Download the full document – Guidelines for Online Hailing Business Operation of Taxi in Lagos State, 2020 (PDF). We received the complete document and are happy to share with the community. From TC Daily, a good summary below:

Come August 20, Guideline for On-Line Hailing Business Operation of Taxi in Lagos will come into effect. It is the Lagos State government’s approach towards regulating the ride-hailing sector in the commercial city and has been the cause of concern since last year when its existence was first hinted at. Both motorcycle and taxi operators have been at regulatory loggerheads with the state government since 2018. In January, the state government announced the ban of motorcycles, including the tech-enabled operators, from major areas in the state to the outrage of users and the operators. There was a peaceful march afterwards to protest the ruling. As was speculated then, 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. The state government is also asking for a 10% service tax on every ride the operators complete (Source: TC Daily)

e-HAILING TAXI OPERATION

4.1       TAXI/OPERATOR’S DOCUMENTATION

1. Service Entity Permit Provisional Licence Application/Renewal

No entity shall operate as a Support Entity in Lagos State without first having obtained a Support Entity Permit from the Licencing Authority.

1. The Service Entity Permit must apply for Operator’s Provisional Licence prior to operation and a payable fee of ?10,000,000.00 (Ten Million Naira only) for 1000 (One Thousand) units of E-hailing
2. The Service Entity Permit must apply for Operator’s Provisional Licence prior to operation and a payable fee of ?25,000,000.00 (Twenty-Five Million Naira only) for 1001 and above (One Thousand and One above) units of e-Hailing

• The Service Entity Permit Provisional Licence is subject to annual renewal with a renewable fee of ?5,000,000.00 (Five Million Naira only) for every 1000 (One Thousand) unit of E-Hailing

1. The Service Entity Permit Provisional Licence is subject to annual renewal with a renewable fee of ?10,000,000.00 (Ten Million Naira only) for every 1001 and above (One Thousand and One above) unit of E-Hailing
2. All Operators of e-Hailing Taxi Services must pay the State Government 10% Service tax on each transaction paid by the passengers to the operators.
3. The Service Entity Permit must commence the renewal process 3 (Three) months before expiration of the existing

• The Service Entity Permit must have a quarterly meeting with the Ministry of Transportation for Operational updates and
• The Service Entity Permit must operator under a particular franchise as no single operator/operation will be

1. On payment of the permit fee, the Licensing Authority shall issue a Support Entity Permit to the
2. All Operators of e-hailing taxi services must give the Ministry access to their database.
3. All Operators of e-hailing taxi services must abide to rules and regulation guiding Lagos State Public Transportation System.

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

“I studied the innovation flowchart one of the participants developed for DSTV and the digital transformation process designed for a laundry business, then designed for a logistics coy and inventory software coy.

The good news is that it has put me in front of both CEOs and I have two job offers on my table- one as a Business Development Manager and the other as the Operations Manager.” Tekedia Mini-MBA Member

Leaders are looking for innovation makers for their companies. Tekedia Mini-MBA is educating young people on the mechanics of innovation and business growth. One young man just shared via Linkedin that he has two job offers, and he is going for one. Our strategy remains: companies do not necessarily care about your degrees these days, they want to see what you can do. If you go through our process, you would be transformed, and be ready to win. That is our promise.

Walk into that interview room, and drop a playbook for that company. Explain to them how a future of digital and broad innovation can unlock growth. Put into practice our courses and see that Offer letter with your name.

Join the largest management training school in Africa right now. Most others are locked down or on strike, our members are creating the future.

Facebook has unveiled a new playbook that could become the most disruptive in the digital global economy: Facebook Financial. Sure, there is nothing new about Facebook trying to become your payment company. But what is new here is that Facebook has created a new division to take care of all things digital payments. This new division “will run all payments projects, including Facebook Pay,” concatenating across its ecosystems of Facebook, Messenger, WhatsApp and Instagram.

Now, you can send money to friends and family via Facebook Pay and also pay for goods and services via Facebook Pay. Simply, when you are in the Facebook Inc ecosystem, you do not need to leave, for PayPal, Stripe, etc, to pay for things. This paytech completes a key piece Facebook needs for its ecommerce business; the logistics component remains.

Keeping Facebook users inside those apps for payments, rather than having them slip out to use Apple Pay, Google Pay, Venmo, PayPal, Zelle, or other digital currency platforms, will help the company’s advertising bottom line. “As payments grow across Messenger and WhatsApp, and as we’re able to roll that out in more places, I think that that will only grow as a trend,” Facebook CEO Mark Zuckerberg said on the company’s latest earnings call, according to MarketWatch.

The Novi unit and Facebook’s embattled Libra cryptocurrency will fall under the Facebook Financial umbrella. Facebook has had to shift plans for Libra after months of regulatory pressure and financial partners bailing on the effort.

Technically, Facebook Inc can do anything it wants to do because it is now a big planet of more than 4 billion people across its ecosystems. It has the demand in a world of unbounded supply, giving it the edge to create and launch these new products easily. The person who controls demand (the users) is in a greater position than one who creates supply, in the web economy.

As a global leading ICT utility, I expect Facebook Pay to support the integration and interface of largely consumer payment, and as it does that, more digital commerce will move to Facebook. This company has a Multi Play strategy, well ahead of the double play. Yes, if advertisers want to revolt, its “tax” on payment transactions will keep adding the digits for Facebook shareholders.

This is the biggest deal in the evolution of the African tech systems since Bill Gates pioneered, through Windows and Intel/IBM chips, personal computing in ways anyone could participate.  Yes, foreign companies planning to do business in the Kenyan ICT sector must be required to surrender 30% shareholding to Kenyans, corporates or individuals. This new ordinance is captured in the National Information Communications and Technology Policy Guidelines 2020, which was published last week, spelling out new regulatory mandates for players in the ICT sector: “It is the policy that only companies with at least 30 per cent substantive Kenyan ownership, either corporate or individual, will be licensed to provide ICT services.”

The ICT policy further says foreign companies will be given three years to meet the local equity ownership threshold, and may apply to the CS for a one-year extension with appropriate acceptable justifications. “For listed companies, the equity participation rules will conform to then extant rules of the Capital Markets Authority,” explains the policy.

[…]

“This will take the form of rules that allow companies to be licenced for certain services and only pay for the licence when they commence operations or achieve benchmark goals within predefined time frames,” explains the policy.

The State anticipates the policy will create 20 Kenyan multi-national ICT companies, 300 mid-sized firms, 5,000 small and medium enterprises and 20,000 startups.

This is expected to increase the number of startups through easing their barrier to entry. The policy also proposes a government venture capital fund that will invest in start-ups for a portion of the equity on a first-loss basis in case the startup fails.

This may not be palatable but Africa needs to have tough conversations for its future. A few weeks ago, a “Kenyan company” was acquired. As I researched for a piece, I noticed that 100% of it was owned by non-Kenyans. The Board has no single Kenyan; I decided not to run the piece as there was nothing Kenyan in it; it was a foreign company with operations in Kenya, deceiving journalists that it was “African”.

I expect Nigeria to arrive at the same conclusion by 2023. Yes, the wealth being created in the technology space today, in Nigeria, is largely not Nigerian. More than 70% are controlled outside Nigeria. From registering startups in the U.S. to using entirely foreign boards, I expect changes because if we do not act, we will get only marginal benefits as a nation. I will be happy to help the government write the brief, free, if it is serious.

I salute Kenya for this move. it is going at the root: OWN something and keep some home.