In a bid to modernise airport operations and enhance revenue generation, the Federal Airports Authority of Nigeria (FAAN) has announced its decision to increase service tariffs and introduce a fully automated, contactless payment system across all airports under its management.
The disclosure came during a high-level stakeholders’ engagement forum organised by FAAN’s Directorate of Commercial and Business Development (DCBD) in Lagos on Monday. The move is part of the agency’s broader effort to modernise operations, improve service delivery, and optimise revenue streams from both aeronautical and non-aeronautical sources.
Addressing attendees at the forum, FAAN’s Director of Commercial and Business Development, Mrs. Adebola Agunbiade, explained that the tariff adjustment had become imperative as 92 per cent of the agency’s revenue still comes from aeronautical services. Only eight per cent is currently derived from non-aeronautical sources, a situation she described as unsustainable for the agency’s long-term financial health.
“We are reviewing our tariffs, but it will be done in a way that balances business viability for service providers with FAAN’s operational sustainability,” Agunbiade said. “Stakeholders will be informed ahead of time to enable adequate business planning.”
The tariff review will impact service providers operating within FAAN’s airport terminals nationwide, with the intent to standardise charges and reduce informal negotiations or underreported revenues.
In a significant technological leap, Agunbiade also unveiled plans to launch a contactless “airport card” that will enable seamless payments across airport terminals. Users will be able to tap the card at designated terminals for services such as parking, tollgate fees, terminal access, and other transactions—eliminating cash handling and manual processes.
The innovation aligns with FAAN’s digitisation roadmap, which includes full automation of airport services to boost operational efficiency, plug revenue leakages, and enhance user convenience.
“This is not just about technology for technology’s sake,” said Agunbiade. “It’s about reducing friction in travel experiences and making Nigerian airports more competitive and investor-friendly.”
In 2024, FAAN generated ₦2 billion from non-core revenue streams—such as retail concessions, advertising, and car parks—prompting renewed calls for private sector investors to explore opportunities in these areas. Agunbiade disclosed that FAAN is revising lease agreements to be clearer, more transparent, and business-friendly.
The agency also plans to modernise its parking systems and tollgate operations, creating end-to-end digital infrastructure to improve tracking and transparency. This is expected to increase non-aeronautical revenue significantly and reduce human interface, which has been a point of revenue leakage and fraud in the past.
Meanwhile, FAAN’s Managing Director, Mrs. Olubunmi Kuku, revealed that the authority will soon revoke the licenses of individuals and groups who disguise as Bureau de Change operators or car hire agents, but engage in touting and illegal activities within airport premises.
She also vowed to remove all stationary tankers and roadside businesses operating illegally near the Lagos airport, citing security and safety concerns for travelers and airport operations.
“Our goal is to maintain clean, safe, and functional airports that meet global standards,” Kuku noted. “We’re enforcing stricter compliance measures, especially in high-traffic terminals.”
The recent announcement underscores FAAN’s renewed commitment to transparency, operational excellence, and commercial growth. Industry stakeholders have largely welcomed the reforms but urged FAAN to ensure consistent stakeholder engagement, fairness in tariff adjustments, and effective implementation of the new systems.
With aviation contributing over $1.7 billion to Nigeria’s GDP and growing, experts believe that reforms such as these are essential for the sector to realise its full potential and compete globally.