Mixed feelings trail taxes for Uber, others in Lagos

Ride hailing companies operating in Lagos face an uncertain future as the government moves to regulate the service with effect from August 27.

The regulation was to take effect from August 20 before it was shifted to August 29 after a meeting between officials of the state government and the stakeholders.

Under the regulations, operators would be paying N20 as Road Improvement Fund which would be levied on each trip their drivers make in a day.

Also each e-hailing firm will pay N8 million per 1,000 cars’ fresh licencing and renewal fee instead of the N10m initially announced.

Some e-hailing drivers have expressed mixed feelings over this saying the move may cause uncertainties in their operation. Others believe it could be a ploy to provide an avenue for indigenous operators to take over.

An Uber driver, Tope was worried over this. “Some of these regulations would only kill the business. We heard that the government wants to bring in other operators on the platform.”

The Transportation Commissioner, Fred Oladehinde, during a stakeholders’ meeting had dismissed this, citing security reasons.

He said the e-hailing platforms have 90 more days to regularize their licenses and cards.

Although Oladehinde is yet to respond to our enquiries about the fresh worries by drivers, in an email response to Daily Trust’s enquiry, the management of Uber in Nigeria, said, “We are positively engaging with the Lagos State Government and relevant stakeholders on the proposed regulations. Their swift response to ensure the guidelines aligns with 21st-century businesses and their willingness to engage with Uber and other parties is to be commended.”