By Esther Olaoluwa |
The Lagos State Government has signed a Memorandum of Understanding (MoU) with the Nigeria Union of Road Transport Workers (NURTW) and the Road Transport Employers Association of Nigeria (RTEAN) to transition commercial bus operators, including danfo drivers, into a regulated and structured public transport system.
The agreement, signed under the state’s Bus Industry Transition Programme (BITP), is aimed at integrating informal transport operators into a franchise-based system to improve public transport services across Lagos.
The development was announced by the Lagos Metropolitan Area Transport Authority (LAMATA) in a statement issued on Wednesday.
The MoU provides a framework for transitioning bus operations across the state’s eight Quality Bus Corridors and introducing bus operating franchises for transport operators.
How the New System Will Work
Under the programme, transport unions will adopt a cooperative structure to help transition their members into franchise operators.
The new system will also introduce digital fare collection, while LAMATA will retain regulatory oversight of bus operations.
The state government said the programme would begin on selected corridors before expanding to other parts of Lagos.
Four Quality Bus Corridors are currently under construction to support the rollout. They include Iju Ishaga–Abule Egba, Ketu–Alapere–Akanimodo, Iyana Iba–Igando–Iyana Ipaja and Ojuelegba–Lawanson–Cele.
LAMATA said the MoU establishes the guiding principles for implementing the BITP and provides the framework for granting bus operating franchises.
LAMATA, Transport Ministry Explain Reform
LAMATA Managing Director, Abimbola Akinajo, said the agreement followed more than 30 months of engagement with the transport unions.
She said the partnership would support the formalisation of public transport operations and could position Lagos as a model for other cities seeking to reform informal transport systems.
“Formalization should not be construed as strangulation. When we collaborate, the result will be formidable and capable of being replicated across other parts of Nigeria and in cities around the world that are seeking to formalize their public transport operations,” Akinajo said.
Permanent Secretary, Lagos State Ministry of Transportation, Olawale Musa, described the agreement as “a new beginning for public transport in this state.”
He said the partnership demonstrated the commitment of the government and transport stakeholders to developing a safer, more efficient and sustainable public transport system.
What the Reform Means for Commuters
The Bus Industry Transition Programme is expected to improve service standards, strengthen government oversight of commercial bus operations and increase the use of digital payments.
The reform also seeks to address some of the challenges associated with informal public transport, including poor regulation and inconsistent service standards.
Lagos has expanded regulated transport services through initiatives such as the Bus Rapid Transit (BRT) network and First and Last Mile buses. However, many residents still depend on danfo and Korope buses for daily transportation.
The state has introduced several reforms in recent years to bring informal operators under greater regulation.
In July 2024, Lagos announced that only danfo buses that met Vehicle Inspection Service standards would be allowed to operate as mid-capacity buses on the Lekki-Epe corridor.
The government later launched the Lekki-Epe Bus Reform Scheme in December 2025, introducing regulated bus services and cashless fare payments through the Cowry Card.
In February 2026, the state government restricted informal transport operators from the Lekki-Epe carriageway, limiting the corridor to participants in the bus reform scheme.
The latest agreement brings NURTW and RTEAN directly into the transition process, with their members expected to move from informal operations into a regulated, franchise-based transport system as the BITP is rolled out across Lagos.
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