Tinubu Orders Suspension Of FAAN Cashless Policy

Tinubu has ordered the suspension of the FAAN cashless policy.

NewsRain Nigeria reports that President Bola Tinubu has ordered the immediate suspension of the Federal Airports Authority of Nigeria (FAAN) cashless policy at airport toll gates.

This is coming barely four days after its rollout on 1 March triggered massive gridlock at major airports nationwide, including Lagos’ Murtala Muhammed International Airport and Abuja’s Nnamdi Azikiwe International Airport.

The policy mandated digital payments via “Go Cashless” cards or POS systems for toll gates, parking, and other access points, replacing more than 50 years of cash collection.

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It also led to long queues, stranded motorists, and numerous missed flights.

Aviation Minister, Festus Keyamo, disclosed this during a briefing to State House Correspondents after 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 introduced at our toll gates across the country to eliminate corruption… and optimise revenue for the federal government.”

He detailed the backlash: “You recall that this practice had gone on for more than 50 years with the 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. He quoted the president’s directive: “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 ripples, 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 the 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 said President Tinubu also emphasised speed and private sector involvement: “In fact, the president directed me that this should not take too long and I should get back to him on this issue…

If possible, even engage the private sector to ensure that we establish an electronic system to the extent that it will not create the gridlock that we’re having right now.”

He then 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 the drawing board, go back to the status quo.

For those who have an 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 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.”

He stressed the motive behind the suspension: “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 said further consultations would follow: “That is what I will confer with FAAN, and we will do a further briefing after conferring with FAAN, a further briefing on what we obtain presently as we transit to a much more efficient system.”

Speaking on FEC’s approval of the re-scoping of the 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 the council today, which Mr. President approved on the second runway.”

He outlined the challenges that stalled the project, which the Tinubu administration inherited: “Remember that the construction had four issues actually that affected the project.

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 include the construction of the runway, the taxiways, the links, the fencing with gates, the internal perimeter, and certain roads and crash road services around the airport.”

The approvals also covered technical upgrades: “And the second aspect of that project is the procurement and installation of the airfield lighting, navigational aids, communication, and meteorological equipment.

Because after the normal… runway, you know all these technical and equipment 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, including the construction of a 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.”