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 through the Bus Industry Transition Programme (BITP).

According to a statement issued by the Lagos Metropolitan Area Transport Authority (LAMATA) on Wednesday, the MoU provides a common framework for the transition of bus operations across the state’s eight Quality Bus Corridors (QBCs) and forms the basis for the granting of bus operating franchises under the new system.

LAMATA noted that under this new operational model, transport unions will be structured using a cooperative societal governance model to manage union members’ transition into franchise operators, fare collections will adopt a fully digital payment system to streamline revenues, and the authority will maintain strict regulatory oversight across all routes.

The agreement was signed by Samson Ajala Adepeju, Lagos state chairman of RTEAN, and Bolaji Kawojue, RTEAN secretary, Mustapha Adekunle Sego and Usman Teslimfor, secretary of NURTW, while Olawale Musa, permanent secretary, Lagos state ministry of transportation, and Abimbola Akinajo, managing director of LAMATA, signed on behalf of the Lagos State Government.

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Describing the agreement as a new beginning for public transport in the state, Musa said the MoU demonstrates the commitment of the state government and transport stakeholders to building a safer, more efficient, and sustainable public transport system.

The BITP is an initiative implemented by LAMATA to integrate informal commercial transport operators, including the iconic yellow danfo buses, into a regulated, structured, and modern public transport network.

Four key Quality Bus Corridors (QBCs) currently under construction to launch this integrated system include Iju-Ishaga–Abule Egba, Ketu–Alapere–Akanimodo, Iyana-Iba–Igando–Iyana-Ipaja, and Ojuelegba–Lawanson–Cele.

Speaking at the signing ceremony, Akinajo highlighted the significance of the agreement, noting that the journey to its realisation began more than 30 months ago through sustained engagement and collaboration with the transport unions.

She said the successful integration of the formal and informal transport sectors in Lagos has the potential to become a global reference point for cities seeking to modernise their public transport systems while ensuring the inclusion of existing operators.

“This will become a baseline for other cities because it will be a verifiable example of a handshake between government and the unions.

“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.

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Juliet Onyema is a transport journalist who reports on Nigeria’s transport and automobile industry. She covers emerging Electric Vehicles (EVs), ranging from adoption to usage, automobile firms and transport policies which affect them, and also recurring trends affecting commuters’ mobility interstate and intrastate.