Lagos imposes N20 per trip levy on Uber, Bolt and others, reverses initial 10% service charge

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Lagos State government, after a meeting with e-hailing operators, has announced a N20 per trip charge to take effect from August 27,2020. flat fee of N20 to be known as a Road Improvement Fund and to be levied on each ride.

The disclosure was made on Friday in a statement signed by the Chief Press Secretary to the governor, Gboyega Akosile, and entitled ‘Lagos govt, e-hailing operators agree on new regulations’

According to the statement, a meeting between the state government and representatives of the ride-hailing operators was held on Friday, with Governor Babajide Sanwo-Olu in attendance.

The Commissioner for Transportation, Dr Frederic Oladehinde, said the state government and the operators had unanimously adopted the new regulations, after all parties jointly reviewed and fine-tuned some of the contentious items in the framework.

This came as a result of public outcry by riders over an earlier announced guideline for e-hailing companies in Lagos, which was to come into effect on August 20. The initial levy was to be 10% of trip value.

Part of the terms of the agreement was that there must be comprehensive insurance cover for drivers and passengers, there must be due diligence and background checks on all drivers

Riders and drivers are asked to desist from offline trips and transactions and firms are mandated to make all necessary data available to the government.

The commissioner also said the governor offered a duty incentive to the operators, reducing their statutory operational licensing fee and renewal fee by 20 per cent.

“This implies that each e-hailing firm will now pay N8m per 1,000 cars fresh licensing and renewal, instead of N10m initially announced,” the statement said.

 

 

 

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