• New N20/trip levy for Road Improvement Fund
  • Statutory operational licencing fee and renewal fee reduced by 20 per cent
  • Ride-hailing platforms to provide comprehensive insurance for each driver
  • Implementation to start by August 27, 2020.

The Lagos State Government has revealed that it has reversed the plan to impose a 10 per cent service charge on every trip made through e-hailing platforms like Uber and Bolt.

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The Commissioner for Transport, Dr Frederic Oladeinde, made the disclosure after a three-hour meeting with Governor Babajide Sanwo-Olu, some executive council members and ride-hailing operators at Lagos House, Marina.

The Commissioner stated that 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.

From the communique read out after the meeting, the enforcement of the new regulations will now take off from August 27, 2020, instead of August 20 initially announced by the Government.

Oladehinde revealed E-hailing operators would be paying N20 as Road Improvement Fund and it is to be levied on each trip all their drivers make in a day.

The Commissioner said Governor Sanwo-Olu offered a duty incentive to the operators, reducing their statutory operational licencing fee and renewal fee by 20 per cent.

This implies that each e-hailing firm will now pay N8 million per 1,000 cars fresh licencing and renewal, instead of N10 million initially announced.

The parties also agreed on the procurement of comprehensive insurance by the e-hailing companies to cover their drivers and passengers, according to the Commissioner.

He was quoted as saying, “The regulations for the e-hailing companies will take effect from August 27, 2020. We have given an additional one-week extension for all operators to comply.

Given that most of the drivers on the e-hailing platforms have third party insurance, the companies will have comprehensive insurance for each driver while the driver is working with them.

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The insurance will also cover passengers, which amounts to double insurance for the driver.

“We also discussed the issue of service tax, which was initially defined as 10 per cent charge. We have come to resolution that the levy will become a flat fee of N20 per trip. We no longer call it service tax; we now call it Road Improvement Fund, which will be levied per trip.

We also came to resolution that there will be reduction in operational licence by 20 per cent. Likewise, the renewal fee has been reduced by 20 per cent, going forward.”

Oladehinde said the State Government had granted all drivers on the e-hailing platforms an extension of 90 days to perfect all documents and licences, required for operation, including driver’s licence and Lagos State Residents Registration Agency cards.

The Commissioner disclosed that the Government would create a special office for the drivers to fast track necessary registration and documentation before the deadline.

Speaking on the controversial issue of data, Oladehinde said, “We are not asking the e-hailing companies to release detailed data. All we are asking from them data for trip movement, so that we can calculate the right charge and levy due to the Government. This data is to be supplied every week.”

Oladehinde said there was no burden of additional levy on passengers that will be using the e-hailing services, noting that residents’ interest has been protected by the Government.