LASG makes u-turn, reverses 10% charge per trips on Uber, others

IKEJA, Nigeria – Lagos State government on Friday rescinded its decision to impose a 10 per cent service charge which it had earlier planned to impose on every trip made through e-hailing platforms such as Uber and Bolt.

The commencement date for the implementation of the levies to be imposed on the operators was equally moved by a week to August 27, 2020.

Commissioner for Transport, Dr Frederic Oladeinde, stated that the state government had 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.

The Commissioner said this understanding was arrived at, after the Governor, Mr Babajide Sanwo-Olu, along with some Executive Council members held a meeting with e-hailing operators.

Oladeinde revealed that other agreements reached include 20 per cent reduction in the operating and renewal licence fees, aside drivers completing their documentation within the next 90 days.

He added that the documents the drivers should acquire include the Lagos State Registration Agency card,  drivers licence, among other documents, saying drivers who failed to comply, would be banned from operating, among other penalties.

Furthermore, he said that a one-stop shop had been created to ensure that the drivers accessed all the required documents easily.

Oladeinde revealed that it was also agreed that the operators should take comprehensive insurance for each vehicle, while the driver takes a third party insurance. He added that the operators had been told to do a background check on each driver, a move which the state government hopes would promote safety.

The Commissioner said the operators were also mandated to provide data about each trip made on their platforms every week, stating that the data would help government to plan better on areas it should deploy resources.

Also speaking, Commissioner for Information and Strategy, Mr Gbenga Omotosho, said there was no strain in the relationship between the state government and the operators. He said steps taken by the state government were aimed at providing a good environment for businesses to thrive, aside promoting safety and security of residents and commuters. He said the regulation was not about imposing taxes but safety.

The President of Professional E-hailing Drivers and Private Owners Association, Idris Shonuga, implored e-hailing drivers to comply with the state government directives. He applauded the state government for helping to resolve all the grey areas.