Less than 24 hours after the Minister of Aviation and Aerospace Development, Festus Keyamo, announced the suspension of the cashless payment system recently introduced by the Federal Airports Authority of Nigeria (FAAN) at toll gates across the nation's airports, the Managing Director of FAAN, Olubunmi Kuku, has clarified that President Bola Ahmed Tinubu did not order the suspension of the initiative but directed that the process be improved before full rollout.
LEADERSHIP reports that chaos had erupted at toll gates leading to the Murtala Muhammed International Airport, (MMIA) Lagos, and the Nnamdi Azikiwe International Airport, (NAIA) Abuja, as vehicular traffic gridlock worsened following the introduction of the cashless system.
However, Kuku, who spoke on Thursday during a press conference at the Lagos airport, described the development as a major win for FAAN and the Ministry of Aviation, noting that the cashless policy had been preceded by extensive public enlightenment.
"We started a lot of enlightenment; even the National Orientation Agency (NOA) had publicised it as far back as October last year. We were asked to implement a federal government directive which was done at the Federal Executive Council. This was what we were pushing towards, but unfortunately we were given a deadline.
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"We had actually asked for a hybrid approach that allows us to do both cashless as well as automated. So for me and the agency, we actually thank Mr. President for this laudable initiative. The fact is that the President is not just talking of federal government initiatives or policy rollouts but understanding the nature of every environment," the MD said.
Kuku explained that the President observed the traffic gridlock resulting from the cashless policy and directed FAAN to revert to the status quo or adopt a hybrid approach.
"That's what we're doing. So this is a win for the industry," she said.
She further disclosed that the President has given FAAN time to refine the process and ensure wider user adoption.
According to her, despite the enlightenment campaign by FAAN, many passengers and commuters did not realise the agency would strictly enforce the March 1 deadline.
"From October to March 3rd, we had over 100,000 enrolled users, of which 60,000 of those users were enrolled in the last three days. So for me, that is a major win.
"So going forward, we need to make sure that the technology works. Secondly, to make sure that a lot of our users are more enlightened. We give more people the options to pick up, whether it's the cards, the e-tags, and then bring the private sector on board to ensure we're using lessons learned that are made in other regions as well.
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"We actually had at least 99 percent success with the cashless cards that were deployed. However, we did realise that it created a significant amount of gridlock, especially in Lagos. You would note that the location of the toll gates in itself is not necessarily ideal.
"I say that because it's not just for airport users. Within the Lagos environment, you have other commuters who are either people working in the airport area or commuting to other areas," she explained.
She noted that in Abuja, for example, by the third day there was a noticeable reduction in the gridlock.
Kuku assured that in the coming days FAAN would review the process and implement the hybrid approach.
"If you listen to the minister's interview after the Federal Executive Council, he did say the hybrid approach still allows users to potentially use their cards and also pass through the toll. But at least now, we will still be able to accommodate cash where it's applicable. So I don't see any dilemma.
"As we continue the process, people should at least know that it's not a process where it's completely halted. It's an instruction to revert back to the status quo.
"So you can use your cards and potentially still be able to use cash until you purchase your card. So it's more to allow people to be onboarded with additional time. One of the reasons for this process is to actually block leakages," Kuku explained.
