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Nigeria: Uber, Bolt drivers face uncertain future as Lagos begins new regulations

The spokesperson for Lagos State Ministry of Transport Bolanle Ogunlola confirmed that the new regulations will start on August 20.

Ola Olaoluwa
Ola Olaoluwa

Respite for drivers on e-hailing services will end later in August when Nigeria's Lagos State Government’s new regulations for ride-hailing services take effect.

Under the new regulations, which were earlier scheduled to take effect in March, third-party operators like Uber and Bolt that have over 1000 drivers on their platforms will pay ₦25 million licencing fee and ₦10 million annual renewal fee.

Image Credit: Stock Image

Those that have less than 1000 drivers will pay a licensing fee of ₦10 million and an annual renewal fee of ₦5 million if they have less than 1000 drivers.

Operators who directly own their cars and employ their drivers will pay only the license fee of ₦5 million if such operators have below 50 drivers. Those who have over 50 drivers will pay ₦10 million for the operating license.

E-hailing operators are also to pay 10 per cent “service tax” on “each transaction paid by the passengers” and are mandated to renew their licenses three months before the expiration of the current licence.

The president of the National Union of Professional App-Based Workers Ayoade Ibrahim told The Guardian on Monday that the new regulations put a heavy burden on the drivers and expose them to the whims of ride-hailing companies.

The spokesperson for Lagos State Ministry of Transport Bolanle Ogunlola confirmed that the new regulations will start on August 20. She said the enforcement of the guidelines will not start until after a stakeholder meeting is held.

Digital inclusion

Ola Olaoluwa

Writer | Economist | Actor | Fashion Entrepreneur