Lagos State Government Imposes N20 Per Trip Levy On Uber, Bolt, Others


Ride-hailing operators in Lagos State will pay a levy of N20 known as road improvement fund, on each trip their drivers make in a day as from August 27.

Gboyega Akosile, Chief Press Secretary to governor Babajide Sanwo-Olu, disclosed this in a statement, on Friday.

According to the statement, the decision was arrived at after a meeting between the state government and representatives of the ride-hailing operators on Friday, with Governor Sanwo-Olu in attendance.

Dr Frederic Oladehinde, Commissioner for Transportation, said the state government and the operators had unanimously adopted the new regulations, after all parties jointly reviewed and fine-tuned some of the contentious items in the framework.

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He said they reached an agreement on the controversial service tax, which is to be known as road improvement fund.

According to the statement, the enforcement of the new regulations will now take off from August 27, 2020 instead August 20 initially announced by the government.

The commissioner said the governor offered a duty incentive to the operators, reducing their statutory operational licencing fee and renewal fee by 20 per cent.

The statement said, “This implies that each e-hailing firm will now pay N8m per 1,000 cars fresh licencing and renewal, instead of N10m initially announced.”

Oladehinde said the parties also agreed on procurement of comprehensive insurance by the e-hailing companies to cover their drivers and passengers.

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He said: “We also discussed the issue of service tax, which was initially defined as 10 per cent charge. We have come to resolution that the levy will become a flat fee of N20 per trip. We no longer call it service tax; we now call it Road Improvement Fund, which will be levied per trip.”

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