FAAN to increase tariffs for service providers, introduce contactless payment system
The Federal Airports Authority of Nigeria (FAAN) has announced plans to revise tariffs for service providers operating across its airports, while also preparing to implement an automated, contactless payment system to streamline operations.
The announcement was made during the Directorate of Commercial and Business Development (DCBD) Stakeholders Engagement Forum held in Lagos on Monday.
According to FAAN, the decision to review tariffs stems from the need to improve its revenue generation and sustain operations, as 92% of its income is derived from aeronautical sources, with just 8% coming from non-aeronautical activities.
Speaking at the forum, FAAN’s Director of Commercial and Business Development, Adebola Agunbiade, said the agency will give service providers sufficient notice before the new tariffs take effect.
“We are reviewing our tariffs to strike a balance between affordability for service providers and our need to cover operational costs,” Agunbiade explained.
“While some changes have already been made, we will issue formal notices ahead of implementation so businesses can plan accordingly.”
Agunbiade also announced the planned rollout of a contactless, card-based payment system across FAAN airports.
“All transactions will soon be conducted online using airport-issued cards in a seamless ‘tap-and-go’ process. This innovation aims to simplify payment procedures and enhance the overall business environment at our terminals,” she said.
Highlighting opportunities for investors, she revealed that FAAN generated over N2 billion last year from non-aeronautical platforms—classified as “below-the-line” revenues—signaling room for expansion.
On lease agreements, Agunbiade noted that new terms had been introduced to address past issues.
“Many challenges arose because recipients of lease agreements didn’t fully understand the terms.
We have now revised and simplified them to make them more workable for businesses.”
FAAN’s Managing Director, Olubunmi Kuku, also addressed issues of order and security within airport environments.
She warned that licenses would be revoked for individuals masquerading as car hire operators or Bureau de Change agents to engage in touting.
Kuku added that the authority would begin removing tankers clogging access roads to the Lagos Airport as part of broader efforts to decongest and sanitize the airport’s surroundings.
“We cannot allow disorganized roadside businesses or the presence of tankers to compromise safety and aesthetics.
They pose serious security risks and must be removed,” she stated.
She further emphasized the importance of automation in promoting transparency and accountability across FAAN operations.
“With automation, every transaction is traceable.
We are moving to a fully cashless, contactless system for payments at parking areas, tollgates, and other terminals to ensure proper oversight and reinvestment into airport infrastructure,” Kuku said.
Post Comment