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Lagos Signs MoU with Transport Unions to Modernise Bus Sector

byStephen Abebor
August 6, 2026
in Economy, Business
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Lagos Signs MoU with Transport Unions to Modernise Bus Sector
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The Lagos State Government, through the Lagos Metropolitan Area Transport Authority (LAMATA) and the Ministry of Transportation, has signed a Memorandum of Understanding (MoU) with the National Union of Road Transport Workers (NURTW) and the Road Transport Employers Association of Nigeria (RTEAN) to launch the Bus Industry Transition Programme (BITP), a major reform aimed at modernising and formalising the state’s commercial bus sector.

The agreement was signed on Wednesday at the LAMATA headquarters in Lagos. Representing the state government were the Permanent Secretary of the Ministry of Transportation, Olawale Musa, on behalf of Commissioner for Transportation Oluwaseun Osiyemi, and LAMATA Managing Director, Engr. Abimbola Akinajo. The transport unions were represented by NURTW Lagos State Chairman Mustapha Adekunle and Secretary Usman Teslim, as well as RTEAN Lagos State Chairman Samson Adepeju and Secretary Bolaji Kawojue.

The BITP is designed to transition Lagos’ predominantly informal “danfo” bus operations into a regulated, franchise-based public transport system. Under the programme, existing operators will be encouraged to form cooperative societies or other approved business entities to bid for route franchises that will operate under clearly defined service standards.

The reform also provides for the introduction of digital fare collection, improved regulatory oversight, and operational standards aimed at enhancing safety, efficiency, transparency and the overall commuter experience.

The first phase of implementation will focus on four Quality Bus Corridors currently under development: Iju-Ishaga–Abule Egba, Ketu–Alapere–Akanimodo, Iyana-Iba–Igando–Iyana-Ipaja, and Ojuelegba–Lawanson–Cele.

Speaking at the signing ceremony, Akinajo described the agreement as a significant milestone in the state’s transport reform efforts, noting that it followed extensive engagement with key stakeholders. She stressed that the objective is to integrate existing operators into a more organised transport system rather than displace them.

Commissioner for Transportation Oluwaseun Osiyemi, represented by Musa, said the initiative would help reshape public transportation in Lagos by promoting safer, more reliable and efficient bus services. Leaders of both NURTW and RTEAN welcomed the agreement and pledged their support for the programme while urging the government to ensure the transition protects the livelihoods of their members.

The Lagos State Government said the BITP forms part of its broader strategy to reduce traffic congestion, improve commuter safety and build a more efficient and sustainable public transportation network for residents.

Tags: BITPBus Industry Transition ProgrammeDanfo busesfranchise bus systemLagos State GovernmentLagos transport reformLAMATANigeria transport newsNURTWpublic transportation NigeriaQuality Bus CorridorsRTEAN
Stephen Abebor

Stephen Abebor

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