Ride-sharing companies 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.
According to a statement from the Lagos state government, companies such as Uber Technologies Inc. and Bolt 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.
The rules also require operators to pay a service fee of 20 naira per trip, to help fund road improvement. This is effective August 27.
These changes were announced by officials of the Lagos State after a meeting with company representatives on Friday.
Lagos State Commissioner for Transportation, Frederic Oladehinde, said in the statement:
We also agreed that there must be a background check on drivers.
All forms of checks must be carried out to ensure the right people driving on the platform.
According to the Lagos State Government regulations, which also seek access to data on trip movement, take effect a week after the proposed start date. The move, the government said, is aimed at giving operators extra time to comply.
In addition, the government said that companies will have comprehensive insurance for each driver while the driver is working with them, and this which will also cover passengers.
Meanwhile, e-hailing companies, under the rules, 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.