The Lagos State Commissioner for Transportation, Dr. Frederic Oladeinde, said on Wednesday that the state government planned to acquire 2000 units of 11 and 13-seat microbuses to ease gridlock in the state.
Oladeinde stated this when members of the Lagos State House of Assembly Committee on Transportation led by its chairman, Mr. Temitope Adewale, visited the ministry on an oversight activity.
He said: “Governor Babajide Sanwo-Olu has approved plans to partner with private investors for the initial acquisition of the 2000 units buses.
“The state shall provide counterpart funding of 40 percent while the supplier will inject 60 percent equity for the acquisition of the buses.
“The private operator shall be required to make a 20 percent down payment to be eligible to come under the bus finance scheme.
“The state has engaged two companies to provide 1000 buses each, to be used for the First and the Last Mile Bus Schemes.
“They are Origin Automobile Services which will provide the 11 seat buses while CFAO will provide 13 seat buses.”
The commissioner stressed that the plan would further reduce traffic congestion at key major gridlock points in the state, with the corresponding reduction in travel time.