Commuters who pay cash fares on LAMATA-regulated bus services in Lagos will face arrest and prosecution from August 1, 2026, as the Lagos Metropolitan Area Transport Authority (LAMATA) expands enforcement of its cashless fare policy.

The announcement was made in a statement issued on Monday by LAMATA’s Head of Corporate Communication, Kolawole Ojelabi.

The authority said the enforcement, which previously targeted bus drivers and ground staff collecting cash fares, will now also apply to commuters who knowingly offer cash for their journeys.

What they are saying

According to LAMATA, cash fare collection within the regulated bus system constitutes an economic crime against the state because it undermines the integrity of the fare collection system, deprives operators of legitimate revenue, and weakens the sustainability of public transport services. The authority noted that drivers and ground staff caught collecting cash have previously been arrested, prosecuted, and, in some cases, jailed.

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  • “The Lagos Metropolitan Area Transport Authority (LAMATA) has announced that, effective August 1, 2026, enforcement against cash fare collection on regulated bus services will be extended to commuters who offer cash as payment for their journeys.”

LAMATA urged commuters to comply with the cashless fare policy by using only approved electronic payment channels.

It said Cowry Cards, the approved payment method for regulated bus services, can be purchased at designated bus stops as well as Blue Line and Red Line train stations.

The authority also encouraged passengers to report drivers or staff demanding cash payments through its designated email and telephone channels.

LAMATA said the measure is aimed at strengthening compliance with the state’s cashless transport system and protecting public transport revenues.

More insights

According to LAMATA, regulated bus operators have consistently raised concerns over the impact of cash fare collection on their operations. The authority said revenue leakages from cash payments have made it increasingly difficult for operators to maintain buses and meet critical financial obligations.

  • Revenue losses have affected operators’ ability to procure spare parts and return faulty buses to service.
  • The authority said fare leakages also make it harder for operators to meet staff salary obligations.
  • LAMATA noted that protecting fare revenues would enable operators to improve service delivery by restoring more buses to operation and providing safer, more reliable transport.

The authority reiterated that the success of Lagos’ regulated transport system depends on the cooperation of both operators and commuters in safeguarding public resources.

Get up to speed

The enforcement comes months after the Lagos State Government approved a 13% fare increase for Bus Rapid Transit (BRT) and Bus Reform Initiative (BRI) services, which took effect on March 2, 2026.

At the time, LAMATA said the adjustment followed appeals from regulated bus operators facing rising costs, including vehicle maintenance, spare parts, staff salaries, and investments in cleaner buses.

The state has periodically reviewed fares in recent years, including an 18% increase in February 2025. It also introduced temporary fare relief measures after the removal of fuel subsidies, offering a 50% discount from August to November 2023, followed by a 25% discount that remained in place, with a brief interruption, until June 3, 2024.

What you should know

Nairametrics can confirm that cash fare transactions remain common on some regulated bus services despite LAMATA’s longstanding cashless payment policy. Based on repeated observations on Bus Rapid Transit (BRT) routes, both passengers and some bus personnel continue to exchange cash for journeys outside the official Cowry Card system.

  • On the Ikeja Bus Terminal–Ikorodu route, some buses stop after leaving the terminal to pick up additional passengers who pay cash fares of about N500 instead of the official N680 Cowry Card fare.
  • These passengers are often allowed to stand, resulting in overcrowding during peak travel periods.
  • Nairametrics has also observed some BRT buses returning to their parks picking up passengers for cash fares, including buses travelling from Ikorodu Garage towards Maya, where commuters have paid around N400 instead of the roughly N800 charged by conventional commercial buses.

These observations mirror LAMATA’s concerns that cash fare collection continues within parts of the regulated transport network, resulting in revenue leakages outside the state’s approved electronic fare collection system.