In a press briefing at Bagauda Kaltho Press Centre, Alausa, LAMATA Managing Director and Chief Executive Officer, CEO, Engr. Abiodun Dabiri disclosed that with the new development a ride on BRT from Ikorodu to CMS which used to cost N195 is now N300, while a trip from Ikorodu to Mile 12, which used to cost N75, has moved to N100, among others.
He said with the economic downturn, public transport had been severely impacted as all related costs had escalated beyond any financial forecast or projection, and that the current government was focused on a strategic reform of the public transport operations in order to create world class public transport infrastructure and support for operations that is modern, cost effective, safe and sustainable on the long run.
He said the licensing of private sector operators to provide affordable and safe operations was part of this ongoing process.
According to him, “the current financial crunch, however, has seen average cost of operations increase to up to about 110 percent. With cost of fueling going up by 71 percent, oil prices up by 64 percent, tyre costs up to 90 percent, continued operations is thereby threatened.
“In view of this, and with government responsibility to avert a collapse of the franchise scheme which currently serves over 500,000 commuters daily, the Lagos State Government had to consider the request of the operators for an upward review of bus fares. It is important to note that current prices on some of these schemes have stayed constant for more than six years for some operators.”
He explained that in approving the fare increase, government weighed the justification of the operators for the increase vi-a-vis the effect on the commuters, stressing that government recognized the current financial difficulties currently endured by Lagosians and assured public transportation users on the commitment of government that they would always be protected from arbitrary increases.