FAAN Set To Increase Tariffs Across Airports Nationwide
- To begin cashless payment system
- Threaten to revoke BDC, car hire services licenses over louting
The Federal Airports Authority of Nigeria (FAAN) has announced plans to increase tariffs across airports nationwide.
The announcement was made during the Directorate of Commercial and Business Development (DCBD) Stakeholders Engagement Forum held Monday in Lagos.
FAAN’s Director of Commercial and Business Development, Adebola Joy Agunbiade, said the agency will also implement a complete transition to automated, contactless payment systems.
Agunbiade said the authority currently generates 92 percent of its revenue from aeronautical sources, with only eight percent coming from non-aeronautical activities which contrasts with developed countries where non-aeronautical sources typically account for over 40 percent of airport revenue.
She assured stakeholders and service providers that they would receive adequate notice before tariff implementations, adding “We have to find the means to review our tariff in such a way that it’s not too much on you but it’s also helping us to pay our bills.”
In her remarks, FAAN’s Managing Director, Olubunmi Kuku emphasised the authority’s commitment to eliminating cash transactions across all airport payment points, adding that the new system will feature cards that enable tap-and-go payments.
“All payment will soon be made online using our cards. It is an airport card. You tap and go. It is a very seamless and straightforward process,” she said.
According to her, the pilot program has already begun in Lagos, with plans for rollout across other airports, noting that the system will include ECR devices for terminal payments and automated parking and tollgate facilities.
“Automation makes it easier for you to track your payment. We’re going cashless and contactless payment. So, it is easier and faster,” Kuku stated.
FAAN announced generating N2 billion from “below the line platforms” alone last year.
The authority also stated it is restructuring lease agreements following legal reviews to create more workable terms for service providers.
Kuku mentioned that substantial investments have been made in infrastructure upgrades and automation systems and that revenue improvements will directly benefit passenger services and airport operations.
Meanwhile, FAAN has issued warnings over unauthorised activities at airports with Kuku threatening that licenses would be revoked for car hire services and Bureau de Change operators engaging in louting activities.
FAAN has also issued orders to remove tankers parked along Lagos airport access roads, mentioning security risks and environmental concerns.
“We cannot just have businesses on the side of the road in a manner that is not organized. We will be taking very drastic actions,” Kuku emphasized.
