Lagos signs landmark agreement to transition danfo operators into franchise bus system
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 integrate informal danfo operators into a regulated, franchise-based public transport network.
The agreement, announced by the Lagos Metropolitan Area Transport Authority (LAMATA) on Wednesday, forms part of the Bus Industry Transition Programme (BITP), a state initiative designed to absorb thousands of informal commercial bus operators into a structured and modernised transport framework.
Under the new model, transport unions will adopt a cooperative governance structure to facilitate the transition of their members into licensed franchise operators. Fare collection will move to a fully digital system, while LAMATA will retain regulatory oversight of bus operations across the state’s eight Quality Bus Corridors (QBCs).
The MoU was signed by the Permanent Secretary of the Ministry of Transportation, Mr. Olawale Musa; LAMATA Managing Director, Mrs. Abimbola Akinajo; and representatives of NURTW and RTEAN. LAMATA noted that the agreement followed more than 30 months of engagement with the unions.
“Formalisation should not be construed as strangulation,” Akinajo said. “When we collaborate, the result will be formidable—and capable of being replicated across Nigeria and in cities around the world seeking to formalise their public transport operations.”
Musa described the MoU as “a new beginning for public transport in this state,” affirming the government’s commitment to building a safer, more efficient, and sustainable system.
The transition will begin on four Quality Bus Corridors currently under construction: Iju Ishaga–Abule Egba, Ketu–Alapere–Akanimodo, Iyana Iba–Igando–Iyana Ipaja, and Ojuelegba–Lawanson–Cele. The programme will subsequently expand to other corridors across the state.
The BITP represents the most comprehensive attempt to date to formalise Lagos’s informal bus sector. Previous efforts, including the 2024 Lekki-Epe corridor restrictions and the introduction of cashless fare payments via the Cowry Card, have faced enforcement challenges, with many commuters still relying on poorly maintained and largely unregulated buses.
This new approach, by contrast, brings transport unions directly into the reform process, aiming to transition their members into a regulated system rather than imposing rules from the outside.
The initiative is expected to improve service quality, strengthen regulatory oversight, and promote digital fare collection. Whether it delivers on those promises will depend on implementation, but for now, the agreement signals a decisive shift away from the danfo era and towards a more orderly, accountable public transport system for Lagos.