Lagos State has approved a proposal for a bailout for the bus operating companies within the state. The state also approved the increase of N100 for fares of Bus Rapid Transit (BRT) buses for all routes.
This was disclosed by Governor Babajide Sanwo-Olu through Kolawole Ojelabi, assistant director, corporate communication of Lagos Metropolitan Area Transport Authority (LAMATA).
According to Ojelabi, the fare increase, which will take effect from July 13, 2022, was introduced due to the rising cost of diesel and the high number of buses out of operation due to the lack of spare parts.
What Lagos is saying about the bailout, price hike
He stated, “To sustain the operations of regulated bus services in Lagos State, the State Governor, Mr. Babajide Sanwo-Olu, has approved a flat rate increase by N100 in bus fares for all Bus Rapid Transit (BRT) and standard routes.
“The increase, which will come into effect on Wednesday, 13 July 2022, is aimed at ensuring sustainability of the BRT and standard route schemes.
“Operations of the transport scheme, of late, had been hampered due to rising cost of inputs required for sustainable service offering and the attendant high number of buses out of operation as a result of lack of spare parts.
“For instance, the exponential increase in the pump price of diesel from N187 to N830/litre between August 2020 and June 2022, had greatly affected optimal performance of the bus operating companies leading to the withdrawal of buses from operation and longer waiting time at bus stations.
“The governor in consenting to the fare increase also approved a proposal for a bailout for the bus operating companies in other to cushion the effect of the harsh operating environment and safeguard private partnership investment and forestall the demise of formalized bus operations in the state.
“With the increase, a bus ride from Ikorodu – TBS will now cost N600 from N500 while Berger to Ajah is now N700, up from N600. Oshodi to Abule Egba will cost N450 from N350 and Abule-Egba-CMS-Obalende will attract a fare of N600.”
In case you missed it
Earlier, Nairametrics reported that the Lagos State Government and transportation stakeholders, which include the National Union of Road Transport Workers (NURTW) and Road Transport Employers Association of Nigeria (RTEAN) introduced and signed a consolidated levy of N800 daily for transporters in the informal transport sector in the state.
The harmonized levy which is outside the normal statutory dues collected by these unions was introduced in order, not to over-burden transporters with exorbitant levies.
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