The Federal Airports Authority of Nigeria (FAAN) has announced plans to increase tariffs for all service providers at its airports and transition to a fully automated, contactless payment system, as part of broader efforts to enhance revenue generation and modernise operations.
Speaking at the Directorate of Commercial and Development Stakeholders Engagement Forum held in Lagos on Monday, FAAN’s Director of Commercial and Business Development, Adebola Agunbiade, revealed that 92% of the agency’s current revenue is derived from aeronautical sources, with only 8% coming from non-aeronautical activities. This, she noted, is far below global benchmarks where non-aeronautical revenue typically accounts for over 40% in many developed nations.
“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 told stakeholders, adding that FAAN would provide early notifications to service providers before any tariff adjustments take effect.
The move to phase out cash transactions at airport payment points will also support greater transparency, efficiency, and passenger convenience, as part of FAAN’s digitisation drive to align with international best practices.
These changes, FAAN noted, are crucial steps toward rebalancing its revenue structure, improving service delivery, and ensuring financial sustainability across Nigeria’s airport infrastructure.
