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LAMATA Begins Full Enforcement of Cashless Transport Policy
The Lagos State Government has commenced full enforcement of its cashless fare policy across the state’s regulated public transportation system, warning that commuters and transport operators who engage in cash transactions risk arrest, prosecution and severe legal penalties.
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The enforcement, which takes effect from August 1, 2026, is being implemented by the Lagos Metropolitan Area Transport Authority (LAMATA) as part of ongoing efforts to modernize public transportation, eliminate revenue leakages and strengthen transparency across Lagos’ rapidly expanding mass transit network.
Under the directive, the Cowry Card remains the only approved payment platform for passengers using LAMATA-regulated buses and rail services.
Cash Payments Now an Offence Under Lagos Transport Regulations
Speaking on the enforcement exercise, LAMATA’s Head of Legal, Idris Akinola, said existing Lagos State transport regulations make electronic payment mandatory for all passengers using regulated public transport services.
According to him, both passengers who offer cash and transport personnel who receive cash fares are liable under the law.
He warned that unauthorized cash transactions could constitute criminal offences, stressing that offenders convicted under the applicable laws could face severe sanctions, including prison terms of up to seven years.
Akinola urged transport operators to ensure that drivers, conductors and boarding officers fully comply with the directive by refusing cash payments, conducting internal compliance checks and cooperating with enforcement officials.
Policy Targets Revenue Leakages and Greater Transparency
LAMATA explained that the cashless payment policy is designed to improve financial accountability while protecting revenues needed to sustain Lagos’ public transportation infrastructure.
By eliminating cash collections, the authority expects to significantly reduce revenue leakages that have historically affected fleet maintenance, operational efficiency and service expansion.
The initiative also strengthens transparency by ensuring every transaction is digitally recorded, making revenue monitoring and auditing easier while minimizing opportunities for fraud.
Transport Operators Prepare for Strict Compliance
Transport operators have begun implementing internal compliance measures ahead of the enforcement.
Managing Director of Teejay Motors, Adekunle Tajudeen, disclosed that the company has trained its drivers and boarding officers extensively, emphasizing that no employee should accept cash from passengers.
According to him, previous enforcement exercises resulted in the arrest and imprisonment of some drivers who violated the policy.
He noted that passengers also contribute to non-compliance by insisting on paying cash despite the availability of electronic payment options.
To minimize disruptions, Tajudeen said the company has expanded its fleet and recruited additional drivers to replace any personnel removed for violating the regulations.
Experts Back Stronger Enforcement
Urban mobility expert Adepoju Fawokon welcomed the broader enforcement strategy, noting that previous efforts largely focused on transport operators while overlooking passengers who initiated cash transactions.
He argued that holding both commuters and operators accountable would significantly improve compliance and help preserve the financial sustainability of Lagos’ regulated transport system.
According to him, reducing revenue leakages remains critical to improving service quality and expanding public transportation infrastructure across the state.
Cowry Card Remains the Only Approved Payment Method
LAMATA reiterated that passengers must obtain and use the Cowry Card for all journeys on regulated bus and rail services.
The electronic payment card is available at designated Bus Rapid Transit (BRT) terminals, bus stops and Lagos Blue and Red Line rail stations.
To improve user experience, Touch and Pay Technologies, managers of the Cowry Card platform, have introduced several digital tools that simplify account management.
Managing Director Olamide Afolabi said commuters can now use the Carry Hub platform, mobile applications and self-service top-up kiosks located at bus terminals and railway stations to check balances, review transaction histories and conveniently fund their cards.
The enhancements were introduced to address previous complaints regarding delayed or inaccurate electronic top-ups.
LAMATA Urges Public to Report Violations
The transport authority has encouraged members of the public to report any operator or staff member demanding cash payments.
Complaints can be submitted through LAMATA’s official email address or dedicated customer service telephone lines.
The agency emphasized that strict enforcement is intended to create a transparent, accountable and technologically driven transport ecosystem capable of supporting Lagos’ growing population while improving service delivery for millions of daily commuters.
Cashless Transport Supports Lagos’ Smart City Vision
The enforcement represents another significant milestone in Lagos State’s broader smart city agenda, where digital technologies are increasingly being deployed to improve governance, public service delivery and urban mobility.
Industry analysts believe a fully electronic fare collection system will provide better transport planning data, improve operational efficiency, reduce cash-related fraud and generate reliable revenue for future investments in buses, rail systems and transport infrastructure.
As Africa’s largest urban economy continues expanding its integrated transport network, the transition to a fully cashless fare system is expected to strengthen commuter confidence while positioning Lagos among leading digitally enabled public transport systems on the continent.
