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) with the Lagos State Government to participate in the Bus Industry Transition Programme (BITP), marking a major step in the ongoing reform of public transportation in the state.
The agreement is expected to facilitate the integration of informal commercial transport operators, including operators of the iconic yellow danfo buses, into a regulated, structured and modern public transportation system.
The MoU was signed by the Lagos State Chairman of RTEAN, Mr Samson Ajala Adepeju, and its Secretary, Bolaji Kawojue, alongside the NURTW representatives, Alhaji Mustapha Adekunle Sego and its Secretary, Comrade Usman O. Teslimfor.
The Permanent Secretary, Lagos State Ministry of Transportation, Mr Olawale Musa, and the Managing Director of the Lagos Metropolitan Area Transport Authority (LAMATA), Engr. Abimbola Akinajo, signed on behalf of the Lagos State Government.
Speaking at the signing ceremony, Musa described the agreement as “a new beginning for public transport in this state,” saying it demonstrated the commitment of the government and transport stakeholders to building a safer, more efficient and sustainable public transportation system.
The BITP is a Lagos State Government initiative being implemented by LAMATA to reform the bus transport sector by transitioning informal operators into a more organised and regulated operating framework.
The newly signed MoU establishes the guiding principles and expected outcomes for the implementation of the programme.
It also provides a common framework for the transition of bus operations across the state’s eight Quality Bus Corridors (QBCs) and serves as the basis for the granting of bus operating franchises under the new system.
Under the proposed operational model, transport unions will be organised through a cooperative society governance structure to facilitate the transition of their members into franchise operators.
The new system will also introduce fully digital fare collection to improve revenue management and transparency, while LAMATA will maintain regulatory oversight of operations across the designated routes.
Four of the Quality Bus Corridors currently under construction for the integrated system are Iju-Ishaga–Abule Egba; Ketu–Alapere–Akanimodo; Iyana-Iba–Igando–Iyana-Ipaja; and Ojuelegba–Lawanson–Cele.
Speaking on the significance of the agreement, LAMATA Managing Director, Akinajo, said the development was the product of more than 30 months of sustained engagement and collaboration between the government and transport unions.
She said the agreement demonstrated that the formal and informal sectors of the transport industry could work together to develop a modern public transportation system without excluding existing operators.
According to Akinajo, the successful implementation of the programme could provide a model for other cities seeking to modernise their public transportation systems while incorporating existing transport operators.
“This will become a baseline for other cities because it will be a verifiable example of a handshake between government and the unions,” she said.
Akinajo also stressed that the formalisation of the public transport sector should not be interpreted as an attempt to suppress or marginalise transport operators.
“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 formalise their public transport operations,” she added.
The MoU is expected to provide a structured pathway for existing transport operators to transition into the new bus operating framework while improving accountability, service delivery and commuter experience.
The agreement is also expected to strengthen operational efficiency, improve passenger safety and create a more sustainable and investor-friendly bus transport industry in Lagos.
The development forms part of the Lagos State Government’s broader efforts to transform public transportation through regulated operations, improved infrastructure, digital payment systems and stronger institutional oversight.
With the participation of the two major transport unions, the government hopes to achieve a smoother transition from the existing informal system to an integrated public transport network that meets the growing transportation needs of Lagos residents.