The Lagos Metropolitan Area Transport Authority (LAMATA) has warned that commuters who continue to pay cash for fares on regulated public transport services will face penalties from Friday, August 1, 2026, as the agency steps up enforcement of its cashless fare payment policy across Lagos State.

The announcement was made during an X Space discussion with transport stakeholders titled “Lagos Cashless Transit: What Aug. 1 Enforcement Means to You”, where LAMATA officials and industry operators outlined the legal basis and operational plans for the policy.

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LAMATA Head of Legal, Idris Akinola, said the enforcement is aimed at improving transparency, accountability and revenue protection within the state’s regulated transport network. Idris Akinola explained that existing laws governing the authority require passengers to pay fares using the approved Cowry Card on regulated transport services.

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

Idris Akinola added that Lagos State laws treat the giving and receiving of unauthorised payments in this context as offences. According to the legal framework cited by the authority, offenders who are convicted could face penalties, including prison terms of up to seven years.

The authority urged commuters to report any driver or conductor requesting cash through LAMATA’s official customer service channels, stressing that enforcement will target both passengers and transport workers who violate the policy.

Managing Director of Teejay Motors, Adekunle Tajudeen, said the company has intensified training for drivers and boarding officers ahead of the August 1 enforcement date.

“We have instructed our staff not to accept cash under any circumstances and have emphasised that passengers must use a Cowry Card,” Adekunle Tajudeen said.

Adekunle Tajudeen revealed that some drivers employed by the operator had previously been arrested and jailed for collecting cash fares.

Adekunle Tajudeen argued that some passengers continued to encourage the practice by offering cash, making it necessary for enforcement efforts to cover both sides of the transaction.

The operator also said additional drivers had been recruited and the fleet expanded to minimise disruptions if non-compliant staff were removed from service.

Public transport and urban mobility expert Adepoju Fawokon supported the policy, saying previous enforcement efforts directed solely at drivers had not fully addressed the problem.

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

Addressing concerns over Cowry Card top-ups, Touch and Pay Technologies Managing Director Olamide Afolabi acknowledged complaints from commuters about incorrect recharge amounts processed by agents.

Olamide Afolabi said the company has introduced new digital tools, including the Carry Hub platform and a mobile application that allows passengers to verify recent top-ups and card balances.

Self-service kiosks at bus and rail terminals have also been deployed to enable commuters to recharge their cards without using third-party agents.

According to Olamide Afolabi, the company is also preparing to introduce a postpaid single-card system before the end of the year.

The planned upgrade will allow online top-ups to become available for immediate use without requiring commuters to transfer funds to their physical Cowry Cards.

The cashless transport initiative forms part of Lagos State’s broader efforts to modernise public transport, reduce fare leakages and improve financial accountability across regulated bus and rail operations.

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Since the Cowry Card system was introduced, LAMATA has progressively expanded its use across Bus Rapid Transit services and other regulated transport corridors, with the August 1 enforcement marking its most significant compliance drive to date.