Lagos signs MOU with danfo unions, digital fare collection to hit four bus corridors
By Aboki Forex —
The Lagos State Government has signed a Memorandum of Understanding with two major transport unions to bring danfo buses into a regulated transport network. The agreement moves commercial bus operations along eight designated Quality Bus Corridors towards a franchise system, with the first phase covering four corridors and digital fare collection on the way.
What the agreement covers
The MoU was signed on Wednesday under the Lagos State Bus Industry Transition Programme with the Nigeria Union of Road Transport Workers (NURTW) and the Road Transport Employers Association of Nigeria (RTEAN). The government says the reform is designed to improve commuter safety, service delivery and operational efficiency while creating a more sustainable public transport industry.
Existing transport operators will not be abandoned under the reform. Commercial bus operations will gradually transition to a franchise-based system with clearly defined operational standards and a structured relationship between operators and the government.
The first phase covers four corridors currently under construction: Iju-Ishaga-Abule Egba, Ketu-Alapere-Akanimodo, Iyana-Iba-Igando-Iyana-Ipaja and Ojuelegba-Lawanson-Cele.
Digital payments and oversight
A key feature of the reform is the planned introduction of fully digital fare collection on designated routes. The system is expected to make passenger payments easier while improving transparency and reducing revenue leakages in the commercial bus sector.
The Lagos Metropolitan Area Transport Authority (LAMATA) will continue to provide regulatory oversight of bus operations along the designated routes. A cooperative governance structure will also allow transport unions to help move their members into the new franchise system.
What officials are saying
Speaking at the signing ceremony, Permanent Secretary of the Lagos State Ministry of Transportation, Olawale Musa, described the agreement as “a new beginning for public transport in Lagos State.” He said it reflects a joint commitment by government and transport stakeholders to build a safer, more efficient and sustainable public transportation system.
LAMATA Managing Director, Abimbola Akinajo, said the agreement followed more than two years of consultations, negotiations and trust-building. Discussions began more than 30 months ago to ensure that transport operators became partners in the reform rather than victims of it.
Akinajo said the arrangement could provide a model for other cities seeking to modernise public transportation while protecting the livelihoods of existing operators. “Formalization should not be construed as stifling,” she said, adding that collaboration between government and operators could produce a model replicated across Nigeria and other cities.
What it means for commuters and operators
The shift to digital payments on these corridors means commuters on affected danfo routes will no longer pay cash as the franchise system takes shape. For operators, the reform aims to cut revenue leakages and bring clearer standards, while keeping existing transport workers inside the system rather than replacing them.