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Ride-hailing Companies in Lagos Face a New Set of Regulatory Road Bumps

Back in 2016, the Lagos state government first attempted to regulate ride-hailing startups by requiring taxi companies register each operator with the state at the cost of $320 per car. But, under a new administration, the government has changed tack. The state is set to introduce a new range of regulatory guidelines for ride-hailing including annually renewable licensing fees and a service tax on each transaction paid by passengers. Major players like Bolt and Uber where Lagos is home to majority of their active drivers in the country, will be key targets of the proposed rules. The regulations are expected to come into full force on August 20.