The Federal Airports Authority of Nigeria (FAAN) has announced it has introduced cashless payments in all its revenue channels and it is poised to enforce the payment of newly introduced tariffs in coming weeks.
The agency said that in order to multiply its revenue it must close all possible leakages and in addition to that; it has to increase tariff in order to charge for its services in tandem with present economic realities.
The agency revealed that 92 percent of its revenue comes from aeronautical sources, while only eight percent is generated from non-aeronautical sources.
The agency said this contrasts with other developed airports in the world, which generate over 40 percent of their revenue from non-aeronautical sources.
FAAN hopes to change the situation with the automation of its revenue points and introduction of contactless system to eliminate human interface in its financial transactions.
FAAN made this known during the Directorate of Commercial and Business Development (DCBD) Stakeholders Engagement Forum with concessionaires yesterday in Lagos.
The Director of Commercial and Business Development, Adebola Joy Agunbiade, told the business partners, “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.”
She assured that FAAN would notify service providers early enough before implementing the tariff increase.
“We have done it already, we will be putting out notices on it, but please rest assured that we will not be getting a review on tariff that probably has been done too recently. But we are reviewing our tariff, and we will also ensure that we notify you early enough so that you as businesses can plan towards it.”
Agunbiadeemphasised the importance of lease agreement restructuring, stating: “We’ve had a lot of issues around this, and I think it’s mostly because most times when we give out these agreements, people don’t read them to see what the terms are.”
She said FAAN has worked on the agreements with its legal team and has done a thorough review of the agreements.
“We’ve come up with different terms. So, if anyone is coming for a renewal or for an application, you will see that some of the terms in the agreements have changed. And in this, we will try our best to ensure that you will find terms that are doable,” she said.
Reiterating the plan to fully introduce contactless payment system, she said: “All payment will soon be made online using our cards. It is an airport card. You tap and go. It is a very seamless and straightforward process that will ease business and payment structure for all our payment systems.”
“We have above the line and below the line revenue generating platforms. Last year, we realized 2 billion naira from below the line platforms alone. It is a big opportunity for investors, and people can leverage on this,” Agunbiade disclosed, adding that FAAN is investing in reward systems for its staff.
Olubunmi Kuku, FAAN’s Managing Director and CEO, expressed concerns over the number of calls and inquiries from service providers on payment renewals and applications.
She highlighted the importance of automation, stating: “Automation makes it easier for you to track your payment. We’re going cashless and contactless payment. So, it is easier and faster. People can use these cards for payment points across our terminals.
“We have started the pilots in Lagos; we’re going to be rolling this out across other airports and of course across all of our different lines. There’s a lot of investments that have gone into our infrastructure upgrades and automation specifically. We will be using ECR devices for all of the payments at the terminals.
“We’re also upgrading some of our parking and automating the tollgate facilities as well. All in a bid to make sure that there’s visibility, there’s transparency, and of course accountability for the funds that we earn for our passengers to understand that it’s going right back into the businesses,” she explained.
Kuku also warned that FAAN would revoke licenses of car hire service providers and Bureau de Change operators who hide under their duties at the airport to engage in touting activities.
She spoke on efforts to decongest the Lagos airport access roads by removing the tankers packed on the roads.
“This is not the scene I want to see. We have gotten court orders to take out those tankers. We will be taking drastic measures. We cannot just have businesses on the side of the road in a manner that is not organized.
“We will be taking very drastic actions. A lot of the tankers there do not operate in our environment. They will have to go. They are a security risk, and the scene is obnoxious for an airport environment,” Kuku said.
