Uber and Bolt riders to pay an extra 10% fee on every ride as ”service charge”, to Lagos State Government

From August 20, Online car hailing business (Uber, Bolt etc) must pay Lagos state a fee of NGN 10 million for every 1,000 cars. Annual renewal fee is NGN 5 million.

10% of EVERY transaction paid by every passenger will be collected by Lagos state as service tax.

The Companies must give Lagos state access to your Data and their entire database (section 4.2 of Guidelines).

The companies will push the 10% service tax to customers so the price of trips will increase.

These companies must still pay company income tax by the way.

According to TechCabal, Toriola Hafeez, the head of the vehicle inspection office in Lagos, claims:

“The regulation has been approved by the governor. We have called the operators and other intending companies to cooperate with the new guidelines which are in line with global best practices.”

He added: “We created these guidelines with the operators. What we have done is to look at developed countries and how they maintain their infrastructure and we’re applying that here.”

Despite Hafeez claims that e-hailing companies participated in drafting the guidelines, several of our sources painted a different picture.

A source privy to the regulation discussions said that Uber, Bolt and other operators were invited to the ministry of transportation last week Wednesday. But that the meeting was postponed without notice to Thursday, and Uber and Bolt were not present at the new meeting.

The meeting, chaired by the Special Assistant to the Governor on transportation was to discuss licencing, data collection and a service charge: the same issues which had come up in previous meetings with stakeholders.

In the end, those present at the meeting said that the SA read out from the draft document of the new regulations. Despite protests about many aspects of the guidelines, the ministry of transportation says it will begin implementation on August 20.  Source- TechCabal

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