The Lagos State Government has approved a 13 percent increase in fares across all services under the Bus Reform Initiative, including the Bus Rapid Transit system and standard bus routes throughout the state.
Governor Babajide Sanwo-Olu granted the approval following appeals from regulated public transport operators, who cited mounting economic pressures threatening the sustainability of their operations.
Kolawole Ojelabi, Head of Corporate Communication at the Lagos Metropolitan Area Transport Authority, LAMATA, announced the new fare structure in a statement on Monday, February 23, saying it would take effect from Monday, March 2, 2026.
The government justified the increase by pointing to the country’s high inflation rate, which it said had placed enormous strain on the cost of running public transport services.
“The adjustment is designed to help offset the severe impact of ongoing economic pressures on public transport providers.
“It also aligns with the state’s previously established annual fare review mechanism. The urgency of the measure is driven by persistent inflationary trends,” the statement said.
“Data from the National Bureau of Statistics shows Nigeria’s headline inflation rate stood at 15.15 percent in December 2025, with only slight moderation to around 15.1 percent in January 2026, levels that continue to exert heavy strain on operating costs,” it added.
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According to the government, bus operators have been battling rising expenses on multiple fronts, from vehicle maintenance and imported spare parts to staff salaries, which climbed further after the rollout of the new national minimum wage.
The statement added that operators were also investing heavily in newer and more fuel-efficient buses to improve passenger comfort and meet environmental sustainability targets.
“In addition, operators are committing significant resources to fleet renewal, procuring newer, cleaner, and more fuel-efficient buses to boost passenger comfort, maintain high service standards, and advance environmental sustainability goals in Lagos,” it said.
The government assured commuters that the decision was not taken lightly, describing it as a balanced approach to keeping services running without placing an unbearable burden on passengers.
The fare adjustment will affect millions of daily commuters who depend on the BRT and regulated bus network to navigate Africa’s most congested city.
It adds to the growing list of cost-of-living pressures facing Lagos residents amid ongoing economic reforms that have driven up the prices of fuel, food, and essential services.