TAP processes N3 billion monthly in Lagos transport fares, Afolabi Olamide reveals

Lagos’ regulated public transport network, overseen by the Lagos Metropolitan Area Transport Authority (LAMATA), uses electronic fare payment for commuters travelling on its regulated services.

Cowry, a digital payment platform operated by Touch and Pay Technologies (TAP), enables fare payments on regulated buses and the Blue and Red rail lines, while capturing transaction data across the network.

In an exclusive interview with Nairametrics, Afolabi Olamide, co-founder and chief executive officer of TAP, provides insights into the scale of fare payments processed through Cowry, the number of commuters using the platform and the growth in passenger transactions over the past two years.

He also discusses the busiest bus corridors and peak travel periods, the distribution of transactions across buses and rail services, and whether the expansion of rail transport has affected passenger demand on bus routes.

The conversation further examines how electronic fare collection compares with cash-based payments in revenue reconciliation and leakage, what Cowry’s records reveal about commuting patterns in Lagos, and how passengers respond to fare adjustments across the regulated public transport network.

Nairametrics: How much in public transport fares does TAP currently process through Cowry in Lagos in an average month, and how has that value changed as transaction volumes have grown?

Afolabi Olamide: TAP currently processes an average of N3 billion in public transport fare revenue through Cowry each month, representing a 60% increase compared with the level recorded two years ago. This growth reflects the expanding use of Cowry across Lagos’ regulated public transport network, supported by rising transaction volumes and fare adjustments over the period.

Nairametrics: How many passenger trips are currently paid for with Cowry across Lagos’ regulated public transport system on an average day and month, and how does that compare with the volume TAP was processing two or three years ago?

Afolabi Olamide: Cowry currently processes over 500,000 passenger trips daily. Compared with the volumes TAP was processing two to three years ago, transaction volumes have recorded average growth of approximately 50% over time, reflecting the steady expansion in the adoption of Cowry across the public transport network.

Nairametrics: How many unique commuters currently use Cowry on Lagos’ regulated public transport network, and how frequently does the average active user make Cowry-paid trips?

Afolabi Olamide: Cowry currently serves an average of 2 million unique commuters across Lagos’ regulated public transport network.

On average, active users make Cowry-paid trips at least twice a week, demonstrating consistent use of the payment system for their daily and routine transportation needs.

Nairametrics: Can you break down Cowry’s current passenger transactions by regulated buses, the Blue Line, the Red Line and water transport, and which of these modes has recorded the fastest growth?

Afolabi Olamide: Cowry’s monthly passenger transactions are distributed across the transport modes as follows:

• Regulated buses: Over 5 million passenger trips monthly.
• Blue Line: Approximately 500,000 passenger trips monthly.
• Red Line: Approximately 100,000 passenger trips monthly.

The Blue Line has recorded the fastest growth, with passenger volumes increasing by over 170% in the last two years, reflecting the rapid growth in the adoption of Cowry for rail transport payments.

Nairametrics: What do TAP’s Cowry records show about passenger demand on Lagos’ regulated bus network, including the busiest periods of the day and the strongest-performing corridors, and how have those patterns changed over time?

Afolabi Olamide: TAP’s Cowry transaction records indicate that passenger demand across Lagos’ regulated bus network remains consistently high, particularly along major commuting corridors such as Ikorodu, Oshodi, Obalende/TBS and Abule-Egba.

Demand typically peaks during the morning rush hour, between 6:00 a.m. and 8:00 a.m., and the evening peak, between 4:00 p.m. and 6:00 p.m., reflecting the movement of commuters to and from work and other daily activities.

Through its extensive transaction data, TAP provides valuable insights into peak demand periods and corridor-level activity. These insights support more informed planning and operational decision-making across the public transport network. Continued monitoring of Cowry transaction trends also enables TAP to identify emerging demand patterns over time.

Nairametrics: Since the Blue and Red Lines became operational, have Cowry records shown any measurable change in passenger volumes on bus corridors served by those rail lines, and what does the data suggest about passengers shifting between bus and rail?

Afolabi Olamide: TAP’s Cowry records show that bus passenger volumes along corridors served by the Blue and Red Lines have remained relatively stable, with no significant decline observed. This suggests that bus services continue to play an important role despite the expansion of rail transport.

The choice between bus and rail depends on factors such as destination, convenience, travel time and personal preference. Both modes continue to serve commuters across Lagos, with each offering distinct options for meeting passengers’ transportation needs.

Nairametrics: From TAP’s experience processing electronic fares, what changes have you observed in revenue reconciliation and leakage compared with cash-based collection, and are there measurable improvements or savings you can share?

Afolabi Olamide: Electronic fare collection through Cowry has significantly improved revenue reconciliation by providing a digital record of every transaction processed. This allows TAP to better track passenger transactions, verify revenue collected and identify discrepancies with greater accuracy and transparency.

Revenue leakage has also been substantially reduced compared with cash-based collection, where it is often difficult to reconcile passenger volumes with the actual revenue generated. While isolated cases of unauthorised cash collection may still occur, these are strongly discouraged and treated as serious operational violations.

Overall, Cowry has strengthened revenue accountability, improved transaction visibility and enhanced the reliability of revenue reporting. These improvements provide a more transparent and auditable system for monitoring public transport fare collection.

Nairametrics: After processing Cowry transactions across Lagos’ public transport system for several years, what is the most significant thing the data has revealed about how Lagosians travel that TAP did not previously know, and can you give a specific example?

Afolabi Olamide: One of the most significant insights from Cowry’s transaction data is the ability to see passenger movement patterns more clearly, including when demand peaks and which transport corridors experience the highest activity. Previously, cash-based collection made it difficult to accurately link passenger volumes to revenue and identify these patterns with the same level of detail.

For example, our records consistently show strong passenger demand during the morning peak hours of 6:00 a.m. to 8:00 a.m. and the evening peak of 4:00 p.m. to 6:00 p.m., particularly along major corridors such as Ikorodu, Oshodi and Abule-Egba. These insights help TAP build a clearer picture of commuting patterns and provide transport stakeholders with valuable data to support service planning and operational decisions.

Nairametrics: When fares increase or decrease on Lagos’ regulated public transport services, what changes does TAP see in commuter payment behaviour, and can you provide a specific example of how passenger volumes or Cowry transaction patterns changed following a fare adjustment?

Afolabi Olamide: TAP’s experience suggests that commuters generally adapt to fare adjustments on Lagos’ regulated public transport network, particularly when changes are communicated in advance. While some passengers may initially express dissatisfaction with fare increases, payment patterns tend to stabilise as commuters adjust to the new fares.

One factor supporting continued usage is the relative affordability of regulated transport compared with alternatives such as danfo buses. This helps sustain demand even when fares change. Overall, commuter responses to fare adjustments highlight the importance of clear communication, affordability and reliable service in maintaining passenger confidence and consistent use of Cowry.