VZCZCXRO9117
RR RUEHMA RUEHPA
DE RUEHOS #0320/01 2101145
ZNR UUUUU ZZH
R 291145Z JUL 09
FM AMCONSUL LAGOS
TO RUEHC/SECSTATE WASHDC 0902
INFO RUEHUJA/AMEMBASSY ABUJA 0490
RUEHZK/ECOWAS COLLECTIVE
RUCPDOC/DEPT OF COMMERCE WASHDC
RHMCSUU/DEPT OF ENERGY WASHINGTON DC
RULSDMK/DEPT OF TRANSPORTATION WASHDC
RUEATRS/DEPT OF TREASURY WASHDC
RUEAIIA/CIA WASHINGTON DC
RHEFDIA/DIA WASHINGTON DC
RHMFISS/HQ USAFRICOM STUTTGART GE
RUZEJAA/JAC MOLESWORTH RAF MOLESWORTH UK

UNCLAS SECTION 01 OF 02 LAGOS 000320 
 
SIPDIS 
 
COMMERCE FOR KBURRESS 
TREASURY FOR DPETERS, RHALL, RABDULRAZAK 
STATE PASS USTR FOR LISER, AGAMA 
STATE PASS OPIC FOR ZHAN, MSTUCKART, JEDWARDS 
STATE PASS TDA FOR EEBONG, DSHUSTER 
STATE PASS EXIM FOR JRICHTER 
STATE PASS USAID FOR NFREEMAN, GBERTOLIN 
USDOC FOR 3130/USFC/OIO/ANESA/DHARRIS 
 
E.O. 12958: N/A 
TAGS: ECON ELTN EINV ETRD PGOV NI
SUBJECT: NIGERIA: LAGOS BUS RAPID TRANSIT TWO YEARS AFTER 
 
REF: 08 LAGOS 270 
 
¶1. (U) Summary: Two years after the introduction of the Bus Rapid 
Transit (BRT) program in Lagos, more Lagos car owners are leaving 
their cars for faster bus rides into Lagos's business districts. 
Lagos Bus Asset Management Company (LAGBUS), one of two companies 
running the service, has covered about 37.5 million kilometers 
conveying 34.5 million passengers on 1.5 million trips, while the 
other company has transported an estimated 62 million passengers in 
its first year of operation.  The BRT would be an even more popular 
option for Lagos commuters if the city can expand the route network 
and integrate bus system with other forms of transportation.  End 
Summary. 
 
¶2. (U) Dayo Mobereola, CEO Lagos Area Metropolitan Transport 
Authority (LAMATA) said told U.S. Department of Transportation's 
Rita Daguillard and National Transit Institute Director Paul 
Larousse June 30, that his agency, a semiautonomous transport agency 
inaugurated in December 2003, had rehabilitated over 50 kilometers 
of road, launched the Lagos Bus Asset Management Company (LAGBUS) in 
2007 and the Bus Rapid Transit Company (BRTC) in March 2008 to run 
bus services on dedicated lanes in the metropolis.  These are the 
first steps in creating an efficient, effective and affordable 
multi-modal public transport system in Lagos, that will integrate 
rail and water transport with the currently over taxed road 
transportation system. (Note: LAMATA was established with the World 
Bank's technical and financial assistance of a $100 million credit. 
The Lagos state government provided a $35 million counterpart fund. 
End note.) (Ref A). 
 
LAGBUS and BRTC Success 
----------------------- 
 
¶3. (U) When it introduced LAGBUS in 2007, LAMATA had the uphill task 
of moving over seven million passengers daily in Lagos on three 
routes with 123 Brazilian-made "Marcopolo" public buses.   Mobereola 
claims the system has been a great success and it has expanded 
operations to 29 routes with over 500 buses.  Tunde Disu, CEO of 
LAGBUS said the company, which runs Marcopolo buses that can carry 
46 passengers at a fare of naira 120 ($0.81) per passenger and 
air-conditioned Daewoo buses that can seat 43 persons at fare of 
naira 150 ($1) for the extra comfort, has covered about 37.5 million 
kilometers conveying 34.5 million passengers on 1.5 million trips. 
According to Mobereola, BRTC moves an average of 200,000 passengers 
daily and an estimated 62 million passengers were transported in the 
program's first year.  Recently both operators have extended their 
routes, with BRTC serving Ikorodu and LAGBUS serving Victoria 
Island.  LAGBUS now runs two park and ride terminals which is 
encouraging more car owners to drop their cars and ride the buses 
into the business districts.  With a round trip bus commute costing 
naira 300 ($2) plus a naira 200 ($1.35) parking charge, more and 
more car owners are realizing they can save money and time using 
this service.  A trip by car from the Lagos-end of the Lagos-Ibadan 
expressway can take two and a half hours if there is no rain.  Using 
dedicated bus-only lanes, a BRT bus can make the same trip in one 
hour. 
 
¶4. (U) LAGBUS directly employs about 600 people, and provides 
indirect employment to another 1,000 including ticket vendors, Disu 
said.  LAGBUS and BRTC operate prepaid ticketing bus services where 
paper tickets are sold wholesale (mostly by designated commercial 
banks) to independent vendors who station themselves at different 
bus stops to sell to commuters.  Some regular commuters also 
purchase bulk tickets in advance for future trips.  The prepaid 
ticketing system makes it easy for the bus companies to recover 
investments and to project income. This is probably the core of the 
system's success. 
 
Fleet Maintenance Procedures Raise Concerns 
------------------------------------------- 
 
¶5. (U) Like BRTC, LAGBUS procured buses with bank loans guaranteed 
by the Lagos State government (LSG). While LAGBUS is a partnership 
between the LSG and private sector investors, BRTC is a partnership 
 
LAGOS 00000320  002 OF 002 
 
 
between LAMATA and the National Union of Road Transport Workers 
(NURTW) who run the company's 220 buses.  Both companies currently 
do fleet maintenance in-house.  Disu said the company's 16-man 
maintenance team, mostly trained on the job, is grossly inadequate 
to service LAGBUS's growing fleet especially with the planned 
introduction of buses using hydraulics.  Disu lamented the dearth of 
experienced mechanics but claimed that the team gets support from 
Daewoo Autoland Nigeria and that Marcopolo Brazil plans to help 
LAGBUS set up a functional maintenance workshop in Lagos. BRTC 
maintenance manager said the company has one workshop, nearby its 
terminal, staffed with locally trained mechanics. (Comment: Although 
the buses have a lifespan of 10-12 years, BRTC plans to replace its 
buses every four years because of wear and tear caused by bad roads 
and low quality maintenance. Poor maintenance is probably a major 
problem for the two companies. End comment.) 
 
Infrastructure Challenges Undermine Success 
------------------------------------------- 
 
¶6. (U) Both LAGBUS and BRTC complained that the bad roads and poorly 
designed road networks have undermined the growth of the business. 
Although Disu acknowledged LAMATA's efforts at rehabilitating 
dedicated BRT lanes, many other lanes and routes are in deplorable 
states.  These cause heavy traffic, resulting in low bus turn-around 
time, leaving commuters stranded and negatively impacting on the 
company's projected income. Disu also outlined poor traffic 
management, inadequate personnel training and capacity, as well as 
inadequate bus stations and depots as other challenges facing the 
both companies. 
 
¶7. (U) Comment: As more car owners stranded in Lagos traffic watch 
the BRTC and LAGBUS buses zoom past in their dedicated, bus-only 
lanes, more are tempted to dump their cars and hop on.  However, the 
bus routes are still limited and Lagosioans that commute from far 
flung areas still have to drive or rely on the privately run mini 
buses.  The more the bus networks can expand outside the metropolis, 
provide park and ride services and integrate with other 
transportation modes like the ferries, the more Lagosians will be 
moved to switch to public transit options. End comment. 
 
¶8. (U) This cable has been cleared by Embassy Abuja. 
 
BLAIR