The Lagos State Government forfeited N500 million in monthly revenue to sustain its 25% transport fare reduction program, a social intervention aimed at easing commuting costs.
The initiative lowered fares on Bus Rapid Transit (BRT), Bus Rapid Intervention (BRI), Metro Rail, and Water Transport services, providing financial relief to millions of residents.
This was detailed in the Lagos Economic Development Update (LEDU) 2025 report, published by the Economic Intelligence Department of the Lagos State Ministry of Economic Planning and Budget.
According to the report, 18.54 million commuters benefitted from the 25% subsidy on BRT and BRI services in 2024, while an additional 708,427 passengers received fare reductions on metro rail and water transport, further alleviating transportation costs across the state.
“In the transport sector, the Ministry of Transportation, through the Lagos Metropolitan Area Transport Authority (LAMATA), implemented a 25 percent fare reduction on Bus Rapid Transit (BRT) and Bus Rapid Intervention (BRI) services. This initiative eased transportation cost burdens for Lagos residents, benefiting 16.84 million people between January and December 2024. Likewise, LAMATA introduced another programme offering a 25 percent reduction in transport fees, which supported 708,427 residents. Collectively, these transport-related social assistance programmes benefitted a total of 18.54 million Lagos residents during the year,” the report read in part.
It added, “More so, a 25% reduction on transport services for the State Public Transport (BRT, Train, and Ferry) was introduced to reduce the transport cost of the state residents. This transport palliative cost implies a foregone monthly revenue of N500 million.”
The report highlighted that the transport fare reduction, alongside other social interventions by the state government, played a key role in cushioning the impact of economic reforms, supporting vulnerable households, and easing inflationary pressures on food and transport costs in Lagos.
What you should know
Since 2023, the Lagos State Government has periodically adjusted public transport fares to cushion the impact of economic challenges on commuters.
- A 50% fare rebate was introduced on August 2, 2023, following the removal of fuel subsidies but ended on November 6, 2023.
- To maintain relief, a 25% discount took effect on November 7, 2023, lasting until January 28, 2024.
- The government reinstated the 25% reduction in February 2024, sustaining it until June 3, 2024, when it was suspended.
These interventions were designed to ease commuting costs while balancing affordability with transport system sustainability.
