FAAN introduce contactless payments, hikes tariffs for service providers

Federal Airports Authority of Nigeria, FAAN, Monday, revealed that plans are in progress to increase tariffs for service providers operating across FAAN-managed airports.

FAAN also said it was in the process of transitioning to an automated and contactless payment system.

According to the agency, these moves were vital because 92 per cent of its revenues came from aeronautical sources, while eight per cent was generated from non-aeronautical sources.

FAAN said this at its Directorate of Commercial Business Development, DCBD, Stakeholders Engagement Forum held in Lagos.

Speaking at the event, Director, commercial and Business Development of FAAN, Adebola Agunbiade, assured that before implementation, FAAN would notify service providers as quickly as possible to ensure readiness.

She said: “We have to find the means to review our tariff in such a way that it is not too much on you (service providers) but it’s also helping us to pay our bills. 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.”

On contactless payment system, she said: “All payments 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 realised N2 billion from below the line platforms alone. It is a big opportunity for investors, and people can leverage on this.”

On restructuring lease agreements, she said: “We had a lot of issues around this, and I think it is mostly because most times when we give out these agreements, people don’t read them to see what the terms are. We have 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. We try our best to ensure that you will find terms that are doable. And they work.”

In her remarks, Managing Director of FAAN, Olubunmi Kuku, warned that it would revoke the licenses of those pretending to be car hire service providers and Bureau de Change operators to engage in touting.

According to her, efforts were also in place to decongest the Lagos Airport access roads by removing tankers.

She said: “This is not the scene I want to see. We have got 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 organised. They will have to go. They are a security risk, and the scene is obnoxious for an airport environment.”

On the importance of automation, she said: “Automation makes it easier for you to track your payment. We are going cashless and contactless payment. So it is easier and faster. People can use these cards for payment points across our terminals.

“We are 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.”