A lot of the funds and financing for the transport projects put into place by LAMATA are done through World Bank. The World Bank is a financial institution partners with developing countries to improve infrastructure through various projects (World Bank). In Nigeria, the World Bank has pushed for  the formation of a transport authority, which became LAMATA. This authority was one of the conditions for funding Lagos Urban Transport projects.

One of the reasons for the delay of the rail system is “the non-approval of the World Bank loan by the Federal Government” of Nigeria. Since the loan was not approved, funding from private investors was sought after (Salau). The initial failure to develop the rail system (in 1985) ended in a loss of a lot of taxpayer money, so potential investors may have lost confidence in the current project, especially because of the delayed timeline. 

Earlier transport projects in Lagos also had trouble making a profit and returning on investments. Several unsuccessful transport development attempts were made by the state in the earlier half of the 20th century. One example was the state ferry service. The main issue it faced was its inability to return a profit. The cost of providing the service was not covered by the fares, and the prices could not be increased without people turning back to private operators for water transport (Olukoju).

Another example of a service that failed due to lack of profit was the electric tramway on Lagos Island. This was the original public transport service in Lagos and it lasted for about 30 years until 1933. The operational costs far outweighed revenue, which lead to losses that eventually led to the closure of the service.

The loss of faith in LAMATA’s progress and Lagos’ history contributes to a general unwillingness to invest in the rail project which has slowed progress even further.