Lagos State has granted the approval of a proposal for a bailout for the bus operating companies within the state.
The state also granted the approval for N100 increase in fares of Bus Rapid Transit (BRT) buses for all routes, which will take effect from July 13, 2022.
Governor Babajide Sanwo-Olu disclosed this through Kolawole Ojelabi, assistant director, corporate communication of Lagos Metropolitan Area Transport Authority (LAMATA).
Ojelabi said the fare increase was introduced due to the rising cost of diesel and the high number of buses out of operation due to the lack of spare parts.
“To sustain the operations of regulated bus services in Lagos State, the State Governor, Babajide Sanwo-Olu, has approved a flat rate increase by N100 in bus fares for all Bus Rapid Transit (BRT) and standard routes.
“The increase, which will come into effect on Wednesday, 13 July 2022, is aimed at ensuring the sustainability of the BRT and standard route schemes.
“Operations of the transport scheme, of late, had been hampered due to rising cost of inputs required for sustainable service offering and the attendant high number of buses out of operation as a result of lack of spare parts.
“For instance, the exponential increase in the pump price of diesel from N187 to N830/litre between August 2020 and June 2022, has greatly affected the optimal performance of the bus operating companies leading to the withdrawal of buses from operation and longer waiting time at bus stations.
“The governor in consenting to the fare increase also approved a proposal for a bailout for the bus operating companies in other to cushion the effect of the harsh operating environment and safeguard private partnership investment and forestall the demise of formalized bus operations in the state.
“With the increase, a bus ride from Ikorodu – TBS will now cost N600 from N500 while Berger to Ajah is now N700, up from N600. Oshodi to Abule Egba will cost N450 from N350 and Abule-Egba-CMS-Obalende will attract a fare of N600.”
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