President Bola Ahmed Tinubu has ordered the immediate suspension of the newly introduced cashless payment system at airport toll gates, following widespread reports that the policy triggered severe congestion and caused travellers to miss flights.
The decision was announced by the Minister of Aviation and Aerospace Development, Festus Keyamo, after a Federal Executive Council meeting at the State House in Abuja.
According to Keyamo, the cashless system was introduced by the Federal Airports Authority of Nigeria (FAAN) as part of efforts to eliminate corruption and modernise revenue collection.
“The first one has to do with the present cashless system we introduced at our toll gates across the country in order to eliminate corruption and optimise revenue for the Federal Government,” the minister said.
He noted that for over five decades, toll gate operators collected physical cash at airports and parking points a system the government believed was vulnerable to leakages.
“You recall that this practice had gone on for more than 50 years where operators of the toll gates collect cash from motorists at points of collection across the country, mostly at toll gates and other points like parking lots,” he added.
READ ALSO: Ethiopia Begins Construction of Africa’s Biggest Airport
However, the reform quickly produced unintended consequences. Within days of its rollout, long queues formed at airport access points, particularly in Lagos and Abuja, paralysing movement and leaving passengers scrambling.
Keyamo disclosed that the President grew alarmed as reports emerged of Nigerians arriving late for departures.
“Mr President was very concerned about the welfare of Nigerians and the fact that most Nigerians were losing their flights, missing their flights,” he said.
“So Mr President, out of empathy, directed today that we should suspend the present system because it creates a lot of gridlock and Nigerians are suffering as a result of it.”
The suspension does not mark a full retreat from digital reform. Instead, the government will temporarily revert to the old system while refining the electronic model.
Keyamo explained that a hybrid arrangement would immediately take effect: “For those who have bought FAAN cards before, we can do a hybrid system whereby we can collect cash temporarily and, of course, use the cards that they have collected temporarily for now.”
This means motorists can pay cash again, while previously purchased prepaid FAAN cards will remain valid.
The minister revealed that the Federal Government is now considering involving private operators to design and manage a more efficient electronic payment platform — even if that means paying commissions.
“If we have to pay commission, we have to pay commission, but we will bring in private sector participants to help us devise a much more efficient payment system,” he said.
Tinubu, he stressed, remains committed to a fully electronic revenue system — but not at the expense of efficiency.
“To the extent that it will not create the gridlock that we are having right now.”
Keyamo emphasised that the suspension should not be interpreted as a permanent return to cash transactions. Rather, it is a stopgap measure aimed at easing congestion and restoring order at airport entry points.
“The major reason why Mr. President took this decision is to eliminate the present gridlock we are experiencing, especially at the Lagos and Abuja toll gates leading to the airport,” he said.