforts progress toward implementing a more seamless and effective payment solution for airport travellers.
