Africa: Ride-hailing companies, Uber and Bolt faces hurdle as Lagos initiates new regulations


Ride-haling companies in Lagos might be riding against the tide as the government plans a new range of regulatory guidelines for major companies like Uber and Bolt which operate in the state.

According to, the new regulations, which includes annually renewable licensing fees and a service tax on “each transaction paid by passengers” are expected to come into full force on August 20, this year.

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.

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 license.

In an attempts by our reporter to reach out to Uber and Bolt spokespersons was not reachable on phone and an email sent was not replied at the time of filling this report.


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