Lagos Begins Tax , Regulation For Ride-Sharing Firms Aug 27

Ride-sharing companies like Uber Technologies Inc. and Bolt that operate in Nigeria’s commercial capital of Lagos will have to pay licensing, renewal and service fees under regulations set to take effect later this month.

Effective Aug. 27, such companies with more than a thousand drivers on their platforms will pay an annual operating and renewal fee of 8 million naira ($20,698), instead of 10 million that was initially proposed, according to a statement from the Lagos state government. The rules also require operators to pay a service fee of 20 naira per trip, to help fund road improvement.

State officials announced the changes after a meeting with company representatives on Friday.

“We also agreed that there must be a background check on drivers,” transportation commissioner Frederic Oladehinde said in the statement. “All forms of checks must be carried out to ensure the right people driving on the platform.”

The regulations, which also seek access to data on trip movement, take effect a week after the proposed start date to give operators extra time to comply. Companies will have comprehensive insurance for each driver while the driver is working with them, which will also cover passengers.

Under the rules, e-hailing companies will carry a Lagos State Drivers’ Institute card and a driver badge issued by the Department of Public Transport and Commuter Services, among other documentation, according to a separate document seen by Bloomberg. [Bloomberg]