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FAAN Shuts Down KFC Outlet at Lagos Airport

FAAN to Increase Service Tariffs, Launch Contactless Payment and Enforce Reforms at Airports

The Federal Airports Authority of Nigeria (FAAN) has announced that plans are underway to increase tariffs for service providers operating in airports under its management. This was made known during the Directorate of Commercial Business Development (DCBD) Stakeholders Engagement Forum held in Lagos on Monday. According to FAAN, the decision is driven by the need to balance operational costs and revenue generation, with 92% of the authority’s income derived from aeronautical services and only 8% from non-aeronautical sources.

Adebola Agunbiade, Director of Commercial and Business Development at FAAN, emphasized that the tariff adjustment will be approached with caution to ensure it is fair to service providers while enabling the agency to meet its financial obligations. She reassured stakeholders that they would be notified well in advance to allow them to prepare for the changes. The review, she noted, will not affect tariffs recently updated, and the process will be carried out transparently.

Additionally, FAAN is moving toward implementing an automated, contactless payment system across its airports. Agunbiade explained that a new airport card will soon enable users to “tap and go,” streamlining the payment process and enhancing business efficiency. She also highlighted that FAAN generated N2 billion from “below the line” platforms last year, presenting fresh investment opportunities for interested stakeholders.

Regarding lease agreements, Agunbiade acknowledged past challenges, primarily due to misunderstandings of contract terms. She stated that the authority has revised some terms to be more practical and business-friendly for those seeking renewals or new applications.

FAAN’s Managing Director, Olubunmi Kuku, also addressed operational concerns, warning against unauthorized individuals posing as car hire agents or Bureau de Change operators. She announced that licenses for such violators would be revoked. Moreover, she revealed plans to decongest Lagos Airport roads by removing tankers and illegal roadside businesses, describing them as both a security threat and a blight on the airport’s appearance.

Kuku reiterated FAAN’s commitment to automation, stating that the adoption of cashless and contactless systems will enhance transparency, trackability, and accountability in revenue collection. Upgrades to parking facilities and tollgates are also in progress to improve service delivery and user experience across Nigerian airports.

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