The president commissioned the terminal as part of his two-day visit to Lagos.
The president had earlier been received by the Lagos State governor, Akinwunmi Ambode, at the Presidential Wing of Murtala Muhammed International Airport for his historic visit.
After inspecting a ceremonial guard of honour at the airport, the president immediately headed for the terminal which is located behind the rail line of the Nigeria Railway Corporation and about 1km from the airport.
According to the Lagos State government, the new bus terminal will connect 22 routes with over 70,000 people expected to transit through the facility daily.
At the commissioning ceremony, President Buhari commended Governor Ambode's work in Lagos and promised support from the Federal Government.
He said, "I commend the Governor for development and strides he recorded within the first three years of governance. I recognize the push of the State Government in reforming public transportation especially the Bus Reform Project which will make modern transport buses that are air-conditioned available to the people.
"I acknowledge the vision of Lagos State Government to revamping the railway transportation system. Presently, we have outlined in new-year message of the plan for a-Pan African Railway Transportation.
"I commend Lagos State for also developing rail infrastructure to cater for movement of its growing population."
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During his speech, Governor Ambode said the terminal was designed to change the face of public transportation in the state, stating that the success of a highly populated, cosmopolitan city-state like Lagos is strongly dependent on the efficiency of its transportation system.
He said, "The Ikeja Bus Terminal is one of our flagship transport infrastructure under the State Bus Reform Initiative. The first phase of this programme will see 13 new Bus terminals introduced including major terminals at Oshodi, Yaba, Ojota, Agege and the already completed Tafawa Balewa Bus Terminal.
"We have commenced the introduction of 5,000 new buses into the Lagos economy in the next 3 years. We will inject 820 environmentally-friendly high capacity buses in the first phase of this reform by September 2018, 300 New Bus Stops, 3 Bus Depots, and Intelligent Transport System which will aid Lagosians to plan their journeys on our public transport system."
After the commissioning, President Buhari left the Ikeja Bus Terminal and headed to Eko Convention Center, Victoria Island, Lagos to chair Bola Tinubu's Colloquium in honour of the birthday of the National Leader of the ruling All Progressives' Congress (APC).