President Bola Tinubu on Wednesday ordered the immediate suspension of the cashless policy at airport toll gates introduced by the Federal Airports Authority of Nigeria (FAAN) on March 1.
The policy mandated digital payments via “Go Cashless” cards or POS systems for toll gates, parking, and other access points, replacing over 50 years of cash collection.
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Its implementation had been met with chaotic scenes and some air passengers missing their flights, especially at the Murtala Muhammed International Airport in Lagos and Nnamdi Azikiwe International Airport, Abuja.
Aviation Minister, Festus Keyamo, announced the President’s decision to journalists in Abuja following the Federal Executive Council (FEC) meeting presided over by President Tinubu.
Keyamo explained the policy’s intent: “In the aviation sector, two very important issues arose today. The first one has to do with the present cashless system we introduce at our toll gates across the country in order to eliminate corruption, and optimize revenue for the federal government.
“You recall that this practice had gone on for more than 50 years with collection of cash… However, with the introduction of the cashless system less than a week ago, it’s created a lot of gridlock across the country.”
The Minister explained that President Tinubu intervened decisively out of empathy for passengers, saying that: “Mr. President was very concerned about the health of Nigerians and the fact that most Nigerians were losing their flights, missing their flights. And so Mr. President, out of empathy, directed today that we should suspend the present system because it creates a lot of ripple and Nigerians are suffering as a result of it.”
The Minister added: “The President therefore directed me that we should go back to the drawing board, we should go back to status quo. Suspend the present system whereby people will have to pay through the means we have introduced at the various gates across the country, and then go and perfect the system properly.”
Keyamo announced a temporary hybrid approach: “I’m hereby directing FAAN also based on the directive of the president to suspend the cashless process, which we will go back to drawing board, go back to status quo. For those who have FAAN card before, we can do a hybrid system. We’re going to be having a system whereby we can collect cash temporarily and of course use the cards that they have collected temporarily for now.”
Keyamo also added that private entities will help refine the process: “We’ll be engaging with various private sector persons and entities who will be interested in operating the gates for us. Electronically and collect revenues for the federal government… Mr. President said we have to pay commission… but we’ll bring private sector participants to help us devise a much more efficient payment system that will still eliminate cash inflows. And this will be done as quickly as possible.”
Keyamo stressed the motive: “The major reason why the president took this decision is to eliminate the present gridlock that we’re experiencing, especially at the Lagos toll gates leading to the airport. That’s a major reason, not that the president is happy with the cash system, no. It’s just an empathetic decision… to reduce the suffering… that Nigerians are going through right now.”
He concluded on the policy: “That is what I will confer with FAAN, and we will do a further briefing after conferring with FAAN, a further briefing on the what we obtain presently as we transit to a much more efficient system.”
Speaking on FEC approval on re-scoping of Abuja Second Runway Project, Keyamo said: “The second one has to do with the long-standing vision of the second runway… And there was actually a memo before council today which Mr. President approved on the second runway.”
He outlined the challenges that stalled the project inherited from the previous administration: “Remember that the construction had four issues actually that affected the projects. And those four issues that affected the projects were one, the foreign exchange volatility that came up between when it was originally awarded by the previous government and of course this government. So the foreign exchange volatility affected the pricing of the projects.”
Keyamo continued: “That affected the compensation that we had to pay for economic trees and other encumbrances at the project sites. And so that’s why we had to augment and rescore that project. The third one is additional works identified by the ministry and consultants, notably the extension of the runway, additional taxiways, and apron works that were not captured in the original design that we inherited as a government.”
He detailed the re-scoping and re-award: “And so in the process of doing all of this, we needed to completely re-scope that project again, and of course, re-award it. There were four components of the project that we had to re-award, which is one, the construction of the runway, the taxiways, the links, the fencing, with gates, internal perimeter, and certain roads, and crash road services around the airport.”
The approvals covered technical upgrades: “And the second aspect of that project is the procurement and installation of the airfield lighting, navigational aids, communication and metrological equipments. Because after the normal… runway, you know all these technical and equipments we have to come in to aid the use of the runway.”
Further components included: “The third aspect of that project that was approved today is the provision of power supply and including construction of power station, and switch road, irrespective of the project. And then, of course, the first one is the provision of vehicles, complementary agents, and spare parts for the construction of the second runway.”
Keyamo concluded: “So, graciously, the President approved these four aspects of the project today.”