Cash fare payments to attract sanctions as Lagos govt begins enforcement
Lagos to Enforce Cashless Payments for Public Transport Starting August 1
The Lagos Metropolitan Area Transport Authority (LAMATA) has announced that penalties will be imposed on commuters using cash for rides on regulated public transport services beginning August 1. This measure is part of the state’s initiative to enforce a cashless fare payment policy.
The enforcement aims to enhance accountability, promote transparency, and ensure adherence to electronic payment systems within regulated transport operations. LAMATA shared these details during a discussion with transport stakeholders and industry leaders titled “Lagos Cashless Transit: What Aug. 1 Enforcement Means to You,” held on Tuesday.
Passengers are encouraged to report any taxi or bus driver requesting cash payments via LAMATA’s official email channels or customer service lines.
Idris Akinola, LAMATA’s Head of Legal, highlighted that current regulations mandate fare payments on authorized public transport services to be made exclusively through the Cowry Card, the designated electronic platform. He emphasized that both offering and accepting unauthorized payments constitutes an offense under Lagos State laws, potentially leading to allegations of bribery.
“This means that both the individual offering cash and the recipient could face legal consequences,” Akinola stated.
Akinola advised transport operators to employ reliable drivers and conductors and to carry out regular internal checks to ensure compliance with the cashless policy and cooperate with LAMATA’s enforcement inspections. He warned that violators could face severe penalties, including imprisonment for up to seven years if convicted under relevant laws.
Adekunle Tajudeen, Managing Director of Teejay Motors, reported that the company has conducted meetings and training sessions for its drivers, termed “captains,” and boarding officers to prepare for the policy’s implementation. He noted that drivers have been instructed not to accept cash under any circumstances, with reminders to passengers that fares must be paid using the Cowry Card.
Tajudeen acknowledged that several of Teejay Motors’ drivers had previously faced arrests for accepting cash fares while highlighting that passengers also contribute to the issue by offering cash.
To prevent service interruptions, Tajudeen mentioned that the company has hired additional drivers and expanded its fleet, ensuring that commuters remain accommodated if non-compliant staff are dismissed from their positions.
Urban mobility expert Adepoju Fawokon remarked that enforcement efforts targeting only drivers have not produced the desired outcomes. “Since every cash transaction involves both the individual offering cash and the individual accepting it, LAMATA believes accountability should rest with both parties,” he said. Fawokon further noted that the objective is to curb revenue loss and sustain the regulated bus system, rather than simply penalize commuters.
Addressing concerns raised over incorrect card top-ups, Olamide Afolabi, Managing Director of Touch and Pay Technologies, confirmed that some passengers had reported issues with agents loading inaccurate amounts onto Cowry Cards. He explained that new technologies, including the Carry Hub and a mobile application, had been introduced to help users track their balances and review recent transactions.
Afolabi mentioned that self-service top-up kiosks had been established at bus and rail terminals, enabling commuters to add funds to their cards independently. The mobile application allows users to top up their cards and manage their accounts directly from their phones.
He added that the rollout of a postpaid and single-card payment system is anticipated before the end of the year, which will facilitate instant online top-ups without the necessity of transferring funds onto a physical card first.
