Governor Akinwunmi Ambode of Lagos State has approved 20 to 50 per cent fare increase for BRT, LAGBUS and other franchise buses. This takes effect from March 1, 2017.
The fare increase differs in various routes. Ikotun to Iyana-Ipaja will cost N100 from the current N50; Ikorodu to CMS will become N300 from N195; Dopemu to Maryland will cost N200 from N150; and Ikorodu to Mile 12, presently costs N75 will become N100.
At a news conference on Monday at the Bagauda Kaltho Press Centre, Alausa, Ikeja, the Managing Director and Chief Executive Officer, Lagos Metropolitan Area Transport Authority, Abiodun Dabiri, said the increase necessary in order to avert a complete collapse of the scheme.
Citing increase in all related costs due to the adverse economic situation, Dabiri said “As a result of the economic downturn, public transport has been severely impacted as all related costs have escalated beyond any financial projection.
“Although the government is focused on a strategic reform of the public transport operations to create a world-class public transport that is modern, cost-effective and safe, the government has to consider the request of the operators for an upward review of bus fares due to the current prices for some of these schemes, which have stayed constant for more than six years.
“The current financial crunch has seen average cost of operations increase to about 110 per cent. With the cost of fuelling going up by 71 per cent, oil prices up by 64 per cent, tyre by 90 per cent, continued operations are threatened.
“In order to avert a collapse of the scheme, which currently serves over 500,000 commuters daily, the Lagos State Government has to consider the request of the operators for an upward review of bus fares. Consequently, Governor Akinwunmi Ambode has approved a fare increase for the operators effective from Wednesday, March 1, 2017. The average increase approved ranges from 20 per cent to 50 per cent on different routes.”