Lagos Introduces Digital Fare Payment for Danfo Buses on 4 Quality Bus Corridors
- Lagos State Government signed an MOU with two major transport unions to bring danfo buses into a regulated transport network
- The Lagos State Bus Industry Transition Programme will cover four bus corridors currently under construction in its first phase
- Fare collection on designated routes will shift to a fully digital payment system under the new framework
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Pascal Oparada is a journalist with Legit.ng, covering technology, energy, stocks, investment, and the economy for over a decade.
The Lagos State Government has taken a major step towards restructuring commercial bus transportation after signing a Memorandum of Understanding (MoU) with two of the state’s major transport unions.
The agreement with the Nigeria Union of Road Transport Workers (NURTW) and the Road Transport Employers Association of Nigeria (RTEAN) is expected to pave the way for the formal integration of Lagos’ popular yellow buses, commonly known as danfos, into a more organised and regulated transport system.

Source: Getty Images
The government said the agreement, signed on Wednesday under the Lagos State Bus Industry Transition Programme, is designed to improve commuter safety, service delivery and operational efficiency while creating a more sustainable public transport industry.
Importantly, the state said existing transport operators would not be abandoned under the reform.
Danfo operations to move into franchise system
Under the new framework, commercial bus operations along eight designated Quality Bus Corridors will gradually transition to a franchise-based system.
The model is expected to introduce clearly defined operational standards and create a more structured relationship between transport operators and the government.
The first phase will cover four corridors currently under construction: Iju-Ishaga-Abule Egba, Ketu-Alapere-Akanimodo, Iyana-Iba-Igando-Iyana-Ipaja and Ojuelegba-Lawanson-Cele.
The government said the arrangement will also establish a cooperative governance structure that allows transport unions to help move their members into the new franchise system.
Digital payments coming to selected routes
Another major feature of the reform is the planned introduction of fully digital fare collection.

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According to a Punch report, the system is expected to make passenger payments easier while improving transparency and reducing revenue leakages within the commercial bus sector.
The Lagos Metropolitan Area Transport Authority (LAMATA) will continue to provide regulatory oversight of bus operations along the designated routes.
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 the agreement reflects a joint commitment by the government and transport stakeholders to build a safer, more efficient and sustainable public transportation system.
Government promises operators will not be pushed aside
LAMATA Managing Director, Abimbola Akinajo, said the agreement followed more than two years of consultations, negotiations and trust-building between the government and transport unions.
According to her, 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.

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Source: Getty Images
She stressed that formalising the sector should not mean shutting out transport workers.
“Formalization should not be construed as stifling,” she said, adding that collaboration between government and operators could produce a model that could be replicated across Nigeria and other cities around the world.
The development marks another major step in Lagos’ long-running effort to move its vast informal transport sector towards a more regulated system while retaining the operators and workers who have powered the city’s public transportation network for decades.
Lagos plans special plate number for PWDs
Legit.ng earlier reported that Governor Babajide Olusola Sanwo-Olu-led Lagos State government is working towards introducing special vehicle number plates for persons with disabilities, with two key government agencies meeting to map out how the scheme will work.
The Lagos State Office for Disability Affairs (LASODA) paid a courtesy visit to the Lagos State Motor Vehicle Administration Agency (MVAA) to explore how both bodies could collaborate on designing and rolling out the dedicated vehicle identification system.
Source: Legit.ng
