Lagos: Residents saved N1.9bn over fare cut on public transport services | We’ll reimburse operators

The Lagos Metropolitan Area Transport Authority (LAMATA) says commuters on regulated public transport saved about N1.9 billion over a period of eight weeks.

Abimbola Akinajo, managing-director, LAMATA, disclosed this on Thursday, in a statement by Kolawole Ojelabi, the agency’s corporate communication consultant.

In July, Babajide Sanwo-Olu, governor of Lagos, announced a 50 percent reduction in the fares charged by all state-owned transport services to cushion the effect of the petrol subsidy removal that took effect on May 29, 2023.

Providing an update on the rebate policy, LAMATA said the regulated public transport services, including the bus rapid transport (BRT), standard routes, first and last Mile (FLM), rail and ferry have jointly moved about 7.5 million passengers over the eight-week period. 

“According to data gathered through the state’s electronic payment platform, cowry card, the bus system moved 7,395,977 passengers while the state ferry operator, Lagferry moved 17,543 commuters,” the statement reads.

“The Lagos Rail Mass Transit (LRMT) Blue Line, which commenced limited passenger operation on 4th September 2023 moved 48,893 passengers over 21 days. 

“According to data, transaction value of the services shows that at 50 percent rebate, N1,848,167,460.00 was collected as fares on bus services, while rail and ferry resulted in collectible revenue of N17,842,975 and N13,371,750.00 respectively. 

“At 100 percent fare rates, regulated public transport operators would have grossed N3,758,764,370.00 but with the 50 percent rebate, the Lagos government is expected to reimburse transport operators across all modes of regulated transport systems to the tune of N1,879,382,185.00.”

Speaking more on the rebate, Akinajo also said the figures are proof of how a government can be transparent in the delivery of relief services to the people. 

“One thing is clear: our electronic payment platform is assisting us to gather useful data which will allow us to plan transport services to the teeming people of Lagos State,” she added.

“We are happy to continue, along with our operators, to continue to assist the government to deliver relief and value to the people.”

Akinajo also advised commuters to procure their cowry card, use a regulated transport system to assist in data gathering to improve their travel experience.