The Lagos State Government has taken a major step towards transforming commercial bus operations by signing a Memorandum of Understanding (MoU) with the Nigeria Union of Road Transport Workers (NURTW) and the Road Transport Employers Association of Nigeria (RTEAN).
The agreement is part of the state’s Bus Industry Transition Programme (BITP), an initiative aimed at integrating informal transport operators, including the popular yellow danfo buses, into a regulated and modern public transportation system.
According to the Lagos Metropolitan Area Transport Authority (LAMATA), the deal provides the framework for transitioning commercial bus operators into a franchise-based system across Lagos’ eight Quality Bus Corridors (QBCs).
LAMATA described the agreement as a major milestone in efforts to reform the transport sector by creating a more organised network with improved safety standards, better regulation and enhanced commuter experience.
“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 agency said.
Under the new arrangement, transport unions will adopt a cooperative structure that will allow their members to transition into recognised franchise operators.
The programme will also introduce a fully digital fare collection system, while LAMATA will oversee regulation and monitoring of bus operations.
The transition will begin on selected routes before expanding across the state. Four Quality Bus Corridors currently being developed to support the rollout include:
Iju Ishaga–Abule Egba
Ketu–Alapere–Akanimodo
Iyana Iba–Igando–Iyana Ipaja
Ojuelegba–Lawanson–Cele.
LAMATA Managing Director Abimbola Akinajo said the agreement followed more than 30 months of discussions with transport unions and was designed to create a model that could inspire similar reforms beyond Lagos.
“Formalisation 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,” Akinajo said.
The Permanent Secretary of the Lagos State Ministry of Transportation, Olawale Musa, described the agreement as “a new beginning for public transport in this state,” adding that it reflects a shared commitment to building a safer, more efficient and sustainable transport system.
The BITP is expected to improve service delivery, reduce operational disorder, expand cashless payments and strengthen government oversight of the sector.
The reform comes as Lagos continues to face growing transport pressure from its rapidly expanding population.
While government-backed systems such as the Bus Rapid Transit (BRT) network and First and Last Mile buses have expanded mobility options, many residents still rely heavily on informal operators, including danfo and korope buses.
The state has introduced several measures in recent years to improve standards in the sector, including enforcing vehicle inspection requirements, expanding cashless payment systems and restricting non-compliant operators on key routes.
