Lagos Restores 25% Discount on Public Transport After Public Outcry

(iexclusivenews) – The Lagos State Government has announced that it will continue to subsidize the bus and train fares for the commuters in the state.

The subsidy, which was initially reduced from 50% to 0%, has been restored to 25% following the appeals from the public.

The Lagos Metropolitan Area Transport Unit (LAMATA) disclosed this in a tweet on Monday, November 6, 2023.

LAMATA is the agency responsible for the regulation and management of the public transport system in Lagos.

According to the statement by the Head of Corporate Communication of LAMATA, Kolawole Ojelabi, the subsidy will take effect from Tuesday, November 7, 2023, until further notice.

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Why the Subsidy Was Reduced and Restored

The subsidy on the public transport fares was introduced by the Lagos State Governor, Babajide Sanwo-Olu, on July 31, 2023.

As part of the measures to cushion the economic impact of the oil subsidy removal on the residents of the state.

The subsidy, which offered a 50% discount on the regulated bus and rail transport services, was meant to last for three months.

However, on Saturday, November 4, 2023, the state government announced that the subsidy had been withdrawn due to the rising cost of diesel, which is the main fuel used by the buses.

The withdrawal of the subsidy led to an outcry from the commuters, who complained that the transport fares were too high and unaffordable for many of them.

Some of them also accused the state government of being insensitive and uncaring to the plight of the masses.

In response to the public outcry, Governor Sanwo-Olu directed LAMATA to reinstate the subsidy, albeit at a lower rate of 25%.

He said that the decision was taken after considering the appeals from the public and the need to balance the welfare of the commuters and the sustainability of the transport operators.

How the Subsidy Will Affect the Commuters and the Operators

The subsidy will benefit the commuters who use the regulated bus and rail transport services in Lagos.

Which include the Bus Rapid Transit (BRT), the Lagos Bus Service Limited (LBSL), and the Lagos Urban Rail Network (LURN).

The subsidy will reduce the transport fares by 25% across the board.

For example, the fare for a trip from Ikorodu to Tafawa Balewa Square (TBS) on the BRT, which was N600 before the subsidy, will now be N450.

Similarly, the fare for a trip from Oshodi to Abule Egba on the LBSL, which was N450 before the subsidy, will now be N325.

The subsidy will also help the transport operators to cope with the rising cost of diesel, which has increased by about 50% in the last three months.

According to LAMATA, the pump price of diesel jumped from N867 in August to N1,300 in November 2023.

The subsidy will also enable the transport operators to maintain the quality and safety of their services.

The subsidy will remain in place until the state government announces another review, which will depend on the prevailing economic and social conditions in the state.