The Federal Airports Authority of Nigeria (FAAN) has announced plans to increase tariffs for all service providers operating at its airports.

In addition to the tariff adjustment, FAAN will also implement a complete transition to automated, contactless payment systems, removing cash transactions.

This was disclosed by Adebola Agunbiade, FAAN's Director of Commercial and Business Development, while speaking at a Stakeholders Engagement Forum in Lagos.

According to her, FAAN currently derives 92% of its revenue from aeronautical sources, with non-aeronautical activities contributing only 8%, a divergence from global standards where non-aeronautical revenues often exceed 40%.

She also explained the necessity of tariff adjustments to sustain operational costs: "We are reviewing our tariff structure to ensure it remains fair to stakeholders while supporting our financial obligations.

“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."

Agunbiade assured stakeholders and service providers that they would receive adequate notice before tariff implementations, and it pilot phase will start in Lagos, The Sun reports.

No more cash based transactions at airport

Also speaking, Olubunmi Kuku, FAAN’s Managing Director stressed the authority’s commitment to eliminating cash transactions across all airport payment points.

She said the new system will feature cards that enable tap-and-go payments.

Kuku said: “All payments 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,”

Kuku outlined investments in infrastructure upgrades and automation across terminals, including the introduction of Electronic Cash Register (ECR) devices at payment points and automated tollgate facilities.

Addressing operational challenges, Kuku vowed to crack down on unauthorised activities within airport premises, including illegal parking and touting by service providers.

She warned: "We will revoke licenses of any operators engaged in illicit activities that undermine airport security and operations."

Kuku also promised decisive action to clear access roads obstructed by unauthorised vehicles and create a secure and orderly airport environment.

Charges for services provided by the Authority at airports include:

Landside: Includes car parks, shops, offices, and access roads.

Airside: Comprises runways, taxiways, fire services, water supply, power supply, and air lighting.

Terminal Building: Provides facilities such as arrival and departure lounges, check-in counters, airline offices, information desks, and offices for banks and government agencies, ensuring maximum passenger comfort. Additional amenities include VIP lounges, duty-free shops, snack bars, and other conveniences.
Public Phones: Available for passenger use.

Safety Measures: Ensures the safety of passengers, aircraft, and property.

Airport upgrades by FAAN

Earlier, Legit.ng reported that in recent months, FAAN has facilitated the upgrades of several airports in the country.

In March, it was reported that the Authority announced the closure of Samuel Ladoke Akintola Airport in Ibadan, Oyo state, for upgrade and expansion to an international airport.