Lagos, e-hailing operators reviews regulations, agree on 20% cut in license fees

Lagos, e-hailing operators reviews regulations, agree on 20% cut in license fees

The Lagos state government has revised the regulations for e-hailing service operators. Service operators with less than 1,000 vehicles were expect

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The Lagos state government has revised the regulations for e-hailing service operators.

Service operators with less than 1,000 vehicles were expected to pay N10 million as operational licence fee, while those with more than 1,000 vehicles will pay N25 million. Also, ride-hailing operators with less than 1,000 vehicles are expected to pay an annual renewable fee of N5 million, while those with more than 1,000 will pay N10 million.

The new directives had generated various reactions, with Nigerians expressing concern over possible increase in fares for customers. However, after a meeting with stakeholders on Friday, Frederic Oladeinde, Lagos commissioner for transportation, announced a review of the regulations.

Also present at the meeting were Babajide Sanwo-Olu, governor of Lagos; Gbenga Omotoso, commissioner for information and strategy; Idris Sonuga, national president of Professional E-hailing Drivers and Private Owners Association (PEDPA), as well as representatives of Bolt, Uber and BMP Car.

According to Oladeinde, the operational licence fee has been reduced by 20 percent, while the decision on 10 percent service charge per trip has been reversed, but a flat fee of N20 per trip will be paid to the state as “road improvement fund”.

However, all operators must have comprehensive insurance which will cover drivers and passengers, while drivers have been given 90 days to get proper documentation in line with the new regulations.

Operators are also expected to conduct thorough background checks on drivers to ensure quality service delivery. The new guidelines will take effect from August 27, 2020.