Lagos State Government Enforces Rules on Ride-Hailing Operators.

The ministry of transportation, Lagos State has brought forth regulatory documents for taxi operators and ride-hailinh companies like Taxify, Uber and others in the same line of work. These rules are set to roll from the 20th of August, 2020.

According to Techpoint Africa, in March 2020, the Lagos State Government was planning to regulate the e-hailing sector. This was two months after its ban on commercial motorcycles (Okada) forced operators like MAX, Gokada, and ORide to cease operations.

It was stated in the report above, that Uber and Bolt drivers are expected to have a Lagos State Drivers’ Institute (LASDRI) card and a driver badge issued by the Department of Public Transport and Commuter Services of the Lagos State Ministry of Transportation.

Uber and Bolt do not regard themselves as transport companies, but Uche Okafor, Bolt’s Regional Manager, West Africa, revealed that regulations have gradually evolved to include e-hailing services.

From August 20, 2020, service entities in the city with less than 1,000 drivers are expected to pay a ₦10 million ($27,341) licence fee, while those with more than 1,000 drivers are to pay ₦25 million ($54,682). Subsequent renewals are pegged at ₦10 million ($27,341) for those with more than 1,000 drivers and ₦5 million ($13,670) for those with less.

Taxi and App Operators with 50 cabs or less are expected to pay a ₦5 million ($13,670) licence fee, while those with more than 50 cabs are to pay ₦10 million ($27,341). The former will pay an annual renewal of ₦1.5 million ($3,870), while the latter will renew at ₦3 million ($7,700).
Other provisions include:

  • All Operators of e-Hailing Taxi Services must pay the State Government 10% service tax on each transaction paid by the passengers to the operators.
  • They must commence the renewal process 3 (three) months before the expiration of the existing licence.
  • They must have a quarterly meeting with the Ministry of Transportation for operational updates and feedback.
  • All operators of e-hailing taxi services must give the Ministry access to their database.

The government is creating an exchange service where these licences can be traded. This seems particularly interesting given the fact that the regulations state that licences will only be given to taxi operators under a franchise.

1 thought on “Lagos State Government Enforces Rules on Ride-Hailing Operators.

Leave a Reply

Your email address will not be published. Required fields are marked *