Lagos signs landmark deal to phase out danfos in favour of franchise bus system

The Lagos State Government has signed a Memorandum of Understanding with the two major transport unions to transition informal danfo operators into a regulated, franchise-based public transport system, in what officials describe as a turning point for the city’s chaotic bus network.

The agreement, announced on Wednesday by the Lagos Metropolitan Area Transport Authority (LAMATA), brings together the state government, the Nigeria Union of Road Transport Workers (NURTW), and the Road Transport Employers Association of Nigeria (RTEAN) under the Bus Industry Transition Programme (BITP).

The BITP is designed to absorb thousands of informal commercial bus operators—including the familiar yellow danfos—into a structured network governed by franchise agreements, digital fare collection, and fixed operating routes.

Under the new framework, transport unions will adopt a cooperative governance structure that allows their members to transition into licensed franchise operators. Fare collection will shift entirely to digital platforms, while LAMATA retains regulatory oversight of bus operations across the state.

The agreement was signed by the Permanent Secretary of the Ministry of Transportation, Mr. Olawale Musa; LAMATA’s Managing Director, Mrs. Abimbola Akinajo; and representatives of the two unions. It follows more than 30 months of engagement with informal operators.

LAMATA described the MoU as a major milestone in the government’s effort to formalise public transport in Africa’s largest city.

“Formalisation should not be construed as strangulation,” Akinajo said. “When we collaborate, the result will be formidable, and capable of being replicated across Nigeria and in cities around the world that are seeking to formalise their public transport operations.”

Musa echoed that sentiment, calling the agreement “a new beginning for public transport in this state.”

The transition will begin on four Quality Bus Corridors currently under construction: Iju Ishaga–Abule Egba, Ketu–Alapere–Akanimodo, Iyana Iba–Igando–Iyana Ipaja, and Ojuelegba–Lawanson–Cele. The programme will then expand to other corridors across the state.

The move is the latest in a series of attempts by Lagos to regulate its notoriously unruly minibus sector. In 2024, the state restricted operations on the Lekki-Epe corridor to buses that met Vehicle Inspection Service standards, and later introduced cashless fare payments via the Cowry Card. By February 2026, the government had banned informal operators entirely from that corridor.

But enforcement has been uneven, and many commuters continue to rely on poorly maintained, unregulated buses. The new MoU takes a different tack—bringing the unions into the reform process rather than imposing rules from the outside.

The BITP is expected to improve service quality, strengthen oversight, and create a more sustainable system over time. But the real test will be whether the unions can deliver on their side of the bargain—and whether commuters see a tangible improvement in safety, reliability, and cost.

For now, the agreement marks the most ambitious attempt yet to phase out the danfo era and replace it with something more orderly, more accountable, and more modern. Lagos has signed the deal; now it has to make it work.