Economy

FAAN Boss Olubunmi Kuku Explains Airport Reforms, Cashless Policy Challenges and Hub Vision

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The Managing Director of the Federal Airports Authority of Nigeria, Olubunmi Kuku, has shed light on ongoing reforms across Nigeria’s airports, addressing recent disruptions caused by the cashless policy, plans to transform airports into regional hubs, and timelines for key infrastructure upgrades.

Speaking on the controversial cashless policy, Kuku admitted that its rollout created significant challenges, particularly in Lagos and Abuja. She explained that while the policy was introduced in mid 2025 and intensified later, many airport users were unprepared for its full enforcement. The situation led to congestion and delays, prompting intervention from Bola Ahmed Tinubu.

To ease the burden, the Federal Government approved a hybrid payment system, allowing both cash and contactless options. According to Kuku, this approach will remain in place until infrastructure improves and more users adapt to digital payments.

Beyond payment systems, Kuku emphasized FAAN’s long term ambition to transform Nigerian airports into transit hubs similar to global models like Cairo International Airport and O R Tambo International Airport. She explained that a true hub allows passengers to transit seamlessly between destinations without entering the host country.

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However, she noted that Nigeria currently faces limitations, including low passenger traffic relative to its population and the absence of proper transit facilities. Addressing these gaps will require improvements in infrastructure, increased airline connectivity, and stronger bilateral air service agreements.

On the renovation of the old terminal at Murtala Muhammed International Airport, Kuku confirmed that the 22 to 24 month timeline remains intact despite a recent fire incident. She described the impact as minimal, noting that operations were quickly restored.

She also highlighted the successful deployment of a temporary terminal, now serving airlines such as Air France, KLM, Ethiopian Airlines, and Middle East Airlines, ensuring continuity during the rehabilitation process.

Kuku reaffirmed FAAN’s commitment to improving passenger experience, enhancing infrastructure, and positioning Nigeria as a competitive aviation hub in Africa.

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