Lagos moves to phase danfo into franchise bus system

The Lagos State Government, the Nigeria Union of Road Transport Workers (NURTW), and the Road Transport Employers Association of Nigeria (RTEAN) have signed a Memorandum of Understanding (MoU) to transition danfo operators into a regulated public transport system under the state’s Bus Industry Transition Programme (BITP).

The development was disclosed in a statement issued by the Lagos Metropolitan Area Transport Authority (LAMATA) on Wednesday.

The agreement is aimed at integrating informal commercial transport operators, including the iconic yellow danfo buses, into a structured and modern public transport network while paving the way for a franchise-based bus operating system across Lagos.

What they are saying

LAMATA described the agreement as a major milestone in implementing the Bus Industry Transition Programme, a Lagos State Government initiative to modernise public transportation by integrating informal commercial transport operators into a regulated system.

According to the agency, the MoU provides the framework for transitioning bus operations across the state’s eight Quality Bus Corridors (QBCs) and granting bus operating franchises.

• “The two major transport unions in Lagos State—the Nigeria Union of Road Transport Workers (NURTW) and the Road Transport Employers Association of Nigeria (RTEAN)—have signed a landmark Memorandum of Understanding (MoU) to participate in the Lagos State Bus Industry Transition Programme (BITP), marking a significant milestone in the transformation of public transportation in the state,” the statement read in part.
• “The BITP is a Lagos State Government initiative being implemented by the Lagos Metropolitan Area Transport Authority (LAMATA) to integrate informal commercial transport operators, including the iconic yellow danfo buses, into a regulated, structured, and modern public transport network.”

The agreement was signed by Permanent Secretary, Ministry of Transportation, Mr. Olawale Musa, LAMATA Managing Director, Mrs. Abimbola Akinajo, and representatives of NURTW and RTEAN.

How the new system will work

Under the new model, transport unions will adopt a cooperative governance structure to facilitate the transition of their members into franchise operators.

• Fare collection will move to a fully digital payment system, while LAMATA will retain regulatory oversight of bus operations.
• The MoU establishes the guiding principles for implementing the BITP.
• It also provides the framework for granting bus operating franchises under the new transport system.
• LAMATA said four Quality Bus Corridors are under construction to support the rollout, including Iju Ishaga–Abule Egba, Ketu–Alapere–Akanimodo, Iyana Iba–Igando–Iyana Ipaja, and Ojuelegba–Lawanson–Cele.

The programme will begin on selected corridors before expanding across the state.

Stakeholders react

LAMATA Managing Director, Mrs. Abimbola Akinajo, said the agreement followed more than 30 months of engagement with the transport unions and would position Lagos as a model for cities seeking to modernise public transport.

• “Formalization should not be construed as strangulation. When we collaborate, the result will be formidable and capable of being replicated across other parts of Nigeria and in cities around the world that are seeking to formalize their public transport operations,” she said.
• Permanent Secretary, Ministry of Transportation, Mr. Olawale Musa, described the MoU as “a new beginning for public transport in this state.”

He said the agreement reflects the commitment of the state government and transport stakeholders to building a safer, more efficient, and sustainable public transport system.

The BITP is expected to improve service quality, strengthen regulatory oversight, promote digital fare payments, and create a more sustainable public transport system.

What you should know

Lagos State has, over the years, expanded regulated public transport through the Bus Rapid Transit (BRT) network, First and Last Mile buses, and other government-backed services, providing millions of commuter trips across the state.

• However, these services have not been sufficient to meet the mobility needs of the state’s growing population, leaving many residents reliant on informal operators, particularly danfo and Korope buses.
• To improve safety standards and strengthen regulation, the state has introduced a series of reforms targeting informal transport operators.
• In July 2024, Lagos announced that only danfo buses meeting Vehicle Inspection Service (VIS) standards would be permitted to operate as mid-capacity buses on the Lekki-Epe corridor from October 1, 2024.
• The reforms were expanded in December 2025 with the launch of the Lekki-Epe Bus Reform Scheme, which introduced regulated bus services and cashless fare payments through the Cowry Card.
• In February 2026, the government declared the Lekki-Epe carriageway out of bounds for informal transport operators, restricting the corridor to participants in the Bus Reform Scheme.

Despite those measures, many commuters still rely on poorly maintained and largely unregulated commercial buses, while informal operators continue to operate on parts of the Lekki-Epe corridor, highlighting the challenges of enforcing earlier reforms.

The newly signed MoU takes a different approach by bringing transport unions into the reform process and transitioning their members into a regulated, franchise-based public transport system.