Lagos transport agency set to introduce contactless payment on buses starting August 1

The Lagos Metropolitan Area Transport Authority has set August 1 as the date for full enforcement of its cashless fare payment policy, cautioning commuters who pay with cash that they may face penalties when using regulated public transport services.

n

This enforcement aims to bolster accountability, enhance transparency, and ensure compliance with electronic payment systems throughout Lagos' regulated transport network, according to the authority.

n

During an X Space discussion titled "Lagos Cashless Transit: What Aug. 1 Enforcement Means to You," LAMATA disclosed its plans, as reported by Daily Post on Wednesday, to transport stakeholders and industry leaders.

n

LAMATA's Head of Legal, Idris Akinola, emphasized that existing Lagos State regulations mandate passengers to use the approved electronic payment platform, the Cowry Card, for fare payments on regulated public transport services.

n

Akinola clarified that both commuters who offer cash payments and operators who accept them can be held liable under the law, and unauthorized cash transactions may be treated as offenses.

n

He urged transport operators to ensure their drivers and conductors comply with the policy, conduct internal checks, and cooperate with LAMATA officials during enforcement exercises.

n

Akinola warned that offenders convicted under the relevant laws may face severe penalties, including imprisonment of up to seven years.

n

Teejay Motors' Managing Director, Adekunle Tajudeen, stated that the company has trained its drivers and boarding officers to refuse cash payments from passengers ahead of the enforcement.

n

Tajudeen noted that some drivers had previously been arrested and jailed for collecting cash fares, and that passengers also contribute to the problem by offering cash instead of using the approved payment system.

n

The company has increased its fleet and recruited additional drivers to prevent disruptions if non-compliant workers are removed from operations, according to Tajudeen.

n

Transport and urban mobility expert Adepoju Fawokon emphasized that previous enforcement efforts focused mainly on drivers had not achieved the desired results, stressing that both parties involved in cash transactions must be held accountable.

n

Fawokon said the policy aims to reduce revenue leakage and protect the sustainability of Lagos' regulated public transport system.

n

Meanwhile, Touch and Pay Technologies' Managing Director, Olamide Afolabi, announced that measures have been introduced to address complaints about incorrect Cowry Card top-ups.

n

Afolabi said new tools, including the Carry Hub platform, a mobile application, and self-service top-up kiosks at bus and rail terminals, will help commuters monitor balances, review transactions, and fund their cards more easily.

n

Afolabi added that a postpaid and single-card payment system is expected to be expanded before the end of the year, allowing users to make online top-ups that can be accessed instantly without first transferring funds to a physical card.