₦airaland Forum

Tears for drivers, cheers for agberos: How N45bn annual levies pressure Lagos SMEs, inflate transport fares.

In the bustling streets of Nigeria’s commercial capital, millions of naira flow every day from buses into the hands of informal collectors; agberos and union officials.

Behind the chaos and roadside disputes, Lagos’ commuters, small business owners and drivers quietly shoulder a shadow tax system that drives fares up, enriches a few, and leaves the city’s transport economy in disarray, TEMITOPE AINA report

In Lagos, Nigeria’s commercial capital, a costly, unofficial toll shadows the city’s roads. The Lagos Metropolitan Area Transport Authority estimates that there are 75,000 commercial buses navigating the streets, each paying ticket touts, popularly known as agberos, between N1,500 and N2,000 daily.

These shadow levies drain drivers of an estimated N112.5m to N150m every day in Lagos alone, quietly siphoning billions from the transport system each year. A situation that has continued to undermine the growth of MSMEs. Despite government bans and official denials, the collections persist, pushing up daily fares and burdening both drivers and commuters across the city.

It was barely 6am on Monday December 8, 2025. The sky was still pale with dawn, but the park beneath the Ikeja under bridge was already alive with nervous energy. Commercial drivers lined up beside the road, hands clutching naira notes collected from passengers. Men in ripped jeans and round-neck shirts, or green trousers and caps marked NURTW, moved briskly between them, collecting what drivers quietly call owo ero (‘money taken from passengers’).

Some drivers muttered under their breath. Others argued or exchanged heated words. A few handed over cash in silence. The air was thick with tension, fear and frustration.

A commercial bus driver stepped out of his shuttle, popularly known in Yoruba as korope, an eight-seater including the driver’s seat, at Ikeja. He wore knee-length jeans, a red shirt and battered slippers, shouting “Berger straight!” repeatedly, the familiar call for passengers heading towards the Mowe axis of Ogun State.

Within moments, a dark-eyed man appeared nearby, repeating the same call to attract passengers. The bus was finally full. Engines rumbled. But the morning ritual was far from over.

What promised to be a smooth journey quickly descended into delay. Voices rose as the driver slammed the brakes, forcing all passengers to alight. With frustration etched across his face, he yelled in his local dialect, “What exactly do you people want?” The lout, eyes blazing, shouted back, “Give me my money!” The argument spilled beyond the park, continuing even as the bus drove away.

SMEs Are Not Left Out
In the bustling markets, workshops, and startups across Nigeria, Small and Medium-sized Enterprises hum with life, forming the backbone of the nation’s economy.

They contribute nearly half of the country’s Gross Domestic Product and provide employment for eight out of ten Nigerians. Yet, these businesses thrive amid relentless challenges, from inconsistent policies to financial pressures, informal levies that eat into their profits.

At Oshodi under bridge in Lagos, these pressures take an even more personal toll. I overheard a lady, identified as Mummy Chisom selling plantain talking to a colleague, frustration evident in her voice as she watched drivers being harassed by louts. What should have been a 30-minute journey turned into a N3,000 ordeal, forced contributions to high fares, greedy drivers, and self-appointed “transport bosses” along the way.

“I can’t believe I’m paying N3,000 for a ride that should take just 30 minutes,” she sighed, shaking her head. “Everywhere you look, someone wants a cut—drivers, touts, even those so-called bosses. It’s like surviving Lagos costs more than living in it.”

What plays out daily across Lagos motor parks is therefore not just a transport problem, but a parallel taxation system that quietly spreads through the economy. Drivers pay before they move. Commuters pay through inflated fares. Businesses pass rising costs on to consumers. Billions of naira circulate annually without appearing in any government ledger.

As official denials and reform promises persist, collections continue in broad daylight across major corridors. Until this informal levy system is confronted with transparency, enforcement and accountability, Lagosians will continue to pay a tax with no receipt, no clear beneficiary and no visible end.

Daily Struggle
Across Ikeja, Oshodi, Ojodu-Berger and Obalende, drivers described a predictable and organised system of collections, marked by fixed locations, fixed times and fixed amounts.

Collections typically begin as early as 5:30 a.m., peak during morning rush hours and repeat in the afternoon and evening. Each park or corridor has designated collectors, supervisors and area coordinators who ensure daily “targets” are met.

[i]“The daily hustle of commercial drivers and commuters is filled with extortion, people paying illegal taxes indirectly without even knowing,” said Baba Ibeji, a commercial driver at Oshodi.[/i]


The conductor shoved me aside. “Madam, go front!” he snapped. “Can’t you see how many people I have to pay? I pay the agbero, the NURTW officials, for loading, for passengers. And that’s not the end. We pay again along the route. What am I left with at the end of the day?”

Barely 30 seconds away from the previous park, another voice rang out, “Obalende! VI! Falomo!” I asked for the fare. “N1,200,” I was told. Surprised, I asked in pidgin English why the prices differed. “Madam, we have different bosses and different operations here,” the conductor replied.

Lowering his voice, he added, “For this route, I pay about N4,000 daily to louts, not even counting NURTW officials. I budget N3,500 before reaching Eko Hotel, my final stop. Out of the N22,000 collected on a trip, I’m left with around N10,000. Fuel and other deductions still come on top.

“Over 2,000 commercial vehicles pay these dues daily just to survive and feed their families. Imagine Mushin, Mile 2, Yaba; thousands of buses every day. This runs into millions daily, billions yearly.” Chidindu hissed, sighed, and flung the door open for another passenger.

Drivers across four parks independently described a three-layer collection structure: park collectors, area coordinators and union executives. Daily targets are allegedly remitted upward, while collectors retain commissions.

Hidden Billions?
At Ojodu Berger, a major transport artery teeming with traders, corporate workers and commuters, the hidden economy played out in plain sight.

From atop the bridge, our correspondent watched men in green-and-white NURTW uniforms shout for their share as drivers handed over cash without hesitation. On board a Mowe-bound bus, seated beside the driver, I asked why he handed a man N1,000. “We’re used to it,” he said flatly.

“These people make at least N1 million daily just at Berger Straight, not to talk of Ojodu Berger,” Wasiu, who plies the route daily, said. “Transport tax officials have ranks. Some earn N200,000 monthly. Park chairmen collect up to N500,000 daily. Small boys make about N2,000 a day. With over 2,000 buses passing here every day, they can make N5 million daily, sometimes over N160 million monthly.”

“If you think Ojota is bad, Obalende, CMS and Mile 2 are much worse,” the conductor said, drawing from years on Lagos roads. “When you put all the collections together, you’ll understand why people say they don’t take anything, that’s a lie.”

When Fares Ignore Official Rates
Official transport fares, drivers say, rarely survive the realities of Lagos roads. On the Lagos–Mowe corridor, operators insist that government-approved rates bear little resemblance to what commuters actually pay.

“The fare to Mowe is supposed to be between N300 and N400,” a conductor explained. “But we charge N700 to N1,000 depending on traffic. If there is an accident or a serious delay, it can rise to N1,500 or even N2,000. And no matter what happens, we still pay the levies.” Drivers across multiple parks independently confirmed similar figures, suggesting a standardised but undocumented levy structure operating across the city.

According to him, multiple agencies operate along major transport corridors, and drivers are expected to “settle” their way through. The police, traffic officials, everybody knows how they settle themselves. None of them claims to be innocent.”

Who Collects the Money? Drivers across several motor parks described a three-tier collection structure underpinning the informal levy system. At the base are street collectors who collect cash from drivers on a per-trip basis.

Above them are area coordinators who supervise collections across multiple parks and corridors, ensuring daily targets are met. At the top are union executives, who drivers allege receive daily remittances from these collections.

Collectors reportedly retain commissions, while bulk sums move upward through informal channels without receipts, documentation or public records. The absence of transparency makes the flow of funds difficult to trace.

For drivers, the most troubling question remains unanswered. “Some say the money goes to the government, others say it goes into private pockets,” Ayinde said. “What we know is that drivers and commuters are the ones carrying the pain.”

He warned that the situation is becoming more alarming as discussions around new taxes continue. “After everything we already pay on the road, they are talking about new taxes,” he said. “How do they expect people to grow under this kind of system?”

A System in Need of Clarity
What emerges from Lagos motor parks is not merely a story of rising fares, but of a transport economy operating in layers. Formal rules sit above, informal realities below. Until those layers are reconciled, drivers say, passengers will continue to pay far more than official rates, and the city’s daily movement will remain shaped by costs that never appear on any receipt.

Inflation by Another Name
Chief Economist and Managing Editor of Proshare, Teslim Shitta-Bey, says Nigeria’s economic challenge extends far beyond formal government taxation. According to him, illegal levies, unaccounted charges and systemic leakages across institutions continue to impose high costs on citizens.

Speaking in an interview, Shitta-Bey said many charges Nigerians pay daily never enter the official fiscal system, creating what he described as “financial leakage” that worsens inflationary pressure and the cost of living.

“In a normal system, drivers earn income and unions take a percentage through a clear check-off process,” he said. “Here, money is collected at every bus stop, per passenger. These funds are not accounted for and do not enter the fiscal system. That is leakage.” According to him, the burden of these collections is passed directly to commuters.

“The driver tries to recover the loss, so fares increase. Even when petrol prices drop, transport fares do not come down.” He questioned why reductions in fuel and food input costs have not translated into lower prices for consumers.

“Petrol prices have dropped, but transport costs have not. Flour prices have fallen. Rice has dropped from about N120,000 per bag to between N60,000 and N65,000. Yet food prices and portion sizes remain the same." Shitta-Bey argued that exploitation exists not only at the government level, but within society itself.

“That is the point,” he said. “It is not only the government. We are also doing it to ourselves. People need to be called out. The best way forward is to explain these issues clearly so everyone understands where the real problems lie.”

Lagos Government Is not Aware – Akosile
The Lagos State Government has denied knowledge of any institutionalised or approved collection of money from commercial drivers by officials of the National Union of Road Transport Workers, describing reports of such practices as unfounded.

Gbiyega Akosile, Commissioner for Information and Strategy, spoke in response to allegations that individuals wearing green-and-white uniforms collect money from drivers along major roads.

“Our tax system is well institutionalised and properly structured. There is nothing like that,” Akosile said. “The allegation that money is being collected for the state government in that manner is unfounded. It is preposterous.”

While acknowledging the existence of transport unions, the commissioner insisted that the government does not sanction any roadside payment system operated by NURTW officials.

“Trade unions have their internal modes of operation among their members, but I am not aware of any institutionalised payment system by NURTW to the Lagos State Government,” he said. Akosile admitted that he occasionally saw individuals in green-and-white attire on Lagos roads but could not confirm their activities.

“All I said was that once in a while, I have seen a couple of guys in green and white when I drive around. I do not know what they do because I am not a member of the union and I do not work with them,” he explained. “Seeing uniformed persons on the road does not automatically mean they are collecting money.”

Addressing concerns that alleged levies might be contributing to rising transport fares and the high cost of goods, the commissioner assured that the government would not tolerate extortion.

“I do not think putting pressure on people who operate buses is acceptable to the Lagos State Government,” Akosile said. “The governor is known to be sympathetic to the people. The government will not sit back and watch any group of persons extort drivers or commuters.”

He emphasised that any individual found engaging in illegal activities on Lagos roads would face consequences. “Anyone found extorting or operating illegally on the streets of Lagos will be dealt with accordingly,” he said.

All efforts to reach the President, National Union of Road Transport Workers, Musiliu Akinsanya, popularly known as MC Oluomo and a popular leader of the NURTW, Akeem Abodunrin, known as Iyeru, proved abortive as several calls and messages were not responded to as of the time of filing this report.

Lagos Moves to End Unregulated Transport
Beyond denials, the Lagos State Government has reiterated its commitment to regulating commercial vehicle operations through structural reforms, multimodal transport options, and the phased implementation of the Bus Reform Initiative (BRT).

The Public Relations Officer of the Lagos State Ministry of Transportation, Bolanle Ogunola, said the ministry continues to oversee commercial vehicle operators while engaging stakeholders to maintain order in the sector.

“In terms of regulation of commercial vehicle operators in Lagos State, the Ministry of Transportation has the oversight function. That is why the ministry has regularly engaged with them,” Ogunola said. “You will notice that there is now relative peace among the players, unlike what we used to experience in the past when there was always chaos and brouhaha.”

She highlighted that the state government has expanded transportation choices through a multimodal system designed to reduce pressure on road transport and improve mobility.

“The state government has provided options for citizens through the multimodal transportation system currently available. This includes the Blue Line and Red Line rail services, ferry operations, and the Bus Rapid Transit (BRT) system,” Ogunola explained. “We are also promoting non-motorised transport such as cycling and walking. All these provide sustainable and viable alternatives for Lagosians.”

The government is also standardising key transport corridors to pave the way for the full rollout of the Bus Reform Initiative, aimed at formalising bus operations and eliminating unregulated activity.

“There is ongoing standardization of some transport corridors that will eventually give room for the Bus Reform Initiative, which is a statewide programme developed to create a logical and regulated bus transport system across Lagos,” Ogunola said.

“Under this programme, the unregistered and unrecognised players we currently see on our roads will no longer operate.” Implementation of the BRI has already commenced along the Lekki–Epe corridor, where public transport is being restructured.

“The BRI has commenced on the Lekki–Epe corridor, where public transport is being transformed,” Ogunola said. “Smaller-capacity buses are being adopted for inner routes, while modern, regulated high-capacity buses are introduced to serve major highways.”

According to Ogunola, the availability of multiple transport options empowers residents to make personal mobility choices.

“When there are options, people will decide which one works for them. It is similar to the banking system where individuals choose their preferred service provider,” she said. “If you live along a corridor served by the Blue or Red Line trains, there may be no need to depend on road buses. Others may prefer ferry services. These are personal decisions that are not compromised by any external factor.”

Ogunola added that commercial vehicle operators remain key stakeholders in the ongoing reforms and have expressed willingness to cooperate with the government.

Many charges Nigerians pay daily never enter the official fiscal system, creating what he described as “financial leakage” that worsens inflationary pressure and the cost of living.

Racoon:
The touts, alayes, owomida miscreants, illegal revenue collectors just ripping struggling citizens of their hard earned income @every nooks and crannies of Lagos without probity, accountability and decency is really worrisome

This is the effects of instituting a large swathes of anti-social elements by the Capone himself in a large commercial city and former capital of a nation. Everyone feels the heat.

Racoon:
The touts, alayes, owomida miscreants, illegal revenue collectors just ripping struggling citizens of their hard earned income @every nooks and crannies of Lagos without probity, accountability and decency is really worrisome

This is the effects of instituting a large swathes of anti-social elements by the Capone himself in a large commercial city and former capital of a nation. Everyone feels the heat.

Racoon:
NURTW, RTREAN thugs are not accountable to no one? This must be a silly joke. And the central govt is still busy imposing choking taxes on the citizens? Then they all claim ignorant of this hardship?

Meanwhile MC Oluomo children are in the US. How will his lieutenants not be living big.Yet you wants people to pay tax? Let the citizens breathe! Otherwise the French peasant revolution is going to happen in Nigeria one day

benardtotti:
NURTW ,agbero tax is everywhere oga ! It has nothing to do with any capone, go to ogun state, oyo, anambra, they all collect daily dues from drivers .stop this nonsense of always trying to paint lagos black .

madridguy:
Who made them illegal revenue collectors? They are registered and legally recognized in Abuja.

madridguy:
Leave MC Oluomo and his children out of this. NURTW are everywhere in Nigeria.

madridguy:
Aside the government officials are using the money generated through agberos to flex, I see no reason why a state like Lagos will not have the best road network in the whole world..

With huge amount generated daily through agbero, Lagos should be the best in terms of roads with street lights, free toilets at almost every bus stop but the money is not being used judiciously. ...

DoTheNeedful:
Many of you that criticize do so either maliciously or due to ignorance.

Our tax collection rate in Nigeria is one of the poorest even in Africa. The understanding of tax by Nigerians terrible. Many of you need to get it into your heads that tax payment is vital for any society to thrive.

benardtotti:
Nurtw ,agbero tax is everywhere oga ! It has nothing to do with any capone, go to ogun state, oyo, anambra, they all collect daily dues from drivers .stop this nonsense of always trying to paint lagos black .

Racoon:
Yes but sad that road and motorpark toutism is now part of our national life. However Lagos set the template long time ago because these touts were willing political thugs bred by their demigod there.

Remember that Lagos too under Tinubu also set up the template of retired governors lavishing themselves with the resources of their state to the detriments of development post retirement. A bad precedence has long been set.

madridguy:
Who made them illegal revenue collectors? They are registered and legally recognized in Abuja.

benardtotti:
Nurtw has been collecting dues long before tinhbu became governor, I don't know why you keep trying to tie everything to Tinubu.

benardtotti:
Nurtw ,agbero tax is everywhere oga ! It has nothing to do with any capone, go to ogun state, oyo, anambra, they all collect daily dues from drivers .

stop this nonsense of always trying to paint lagos black .

madridguy:
Aside the government officials are using the money generated through agberos to flex, I see no reason why a state like Lagos will not have the best road network in the whole world.

With huge amount generated daily through agbero, Lagos should be the best in terms of roads with street lights, free toilets at almost every bus stop but the money is not being used judiciously.

That aside, the drivers complaining are the biggest criminals in the scheme of things. They wickedly hike their price and blame it on agbero.
In my area, from my junction to the bus stop was #50 both Korope/Keke Napep before covid period. When the government ease the locked down and introduce social distancing, they add #50 naira since they can only carry two passengers.

When everything returns back to normal, instead to bring the price down they hike it again to #150.

Fast forward, when Jagaban came onboard, removed subsidy, they increased to #300.

Around early 2025, the local government have to fix the road and vehicles are diverted to pass another road, because of the small diversion, they added another #100 and make it #400. Government finished the road in less than 2 months, everywhere is now very smooth, Korope and Keke operators refused to bring back their old price. No fuel hike, no queue at the fuel stations, smooth road yet they didn't bring down the price.

The NURTW are doing their own but the yellow bus operators are demons too.

Richtaiwo:
These informal toll system introduced by various transport unions in Lagos is not just disturbing, it is auditioning for a comedy series nobody asked for. Even more alarming is the fact that many of these toll collectors have absolutely nothing to do with transportation. They are simply an organised cartel of physically strong, chronically unemployed illiterates who wake up daily to invent taxes with the confidence of a national budget committee.

For commuters trapped in intra-city transport, this madness hits hardest, as fares mysteriously hike because of these touts. Take a simple journey from Ikeja to Ikoyi, for example. You cannot board a single vehicle straight through because these men have neatly divided the route into exclusive territories. Miss a payment in any zone, and you risk being forcefully reminded, through noise, threats, or chaos, that you have entered the wrong kingdom without tribute.

At this point, the only sane escape from this circus appears to be ride-hailing services like Uber, where at least the extortion comes bundled with a receipt.

That said, another mystery worth investigating is why every analysis of this problem always zooms in on Lagos. Are we pretending that places like Aba, Onitsha, Owerri, and others are immune to similar, or even worse, forms of daylight robbery? Is it now a crime to enlighten the public about arbitrariness outside Lagos so commuters can prepare themselves mentally, emotionally, and financially?

Or is it that whatever happens in those places does not matter? Do human beings not reside there as well, or have they been silently reclassified as supporting characters in the Lagos drama series?

One really wonders.

madridguy:
Who made them illegal revenue collectors? They are registered and legally recognized in Abuja.

benardtotti:
Nurtw ,agbero tax is everywhere oga ! It has nothing to do with any capone, go to ogun state, oyo, anambra, they all collect daily dues from drivers .stop this nonsense of always trying to paint lagos black .

madridguy:
Aside the government officials are using the money generated through agberos to flex, I see no reason why a state like Lagos will not have the best road network in the whole world.

With huge amount generated daily through agbero, Lagos should be the best in terms of roads with street lights, free toilets at almost every bus stop but the money is not being used judiciously.

That aside, the drivers complaining are the biggest criminals in the scheme of things. They wickedly hike their price and blame it on agbero.
In my area, from my junction to the bus stop was #50 both Korope/Keke Napep before covid period. When the government ease the locked down and introduce social distancing, they add #50 naira since they can only carry two passengers.

When everything returns back to normal, instead to bring the price down they hike it again to #150.

Fast forward, when Jagaban came onboard, removed subsidy, they increased to #300.

Around early 2025, the local government have to fix the road and vehicles are diverted to pass another road, because of the small diversion, they added another #100 and make it #400. Government finished the road in less than 2 months, everywhere is now very smooth, Korope and Keke operators refused to bring back their old price. No fuel hike, no queue at the fuel stations, smooth road yet they didn't bring down the price.

The NURTW are doing their own but the yellow bus operators are demons too.

madridguy:
Aside the government officials are using the money generated through agberos to flex, I see no reason why a state like Lagos will not have the best road network in the whole world.

With huge amount generated daily through agbero, Lagos should be the best in terms of roads with street lights, free toilets at almost every bus stop but the money is not being used judiciously.

That aside, the drivers complaining are the biggest criminals in the scheme of things. They wickedly hike their price and blame it on agbero.
In my area, from my junction to the bus stop was #50 both Korope/Keke Napep before covid period. When the government ease the locked down and introduce social distancing, they add #50 naira since they can only carry two passengers.

When everything returns back to normal, instead to bring the price down they hike it again to #150.

Fast forward, when Jagaban came onboard, removed subsidy, they increased to #300.

Around early 2025, the local government have to fix the road and vehicles are diverted to pass another road, because of the small diversion, they added another #100 and make it #400. Government finished the road in less than 2 months, everywhere is now very smooth, Korope and Keke operators refused to bring back their old price. No fuel hike, no queue at the fuel stations, smooth road yet they didn't bring down the price.

The NURTW are doing their own but the yellow bus operators are demons too.

wirinet:
The "it happens everywhere argument". That a crime happens everywhere is justification for its happening in Lagos? For your information, agberoism was introduced in Lagos by the Tinubu Administration. It was from Lagos Island it spread to other parts of Lagos and then other parts of Nigeria. Some miscreants tried to introduce it during the timevof Buba Marwa, he rounded them all up, and rehabilitated (locked them up) them in Epe.

keemsleek:
Don't mind them go benin go see them, I even heard onitsha ones mad pass lagos own.
They will keep hiding there's as if it happens in lagos alone.kettle calling pot black.