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The short answer
A danfo owner usually earns a fixed daily payment, called delivery, from the driver, and pays for major repairs, papers and lost days out of it. In our labelled example, ₦30,000 a day for 23 working days leaves the owner about ₦450,000 a month after repairs and reserves, so a ₦20 million bus takes around 44 months to pay back.
How the danfo model works
Danfo is the name Lagosians use for the yellow commercial minibuses that run fixed routes across the city, loading at garages and bus stops. Most owners do not drive. They hand the bus to a driver, who pays a fixed sum each day, known as delivery or returns, and keeps whatever is left after fuel, levies and the conductor. The owner's income is therefore steady when the bus works, and zero when it does not.
Lagos has been expanding its regulated bus and rail network, which you can read about in our Lagos commute budget guide. Check with the Lagos State Ministry of Transportation for any current rules on commercial bus registration, route permits and age limits before you buy, as we could not confirm these from an official page.
What the owner pays for
- The bus. Price depends on model, year and condition; get several quotes and have a mechanic inspect it.
- Papers. Plates (standard commercial plates cost a minimum of ₦30,000 under the circular effective 1 November 2024), vehicle licence and roadworthiness papers.
- Insurance. Third-party is compulsory; ask insurers for a commercial passenger quote, as NAICOM's 2023 circular as reported does not list a separate rate for public buses.
- Major repairs. Engine, gearbox, suspension and tyres, usually the owner's cost under most delivery arrangements.
- Lost days. Days when the bus is in the workshop or impounded, when no delivery is paid.
What the driver pays for
Under a delivery arrangement the driver typically carries daily fuel, the conductor's pay, garage loading fees and union or park levies. Union and levy amounts vary by route and garage and are not published on an official page we could find, so ask the garage and the union branch on your route what is collected per day and per trip. The driver's licence must be of the commercial class; the FRSC portal says commercial licences need a medical certificate.
A worked example for owner and driver
Example only; every figure is an assumption. A bus bought for ₦20,000,000. The driver pays ₦30,000 delivery a day. The bus works 26 days a month but loses 3 to repairs.
The owner's month
| Line | Per month (example) |
|---|---|
| Delivery: 23 days × ₦30,000 | ₦690,000 |
| Routine repairs and servicing | −₦150,000 |
| Tyre reserve | −₦40,000 |
| Papers and insurance reserve | −₦20,000 |
| Towing, fines and surprises | −₦30,000 |
| Left for the owner | ₦450,000 |
At ₦450,000 a month, the ₦20,000,000 bus repays itself in about 44 months, before any major engine work and before the bus's value falls. If the bus loses 8 days instead of 3, delivery drops by ₦150,000 and payback stretches past five years.
The driver's day
| Line | Per day (example) |
|---|---|
| Fares collected | ₦85,000 |
| Fuel | −₦30,000 |
| Garage and union levies | −₦7,000 |
| Delivery to owner | −₦30,000 |
| Conductor | −₦10,000 |
| Left for the driver | ₦8,000 |
This is why delivery is often argued over. If fuel rises by ₦5,000 a day, or a levy is added, the driver's share falls to ₦3,000 and the temptation is to overload, skip maintenance or stop paying delivery. A delivery figure that leaves the driver a fair day's pay tends to protect the owner's bus.
New bus or used bus
A newer bus costs more but should lose fewer days to repairs, which the example shows is the biggest swing in owner income. An older bus is cheaper to buy, but each extra day in the workshop costs ₦30,000 in lost delivery as well as the repair bill. Before buying, ask a mechanic to price the likely repairs over the next year and add them to the purchase price; the cheaper bus is not always the cheaper choice. Check also whether any age or roadworthiness rule for commercial buses on your route could force the bus off the road early.
Ways owners protect their income
- Write the delivery agreement down: amount, days, who pays for which repairs, and what happens on days the bus is off the road.
- Agree a weekly inspection and keep a service log.
- Use a trusted mechanic and buy genuine parts where possible.
- Keep a reserve for a major repair rather than spending every month's income.
- Record every payment; see how fleet owners track weekly pay-ins.
What to check first
- Current Lagos rules for commercial buses on your intended route.
- The bus's papers match the seller and its chassis number.
- Insurance quotes before purchase.
- A driver with a valid commercial licence and a reference from a previous owner.
Where Pryme fits
An owner can receive daily delivery by transfer into a Pryme account, keep the repair reserve in a Naira Savings Box, and use Send to pay the mechanic. Read how to start a transport business for the wider picture.
Questions people ask
How much does a danfo driver pay the owner daily in Lagos?
It is agreed between owner and driver and varies by route and bus condition. We use ₦30,000 a day only as an example; write the figure and what it covers into an agreement.
Is danfo business profitable in Lagos?
It can be, but slowly. In our example, a ₦20 million bus earning ₦30,000 delivery on 23 days a month leaves the owner about ₦450,000 a month and takes about 44 months to repay.
Who pays for repairs on a danfo?
Usually the owner pays for major repairs and the driver for daily fuel and levies, but this should be agreed in writing because arrangements differ.
How much do danfo drivers make a day?
It depends on fares, fuel, levies and delivery. In our labelled example, a driver collecting ₦85,000 keeps about ₦8,000 after fuel, levies, delivery and the conductor.
Sources
- Nigerians to pay more for number plates, driver's licence (The Guardian, Oct 2024) · accessed Oct 2026
- NAICOM: vehicle owners to pay higher insurance premium rates from Jan 1 (TheCable, 24 Dec 2022) · accessed Oct 2026
- FRSC National Driver's Licence portal: FAQ · accessed Oct 2026
This article is general information, not financial, legal or tax advice. Products described are provided under the terms on this site and are subject to regulation and eligibility.