The Lagos state government is planning the enforcement of a taxi regulation which seems aimed at stifling Uber in the state.
Uber has enjoyed commendable success in Lagos, replicating their easy to use taxi-hailing service in Nigeria’s megacity.
Lagos state looks set to end Uber’s fine run with the Transport Laws of Lagos passed in 2015. The Transport Laws of Lagos State 2015 states that Lagos Metropolitan Area Transport Authority may:
- Grant franchise for the operation of scheduled bus services and other modes of transportation within the State;
- Shall impose and collect fees for the franchise granted under this Law;
- Shall make regulations as it may consider necessary for the grant and terms of franchise under this sector.
Uber will now be required to pay N100,000 for every car within its system as well as N30,000 for renewal subsequently. By the estimation of the Lagos state government, Uber owes about N600 million in license payments.
The government has insisted the regulation is to ensure ‘safety’ but it’s hard to see how. It appears to be just another response by a regulation-crazed government to a scheme which bypasses the government.