Uber, Bolt & Others May soon start Paying Millions to Lagos State

Barely a month after the implementation of the ban/restriction on commercial motorcycles, including bike-hailing startups, Lagos State has begun to clamp down on taxi-hailing companies.

In a move that may compound trouble for commuters in Nigeria’s most populated city, the Lagos State government is reportedly working on a new regulatory framework for ride-sharing companies. According to a report by The Guardian, amidst negotiations between Lagos and ride-hailing operators, the new regulations will mandate third-party operators like Uber and Bolt to pay ₦10 million naira and an annual renewal fee of ₦5 million if they have less than 1000 drivers.

What this means:

• Third-party operators that have more than 1000 drivers will pay ₦25 million licensing fee and ₦10 million annual renewal fee.
• 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 more than 50 drivers will pay ₦10 million for the operating license.
• Under the new regulation, the state government will also earn 10% on the fee of each trip
• Under the new regulations, drivers on ride-hailing platforms are required to have LASDRI card and a driver badge issued by the Department of Public Transport and Commuter Services of the Ministry of Transport.

Nothing has been said on the part of the ride-hailing companies, but this will no doubt have an effect on the end users who have to get around Lagos.