Lagos Begins New Regulations on Uber, Bolt Drivers

Lagos Begins New Regulations on Uber, Bolt Drivers 2

Drivers on the e-hailing services will end later in August when the Lagos State Government’s new regulations for ride-hailing services will 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.

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 Journalists that the new regulations will put a heavy burden on the drivers and expose them to the whims of ride-hailing companies.

Section 4.1 (v) of the new guidelines says: “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.”

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.

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