Commuters who pay cash on Lagos Metropolitan Area Transport Authority-regulated buses will face arrest and prosecution from August 1, 2026, as the agency steps up enforcement of its cashless fare policy.
LAMATA said the new enforcement will extend beyond drivers and ground staff who collect cash from passengers to passengers who knowingly offer cash for their trips.
The announcement was contained in a statement issued on Monday by LAMATA’s Head of Corporate Communication, Kolawole Ojelabi.
According to the agency, cash payments weaken the electronic fare collection system, reduce operators’ revenue and threaten the sustainability of regulated public transport services.
Why LAMATA Is Targeting Passengers
LAMATA described cash fare collection within the regulated bus system as an economic offence against the state.
The agency said drivers and ground staff caught collecting cash have previously faced arrest, prosecution and, in some cases, jail terms.
From August 1, commuters who offer cash as payment will also come under the enforcement regime.
LAMATA urged passengers to use only approved electronic payment channels, particularly the Cowry Card.
The cards are available at designated bus stops as well as Blue Line and Red Line train stations.
The agency also encouraged commuters to report drivers or staff who demand cash payments.
Cash Payments Are Creating Revenue Leakages
LAMATA said regulated bus operators have repeatedly complained that cash fare collection is hurting their finances.
According to the agency, revenue lost through unofficial cash payments makes it harder for operators to maintain buses, buy spare parts, restore faulty vehicles and meet salary obligations.
The authority argued that protecting fare revenue would give operators more capacity to keep buses on the road and improve safety and reliability.
It said the success of Lagos’ regulated transport system depends on both passengers and operators complying with the approved payment structure.
Cash Fares Still Exist on Some BRT Routes
Despite the longstanding cashless policy, cash payments remain common on some regulated routes.
Nairametrics reported that passengers and some bus personnel still conduct cash transactions outside the official Cowry Card system.
On the Ikeja Bus Terminal to Ikorodu route, some buses reportedly pick up additional passengers after leaving the terminal.
Those passengers may pay about ₦500 in cash instead of the official ₦680 Cowry Card fare.
Some are also allowed to stand, contributing to overcrowding during busy periods.
Similar cash transactions have reportedly occurred on buses travelling from Ikorodu Garage towards Maya, where some passengers pay around ₦400 rather than the higher fares charged by conventional commercial buses.
These transactions take place outside the approved electronic fare system, which is the type of revenue leakage LAMATA says it wants to stop.
Enforcement Follows Recent Fare Increase
The tougher enforcement comes months after Lagos approved a 13 percent fare increase for Bus Rapid Transit and Bus Reform Initiative services.
The increase took effect on March 2, 2026.
LAMATA said at the time that operators were struggling with higher vehicle maintenance costs, spare parts, staff salaries and investments in cleaner buses.
The state had also increased fares by 18 percent in February 2025.
Before that, Lagos introduced temporary fare discounts after the removal of fuel subsidies, including a 50 percent reduction between August and November 2023 and a later 25 percent discount that remained in place, with a brief interruption, until June 3, 2024.
What Commuters Need to Know
From August 1, paying cash on LAMATA-regulated buses could expose commuters to arrest and prosecution.
Passengers will be expected to use approved electronic payment channels, particularly the Cowry Card.
LAMATA says the move is necessary to reduce revenue leakages, strengthen the cashless transport system and ensure operators receive the money needed to maintain buses and improve service delivery.
The enforcement also sends a broader message.
Lagos is no longer treating cash payment on regulated buses as a minor breach of transport rules.
It is treating it as a revenue and compliance issue.