The (FAAN) has disclosed that more than 100,000 airport access cards have been issued to motorists nationwide as part of preparations to implement the Federal Government’s cashless toll payment system at airport entry gates.

Managing Director of FAAN, , revealed that 62,000 cards were issued within just three days following the enforcement of the policy earlier this month.

The initiative was introduced to support the Federal Government’s cashless policy at airport tollgates. However, its rollout initially caused widespread disruption at major airports.

Cashless rollout triggered chaos

When the policy took effect on March 1, many motorists and passengers encountered long queues and severe gridlock at airport entry points, especially in and .

The congestion left several passengers struggling to catch their flights.

According to Kuku, despite prior public awareness campaigns, many motorists did not believe the policy would actually be enforced on the scheduled date.

She said the unexpected surge in traffic created major bottlenecks during the early days of the rollout.

“We registered about 100,000 customers, of which 62,000 were done in the last three days,” she explained, noting that traffic had started easing after the initial challenges.

Tinubu orders suspension

Amid public complaints over the disruption, Nigeria’s President, , directed that airport tollgates be temporarily opened to allow motorists free access.

Following the directive, FAAN officials stationed at the tollgates reportedly vacated their posts, allowing vehicles to enter airports without payment for several days.

A motorist identified as Idris confirmed that vehicles had been passing through the tollgates freely since the directive was issued.

“I’ve been driving through the airport gate for about five days now without paying or seeing officials around,” he said.

Government reviewing new system

The Minister of Aviation and Aerospace Development, , said the President ordered the temporary suspension after concerns that the new system was causing unnecessary hardship for travellers.

He explained that the government would temporarily revert to the previous payment method while officials work on a more efficient electronic solution.

According to Keyamo, the President was particularly concerned that the gridlock caused many Nigerians to miss their flights.

The government is expected to refine the cashless payment system before reintroducing it across airports nationwide.

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Airlines in Nigeria will, from January 1, 2026, resume the payment of import duties and Value Added Tax (VAT) on commercial aircraft, engines, spare parts, and air tickets – a policy reversal that ends the tax exemption introduced under the Buhari administration.

The decision was disclosed during a Business Webinar hosted by Aviation & Allied Business in partnership with the Federal Inland Revenue Service (FIRS), themed “Nigeria Tax Act (2025) & The Aviation Industry: Aviation Sector Enlightenment Initiative.”

Speaking at the event, Nkechi Umegakwe, Assistant Director of the Nigeria Revenue Service (formerly FIRS), said the government would fully implement the provisions of the Tax Reforms Act, stressing that there would be “no going back.”

She explained that, unlike the current regime where airlines enjoy waivers, all aviation operators must, from next year, remit VAT on their services, imports, and ticketing operations.

The reversal has already drawn criticism. The International Air Transport Association (IATA) faulted the policy shift, warning that Nigeria risks violating international treaties under the International Civil Aviation Organization (ICAO) and the Economic Community of West African States (ECOWAS), both of which discourage fiscal barriers that impede regional and global air transport.

The aviation industry, already grappling with high operational costs and foreign exchange shortages, is expected to feel the impact of the renewed taxation, with stakeholders warning it could drive up ticket prices and undermine Nigeria’s competitiveness as a regional aviation hub.

The post FG Scraps VAT Waiver for Airlines, Restores Taxation on Aircraft and Spare Parts appeared first on Housing TV Africa.