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Lagos Spends N14.9bn On Transport Subsidy, Registers 78,928 New Cars In One Year

LAGOS, Nigeria – Lagos State Government on Tuesday revealed that the administration of Governor Babajide Sanwo-Olu spent nothing less than N14.9 billion to subsidise transportation fares for Lagosians in six years.

This was revealed, among others, by the state’s Commissioner for Transportation, Mr. Oluwaseun Osiyemi, during the opening day of the ministerial press briefing, which held in Bagauda Kaltho Press Centre, in Alausa, Ikeja, to commemorate the second year – second term in office of Governor Sanwo-Olu.

Reeling out the ministry’s scorecard, he said Lagos Bus Service Limited (LBSL), was established to provide a modern, safe, secure, convenient and reliable bus transportation system that integrate with other modes of public transport within the state to deliver a socially inclusive service that is affordable and accessible to all.

He disclosed that between May 2019 till February 2025, LBSL had conveyed a total of 60, 882, 000 passengers.

“Currently, LBSL moves over 42, 266 passengers daily with an  average of 1000 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,” the commissioner said.

Speaking on water transportation, Osiyemi disclosed that the state government was yet to know the cause of the fire incident that involved a LAGFERRY boat recently, but soon the report of probe on the incident would be made public, he assured.

He revealed that installation of CCTV cameras on all LAGFERRY boats had been completed, and noted that the initiative would ensure safety of all passengers through real time monitoring.

The commissioner said Governor Sanwo-Olu’s administration is resolute on transforming Lagos transportation landscape. 

He added that the commitment extends beyond the options of roads, rails, and water transport; extending to the overall quality of life for Lagosians.

Reiterating Governor Sanwo-Olu’s commitment on transportation, the commissioner said: “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.”

He stressed that Lagos has witnessed an impressive surge in vehicle purchases, with a total of 78,928 new vehicles registered within the past year. He highlighted that the Motor Vehicle Administration Agency (MVAA), registered 65,531 new private vehicles and 13,397 commercial vehicles between May 2024 and March 2025.

“This spike in vehicle registration, despite the prevailing economic climate, underscores the resilience and growing vehicle demand in Nigeria’s commercial capital. The MVAA plays a crucial role in ensuring road safety and the efficient management of vehicle registration, with its database maintaining over 140 outstations to facilitate easy access to its services.”

Osiyemi also pointed out that during the period under review, the agency produced 89,062 fresh driver’s licenses and 180,868 renewals.

In addition to its role in vehicle registration, he said the MVAA is also tasked with overseeing the activities of auto spare parts dealers across Lagos, with 75 certificates issued to spare parts dealers during the period under review.

According to him, this level of oversight ensures that dealers adhered to regulations, which is essential to the safety and longevity of vehicles on the road.

To further improve road safety, Osiyemi stated that the Vehicle Inspection Services (VIS), had continued to enforce stringent measures, including the “No Vehicle Inspection, No Roadworthiness Certificate” policy.

He disclosed that this initiative has led to the issuance of 1,014,251 Roadworthiness Certificates from May 2024 to March 2025.

Osiyemi added that VIS also captured 470,523 violations using the Automatic Number Plate Recognition (ANPR) technology, ensuring compliance with the Transport Sector Reform Law of 2018.

“With these measures, we are ensuring that only roadworthy vehicles ply Lagos roads, improving safety for all road users,” said Osiyemi.

He added that the government had also ramped up efforts to monitor illegal and unregistered vehicles, with handheld Traffic Management Solution (TMS) devices, capturing over 46,000 violations in the past year.

The commissioner further said the Lagos transport landscape had also seen significant developments in public transport, with the Lagos Metropolitan Area Transport Authority (LAMATA), making notable strides in its Blue Line electric light rail project.

“The first phase of the Blue Line, stretching from Marina to Mile 2, has already commenced full commercial operation, transporting over 2 million passengers. Construction of the second phase, which will extend the line to Okokomaiko, is underway and expected to carry 500,000 passengers daily.

“Public bus transport services have not been left behind, with Lagos Bus Services Limited (LBSL) moving a staggering 60.88 million passengers since its inception. In addition, LBSL has maintained an average fare of N542.66 in February 2025, significantly cheaper than the informal sector’s average fare of N1,097.73, saving Lagosians an estimated N14.9 billion,” Osiyemi said.

On the waterways, he stated that Lagos Ferry Services (LAGFERRY), had also experienced growth, ferrying 280,282 passengers from May 2024 to April 2025, with ridership increasing from an average of 1,200 daily passengers in 2024 to 1,500 at present.

“The agency has further supported the state’s economy by providing logistics solutions to industries like Dangote and BUA through the transportation of goods on the inland waterways.

“From road safety to expanding public transport options and waterway transportation, Lagos is making significant strides in transforming its transportation infrastructure to meet the growing demands of its population,” Osiyemi concluded.

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