The clarification comes just a day after Festus Keyamo, the Minister of Aviation and Aerospace, told State House correspondents that the President had instructed the immediate halt of FAAN’s cashless policy.
Traffic disruptions had intensified around the toll gates leading to Murtala Muhammed International Airport in Lagos following the rollout of the cashless system, causing widespread congestion and frustration among commuters.
Speaking at a press conference on Thursday at Lagos airport, FAAN Managing Director Olubunmi Kuku described the President’s directive as a “major win” for both FAAN and the Ministry of Aviation. She emphasized that the cashless policy, which began last year, had involved extensive public sensitization campaigns.
“We began widespread enlightenment campaigns, and even the National Orientation Agency had publicized it as far back as October last year,” Kuku said. “We were implementing a federal government directive approved at the Federal Executive Council. While a deadline was set, we had recommended a hybrid approach allowing both cashless and traditional payment options.”
Kuku noted that the President recognized the traffic challenges caused by the rollout and asked FAAN to temporarily revert to a hybrid system, allowing cash transactions alongside digital payments.
“This approach gives us time to refine the system and ensure more users are onboarded,” she said, describing it as a strategic adjustment rather than a suspension.
Despite months of public awareness campaigns, Kuku said many passengers were unprepared for the March 1st deadline. She highlighted that over 100,000 users had enrolled in the cashless system between October and early March, with 60,000 of them signing up in just the three days before the deadline—a figure she called “a major win.”
Going forward, FAAN plans to enhance the technology, broaden public education, and bring in private sector expertise to adopt lessons from other regions. According to Kuku, 99 percent of deployed cashless cards were successfully used, but the system contributed to gridlock in Lagos due to the location of toll gates and high commuter traffic. In contrast, similar rollout in Abuja saw a reduction in congestion by day three.
Kuku stressed that the hybrid model will remain flexible. “Users can still use cards and cash until they are fully onboarded. The process is not halted—it is a measured adjustment to reduce congestion while allowing more people to participate,” she said, adding that the initiative also aims to curb revenue leakages.
FAAN is expected to review the system in the coming days to optimize the hybrid approach, balancing convenience for travelers with operational efficiency at the nation’s busiest airports.