Cooperative Governance and Digital Fares

The Lagos State Government, the Nigeria Union of Road Transport Workers (NURTW), and the Road Transport Employers Association of Nigeria (RTEAN) have signed a Memorandum of Understanding (MoU). This agreement aims to transition informal commercial transport operators, including yellow danfo buses, into a regulated public transport system under the state's Bus Industry Transition Programme (BITP).

The agreement was signed by the Permanent Secretary of the Ministry of Transportation, Mr. Olawale Musa, the Managing Director of the Lagos Metropolitan Area Transport Authority (LAMATA), Mrs. Abimbola Akinajo, and union representatives. Under the new model, transport unions will adopt a cooperative governance structure to facilitate the transition of their members into franchise operators. Fare collection will move to a fully digital payment system, while LAMATA retains regulatory oversight.

Expanding Quality Bus Corridors

The MoU provides the framework for granting bus operating franchises across the state's eight Quality Bus Corridors (QBCs). LAMATA confirmed that four of these corridors are currently under construction. These include Iju Ishaga–Abule Egba, Ketu–Alapere–Akanimodo, Iyana Iba–Igando–Iyana Ipaja, and Ojuelegba–Lawanson–Cele.

LAMATA Managing Director, Mrs. Abimbola Akinajo, stated that the agreement followed more than 30 months of engagement with the transport unions. She emphasized that formalization should not be construed as strangulation, noting that the collaboration will position Lagos as a model for other global cities.

Evolution of Lagos Transport Reforms

Lagos State has steadily expanded its regulated public transport through the Bus Rapid Transit (BRT) network and First and Last Mile buses. However, these services have not fully met the needs of the growing population, leaving many residents reliant on informal operators. To address this, the state has introduced progressive reforms targeting informal transport operators over the last few years.

In July 2024, the state announced that only danfo buses meeting Vehicle Inspection Service (VIS) standards could operate on the Lekki-Epe corridor from October 1, 2024. This was followed in December 2025 by the launch of the Lekki-Epe Bus Reform Scheme, which introduced cashless payments via the Cowry Card. By February 2026, the government declared the Lekki-Epe carriageway completely out of bounds for informal transport operators.