Lagos announces 20% cut in licence fees’ for e-hailing operators

The Lagos state government has announced a downward revision on the regulations for e-hailing service operators.

According to a previous draft document on the regulations, service operators with less than 1,000 vehicles were expected to pay N10 million as an 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 generated negative reactions with Nigerians expressing concern over a 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 per cent, while the decision on a 10 per cent 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.

“Regulating is to create a level-playing field for different operators,” the commissioner said.

“When you have different operators in the market, it drives the price down and one of the agreements that we had in our meeting is to ensure that this road fund which we are charging goes to the operators, not the drivers.

“And we will be regulating the operators, so the government is there to ensure that we do not pass the price to the customers and that’s why we are regulating.”

BusinessLive reports that the new guidelines will take effect from August 27, 2020.