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The Lagos State government is not relenting on its ambition to hunt down the thriving gig economy in Lagos. From banning Gokada and Co on major roads to slamming a 10Million naira License fees on ride-hailing brands.

This fee comes with an annual renewal fee of 5 Million Naira coming from a proposed regulation announcement by the Lagos State Government.

In the past couple of weeks, there have been consistent reports of car vandalism by the VIOs allegedly directed by the government. Drivers of these ride-hailing brands complained of harassment and torment from the officers. Their reasons according to a driver are because of the absence of a “hackney permit” and “LASDRI certification from the Lagos State Drivers’ Institute.

It is expected that when this regulation is activated which would soon be ticking, the ride-hailing companies will have to pay 10 Million Naira and 25 Million Naira if their car fleets are below 1000 and above 1000 respectively. This regulation does not also leave out regular transport companies. They are expected to pay 5Million naira and 10Million naira if their drivers are below 50 and above 50 respectively.

Ride-hailing drivers would be required to obtain a Hackney Permit, Lagos State Drivers’ Institute (LASDRI) Card and a Badge for Recognition

As part of the regulation, the drivers would be identified with Badges which would be given by the Department of Public Transport and Commuter services. This is if they want to continue operations in Lagos State. In addition, they are required to obtain a Hackney Permit which costs about N15,000 plus a tag which is supposed to be given by the Lagos State Vehicle Administration Agency (LAGVAA).

That’s not all!

The regulation which is intended to kick-off as at March 1st, 2020 would see the Lagos State Government share profits with the Ride-hailing companies. For every ride, they’ll be returning 10% to the government. As you know, the ride-hailing companies already collect a considerable percentage from the Drivers per ride. It is unclear what their decision will be considering the recent developments.

However, the president of the National Union of Professional E-Hailing Driver-Partners (NUPeDP), Ayoade Ibrahim expressed confidence that the government’s 10% won’t be the drivers’ burden to bear. The chairman expressed regret that car-hailing companies have failed to recognise the union and as such, can’t work hand in hand with them.

Just like the case of the Bike-hailing startups – this full enforcement does not seem to be a joke. It is gathered that the Taxi-hailing companies have already prompted their drivers on the latest development as they work on negotiating for common ground. As of today, Uber has also reportedly listed “valid Hackney permit” as one of the criteria for enrolling new vehicles on its platform.


About Author

Owen Shedrack is an entrepreneur and astute writer. He reports and contributes for TechCultureNG on start-ups, tech and ecosystem intelligence. He sits as founder, and Executive Director at “The Groth Innovation Centre” – a business incubator and innovation hub providing professional business support services for SMEs.

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