Hardship: Lagos govt spends N14.9bn on transportation subsidy in six years

The Lagos State Government on Tuesday disclosed that Governor Babajide Sanwo-Olu’s administration had spent no less than N14.9 billion to subsidise transportation fares for residents over a period of six years.

The State Commissioner for Transportation, Mr Oluwaseun Osiyemi, made this known during the ministerial press briefing to mark the second anniversary of Governor Sanwo-Olu’s second term in office.

While presenting the ministry’s scorecard at the press conference—also attended by his counterpart from the Ministry of Information and Strategy, Mr Gbenga Omotoso, among others—Osiyemi stated that the Lagos Bus Service Limited (LBSL) was established to provide a modern, safe, secure, convenient, and reliable bus transportation system. The aim, he said, was to integrate with other public transport modes within the state and deliver a socially inclusive service that is both affordable and accessible.

According to the commissioner, LBSL had moved a total of 60,882,000 passengers between May 2019 and February 2025. He added that the agency currently transports over 42,266 passengers daily, operating an average of 1,000 bus trips per day.

Osiyemi further stated that the average fare charged by LBSL since inception had been N261.67 less than the average fares across Lagos, estimating the total value of the fare subsidy at N14.9 billion.

“Currently, LBSL moves over 42,266 passengers daily with an average of 1,000 bus trips per day. Since inception, LBSL average fare has been N261.67 cheaper than the average fares in Lagos, it has subsidized fare for the Lagosians transported to an estimated sum of N14.9 billion,” he said.

Speaking on water transportation, the commissioner revealed that the state government was still investigating the fire incident involving a LAGFERRY boat. He assured the public that the report of the probe would be made available once concluded.

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He also disclosed that CCTV cameras had been fully installed on all LAGFERRY boats to ensure passenger safety through real-time monitoring.

The commissioner affirmed the Sanwo-Olu administration’s commitment to transforming the transportation landscape of Lagos, noting that the governor’s vision extended beyond road, rail, and water options to enhancing the overall quality of life for Lagosians.

While reiterating Governor Sanwo-Olu’s resolve on transportation reform, Osiyemi stressed that the administration’s vision for Lagos transportation is centred on the integration of all transport modes, affordability, efficiency, sustainability, and innovation.

“His vision for Lagos transportation is a journey towards integration of all modes, affordability, efficiency, sustainability, and innovation.

“The strides made in the past years, coupled with ongoing projects, depict a commitment to creating a city where commuting is seamless, and the environment thrives,” Osiyemi said.

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