Airports to go cashless, FAAN holds concessionaires’ engagement 

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The Federal Airports Authority of Nigeria (FAAN)  is finalising automation of payment processes at airports nationwide starting with Murtala Muhammed International Airport.

The Managing Director of FAAN, Mrs Olubunmi Kuku, gave the assurance on Monday in Lagos.

Kuku spoke at FAAN’s Directorate of Commercial and Business Development Stakeholder Engagement.

The engagement  had the theme: “Strengthening Partnerships for Sustainable Growth and Development”.

Kuku emphasised the need for Electronic Cash Register (ECR) devices for payments and automation of toll gates and parking facilities to enhance transparency and accountability.

“Today, the environment is slightly porous as people are just using physical ID cards and identification to pass through.

“We are actually going to be integrating that with BVN and  NIN  and, of course, biometrics on the domestic side,” she said.

Kuku said that the authority was commitment to providing smart airports and processes for business partners.

She  emphasised  the need for concessionaires to make timely payments and adhere to contract terms.

Kuku expressed dissatisfaction at the presence of tankers, which did not have any business at airport area.

She asked  that they should vacate the area or be sanctioned.

“We are going to be taking very drastic actions because it is obnoxious for an airport environment.

“I have realised that a lot of these tankers do not belong to those who operate in our environment.”

Kuku said there was the need to update and categorise concessionaires to address fee discrepancies.

She identified four major categories based on business type, retail mix and offerings to ensure fair and transparent fee structures.

The Director of Commercial and Business Development, FAAN, Ms Adebola Agunbiade, spoke on FAAN’s revenue scorecard for 2024.

Agunbiade said that FAAN  generated 92 per cent of revenue from aeronautics and  eight per cent  from non-aeronautics.

“This is not very good for us. International standard is 55 per cent aeronautical revenue and  45 per cent non-aeronautical, and we are very far from that.

“All of the initiatives that we have come up with and keep coming up with are to help us to drive our non-aeronautic businesses.

“That is why you all are here. We are hoping that we will get your support to be able to achieve this,” she said.

She said that FAAN would review its tariffs, adding that it had ‘suffered a lot from obsolete charges’.

Stakeholders in catering, car hiring, retailing and indoor advertising, among others, were present at the event. 

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