LAMATA to prosecute commuters paying cash on regulated buses from August 1, 2026

The Lagos Metropolitan Area Transport Authority (LAMATA) will begin arresting and prosecuting passengers who pay cash fares on regulated bus services from August 1, 2026. The expanded enforcement targets commuters who knowingly offer cash for their journeys, not just drivers or ground staff.

Cash payments now an economic crime

LAMATA’s Head of Corporate Communication, Kolawole Ojelabi, announced the policy in a statement on Monday. The authority said cash fare collection within the regulated bus system constitutes an economic crime against the state because it undermines the integrity of the fare collection system, deprives operators of legitimate revenue, and weakens the sustainability of public transport services.

Drivers and ground staff caught collecting cash have previously been arrested, prosecuted, and in some cases jailed. From August 1, commuters who offer cash will face the same treatment.

LAMATA has urged all passengers to use only approved electronic payment channels. Cowry Cards, the official payment method for regulated bus services, can be purchased at designated bus stops as well as Blue Line and Red Line train stations. The authority also encouraged passengers to report any driver or staff demanding cash payments through its designated email and telephone channels.

Revenue leakages hurting operators

According to LAMATA, regulated bus operators have consistently raised concerns over the impact of cash fare collection. Revenue leakages from cash payments have made it increasingly difficult for operators to maintain buses and meet critical financial obligations. The leakages affect operators’ ability to procure spare parts and return faulty buses to service. They also make it harder for operators to meet staff salary obligations.

LAMATA said protecting fare revenues will enable operators to improve service delivery by restoring more buses to operation and providing safer, more reliable transport. The authority reiterated that the success of Lagos’ regulated transport system depends on the cooperation of both operators and commuters in safeguarding public resources.

Background: recent fare increases

The new enforcement comes months after the Lagos State Government approved a 13% fare increase for Bus Rapid Transit (BRT) and Bus Reform Initiative (BRI) services, which took effect on March 2, 2026. LAMATA said at the time that the adjustment followed appeals from regulated bus operators facing rising costs, including vehicle maintenance, spare parts, staff salaries, and investments in cleaner buses.

The state has periodically reviewed fares in recent years, including an 18% increase in February 2025. It also introduced temporary fare relief measures after the removal of fuel subsidies, offering a 50% discount from August to November 2023, followed by a 25% discount that remained in place, with a brief interruption, until June 3, 2024.

Cash fares still common on BRT routes

Despite LAMATA’s longstanding cashless payment policy, cash fare transactions remain common on some regulated bus services. On the Ikeja Bus Terminal–Ikorodu route, some buses stop after leaving the terminal to pick up additional passengers who pay cash fares of about N500 instead of the official N680 Cowry Card fare. These passengers are often allowed to stand, resulting in overcrowding during peak travel periods.

Nairametrics has also observed some BRT buses returning to their parks picking up passengers for cash fares, including buses travelling from Ikorodu Garage towards Maya, where commuters have paid around N400 instead of roughly N800 charged by conventional commercial buses.

These observations mirror LAMATA’s concerns that cash fare collection continues within parts of the regulated transport network, causing revenue leakages outside the state’s approved electronic fare collection system.

For commuters and Nigerian businesses, the new penalty threatens to disrupt informal payment habits and push more passengers toward official Cowry Cards, potentially improving revenue collection for operators but also raising the cost of non-compliance for anyone caught paying cash.