The Lagos State Government has signed a Memorandum of Understanding (MoU) with two major transport unions to formally integrate the state's popular yellow buses, known as danfos, into a regulated transport network. The agreement, signed under the Lagos State Bus Industry Transition Programme, will see the introduction of fully digital fare payment on four designated Quality Bus Corridors in its first phase.
Key Details of the MoU
The MoU was signed with the Nigeria Union of Road Transport Workers (NURTW) and the Road Transport Employers Association of Nigeria (RTEAN) on Wednesday. The government stated that the agreement is designed to improve commuter safety, service delivery, and operational efficiency while creating a more sustainable public transport industry.
According to a Punch report, the digital fare collection system will make passenger payments easier, improve transparency, and reduce revenue leakages within the commercial bus sector. The Lagos Metropolitan Area Transport Authority (LAMATA) will continue to provide regulatory oversight along the designated routes.
Franchise System and Covered Corridors
Under the new framework, commercial bus operations along eight designated Quality Bus Corridors will gradually transition to a franchise-based system. This model introduces clearly defined operational standards and creates 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. The arrangement also establishes a cooperative governance structure allowing transport unions to help move their members into the new system.
Government and Union Reactions
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 emphasized that the agreement reflects a joint commitment 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, with discussions beginning over 30 months ago. She stressed that formalizing the sector should not mean shutting out transport workers: “Formalization should not be construed as stifling,” she said, adding that collaboration could produce a model replicable across Nigeria and other cities.
Impact on Operators and Commuters
The government assured that existing transport operators will not be abandoned under the reform. The move aims to retain the operators and workers who have powered Lagos's public transportation network for decades while modernizing the system. Commuters will benefit from easier payments and improved service delivery, while operators gain from reduced revenue leakages and clearer operational standards.
This development marks another major step in Lagos's long-running effort to move its vast informal transport sector towards a more regulated system. The state is also working on introducing special vehicle number plates for persons with disabilities, as reported earlier, with LASODA and MVAA collaborating on the scheme.
