Ride-hailing companies like Uber, BMP and Bolt have reasons to feel excited as the Lagos State Government has decided to reduced the operational license fee placed on operating in the state by 20%.
This was announced on Friday by Governor Sanwo-Olu’s media aide, Jubril Gawat, after a stakeholders’ meeting with the State Governor, Babajide Sanwo-Olu.
Recall that the LASG had set new regulatory framework by which will take effect from August 20, 2020, ride-sharing companies were required to pay the Lagos State Government a 10% service tax on each transaction.
The new guidelines required operators to pay a provisional license fee of N10,000,000.00 for every 1000 cars in their unit and N25,000,000.00 for every unit above 1000 cars. Annual renewal of the license would cost N5,000,000.00 for every unit of 1000 cars and N10,000,000.00 for units with over a thousand cars in operations.
The guidelines also required that the vehicles must be brand new or within the first three (3) years of its manufacture as specified by the manufacturer.
However, after the meeting on Friday with the Governor, all parties agreed to newer resolutions which are:
There must be comprehensive insurance cover which will cover drivers and passengers.
A reduction of 20% on the operational licensing fees.
A flat fee of N20 to be known as Road Improvement Fund which will be levied on each ride/trip.
A 90-day compliance with documentation for the drivers – There will be a one-stop shop for all the documentation (especially LASSRA Card- Lagos State Resident Registration Agency.
E- Hailing companies to work with various bodies in the business for a good relationship.
There MUST be due diligence and background checks on all drivers.
Riders should desist from offline trips and transactions.
E-Hailing Firms must make necessary data available to the Govt.
Mr. Gawat also noted that media reports about operators being required to only use cars that are not more than 3 years are incorrect. Instead, the rule only applies to Corporate Cabs.
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