Cash fare payments to attract sanctions as Lagos govt begins enforcement

Lagos Metropolitan Area Transport Authority, LAMATA, has warned that commuters who pay cash for rides on regulated public transport services will face penalties beginning August 1 as the state moves to fully enforce its cashless fare payment policy.

According to the authority, the enforcement is aimed at strengthening accountability, promoting transparency and ensuring full compliance with the use of electronic payment systems across regulated transport operations.

LAMATA made this known during an X Space discussion with transport stakeholders and industry leaders on Tuesday, themed “Lagos Cashless Transit: What Aug. 1 Enforcement Means to You.”

The agency also urged passengers to report any driver or conductor demanding cash payments through its official email channels or customer service lines.

Speaking during the session, LAMATA’s Head of Legal, Idris Akinola, said the laws and regulations governing the authority require commuters to pay fares on regulated public transport services through the approved electronic platform, the Cowry Card.

He added that existing Lagos State laws classify both the giving and receiving of unauthorised payments as offences, noting that in this context, offering or accepting cash could amount to bribery.

“This means both the person offering cash and the person accepting it may be held liable under the applicable laws,” Akinola said.

He advised transport operators to engage trustworthy drivers and conductors, while also encouraging them to conduct random internal checks to ensure staff comply with the cashless policy and cooperate with LAMATA’s enforcement inspections.

Akinola warned that offenders could face severe penalties, stating that both parties, if convicted under the relevant laws, could be sentenced to up to seven years imprisonment.

Managing Director of Teejay Motors, Adekunle Tajudeen, said the company had already organised meetings and training programmes for its drivers, referred to as captains, as well as boarding officers to prepare them for the full implementation of the policy.

According to him, staff members had been directed not to accept cash under any circumstance and passengers had been reminded that fares must be paid with the Cowry Card.

Tajudeen disclosed that some Teejay Motors drivers had previously been arrested and jailed for collecting cash fares, arguing that commuters also contributed to the problem by offering cash payments.

He said extending enforcement to passengers was intended to discourage the practice and improve compliance.

To minimise service disruptions, he noted that the company had recruited additional drivers and expanded its fleet to ensure commuters would not be stranded if non-compliant staff were removed from operations.

Also speaking, public transport and urban mobility expert Adepoju Fawokon said focusing enforcement solely on drivers had not yielded the desired results.

“Since every cash transaction involves both the person offering cash and the person accepting it, LAMATA believes both parties should be held accountable.

“The goal is to reduce revenue leakage and protect the sustainability of the regulated bus system rather than simply punish commuters,” Fawokon said.

Responding to complaints about incorrect card top-ups, Managing Director of Touch and Pay Technologies, Olamide Afolabi, acknowledged that some passengers had reported cases of agents loading inaccurate amounts onto Cowry Cards.

He said the company had introduced new technology, including the Carry Hub and a mobile application, to help users monitor their balances and review recent transactions.

Afolabi explained that self-service top-up kiosks had also been installed at bus and rail terminals, allowing commuters to load funds onto their cards without relying on agents.

He added that the mobile application enables users to top up their cards and transfer the balance directly from their phones.

According to Afolabi, a postpaid and single-card payment system is expected to be rolled out more extensively before the end of the year.

He said the new system would allow online top-ups to be used instantly without the need to first transfer funds onto the physical card.