The Lagos State Government has signed a Memorandum of Understanding with two major transport unions in the state, the Nigeria Union of Road Transport Workers and the Road Transport Employers Association of Nigeria, to formally regulate public bus operations, paving the way for the integration of the popular yellow buses, commonly referred to as ‘danfo’, into a modern, structured transport system.

The government said the agreement, signed on Wednesday under the Lagos State Bus Industry Transition Programme, will transform commercial bus operations, improve commuter safety, enhance service delivery and create a more sustainable public transport industry while ensuring that existing operators are not left behind.

Speaking at the signing ceremony, the Permanent Secretary, Lagos State Ministry of Transportation, Mr Olawale Musa, described the agreement as “a new beginning for public transport in Lagos State.”

According to him, the Memorandum of Understanding represents a shared commitment between the government and transport operators to fundamentally reshape public transportation across Africa’s largest city.

“This agreement demonstrates the commitment of the Lagos State Government and transport stakeholders to building a safer, more efficient and sustainable public transport system,” Musa said.

He added that the agreement promises a future where journeys become more organised, predictable and secure.

The Lagos State Bus Industry Transition Programme is a government-led reform being implemented by LAMATA to integrate informal transport operators into a regulated public transport network without excluding those who have sustained the sector for decades.

The agreement was signed on behalf of RTEAN by its Lagos State Chairman, Samson Adepeju, and Secretary, Bolaji Kawojue, while the NURTW delegation was led by the state Chairman, Mustapha Adekunle, alongside the union’s Secretary, Usman Teslim.

Representing the Lagos State Government were the Permanent Secretary of the Ministry of Transportation and the Managing Director of LAMATA, Mrs Abimbola Akinajo.

Under the new framework, commercial bus operations across the state’s eight designated Quality Bus Corridors will gradually transition into a franchise-based system governed by clearly defined operational standards.

The agreement also introduces a cooperative governance structure through which transport unions will manage the transition of their members into franchise operators.

Additionally, fare collection will move to a fully digital payment system aimed at improving transparency, reducing revenue leakages and simplifying passenger payments, while LAMATA will retain regulatory oversight of bus operations across designated routes.

The first phase of the programme will cover four Quality Bus Corridors currently under construction: Iju-Ishaga-Abule Egba, Ketu-Alapere-Akanimodo, Iyana-Iba-Igando-Iyana-Ipaja and Ojuelegba-Lawanson-Cele.

Managing Director of LAMATA, Mrs Abimbola Akinajo, said the signing marked the culmination of more than two years of painstaking dialogue and trust-building between government officials and transport unions.

She revealed that the journey to the agreement began over 30 months ago through continuous engagement, consultations and negotiations designed to ensure that transport operators become active partners in the reform process rather than casualties of it.

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

She noted that if successfully implemented, Lagos could become a global model for cities seeking to modernise public transportation while preserving the livelihoods of existing operators.

According to her, the reforms should not be interpreted as an attempt by the government to push transport workers aside.

She stressed, “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.”