Lagos Reverses and Updates Ride Hailing Service Charge and Licensing Policies

Lagos Reverses and Updates Ride Hailing Service Charge and Licensing Policies

Nigerians complained and we joined: neither increase license fees on ride hailing companies like Uber and Bolt, nor impose a 10% service charge on them, in Lagos.

Yes, Lagos will now collect 10% service tax on Uber, Bolt and all e-taxis. That is for Lagos. This new 10% does not substitute current fees and taxes!

More so, “the law now mandates operators to acquire a provisional license at N10 million (about US$26,000) per 1,000 vehicles or less; N25 million (US$65,000) for a fleet above 1,000 and renew annually at N5 million and N10 million respectively“, TC Daily summarizes.

The government of Lagos has responded with some improvements.

Lagos State government on Friday reversed the 10 per cent service charge it planned to impose on every trip made through e-hailing platforms like Uber and Bolt.

The Commissioner for Transport, Dr Frederic Oladeinde, said the state government has reached an agreement with operators to now charge N20 per trip instead of 20 per cent of the charges for each trip. He stated that the N20 per trip charges would be housed under the Road Improvement Fund.

Oladeinde also revealed that the state has approved 20 per cent reduction in the operating and renewal license fees, aside drivers completing their documentation within the next 90 days, adding that commencement date for the implementation of the regulations on the operators has been postponed by a week to August 27, 2020.

The Lagos’ 10% Service Tax on Uber, Bolt, etc with up to N25 Million License Fee

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