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Digitising public payments: Lessons from FAAN’s cashless reform, By Shona O Oluwatola

Naija News • 1h ago
Digitising public payments: Lessons from FAAN’s cashless reform, By Shona O Oluwatola
**"Nigeria's Leap into a Cashless Future: Lessons from FAAN's Digital Payment Reform"** As we step into the digital age, Nigeria is witnessing a significant shift in the way public services are delivered. The transition to a cashless system is not without its hiccups, but it promises long-term benefits in transparency, efficiency, and revenue integrity. A recent experiment by the Federal Airports Authority of Nigeria (FAAN) has provided valuable insights into the challenges and opportunities of this shift. In the past few months, passengers at Lagos and Abuja airports have been experiencing a new reality - a cashless payment system. While it's commendable that FAAN is pushing the frontiers of digital governance, the rollout has been marred by operational strain. Long queues, frustrated drivers, and delayed electronic transfers have been the unfortunate consequences of this transition. However, it's essential to view this experience through the lens of a broader national agenda. FAAN's cashless initiative is part of a larger effort to strengthen transparency, improve accountability, and boost internally generated revenue. With ambitious targets of increasing revenue by 50% and 75% in the short term, and tripling it within a year, the future looks promising. So, what can we learn from this experience? Firstly, effective communication is key. While FAAN invested in publicity ahead of the rollout, it's essential to assess the readiness of the public to adapt to the new system. Providing data on pre-registration levels, card activations, or digital payment adoption prior to the transition would have served as early indicators of system readiness. Secondly, managing transition deliberately is crucial. Temporarily, the disruptions may seem daunting, but with careful planning and documentation of lessons learned, public institutions can minimize friction and preserve reform momentum. This is a lesson that will resonate beyond FAAN, to local governments, ministries, departments, and agencies embarking on similar reforms. As Nigeria takes its next steps into a cashless future, it's essential to strike a balance between the benefits of digital governance and the challenges of transition. By learning from FAAN's experience and applying these lessons across the board, we can ensure a smoother ride towards a more efficient, transparent, and accountable public service delivery system.
Source: Original Article. AI-enhanced version.