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Lagos Reduces License Fees, Scraps 10% Tax for e-Hailing Services
By Adedapo Adesanya
Following negative reactions that trailed its planned action, the Lagos state government has adjusted regulatory requirements for ride-hailing services operating in the state.
In newly updated requirements, the government has slightly reduced the proposed licence fee and has introduced a road fund and raise more questions on data sharing and vehicle requirements.
Business Post reported last week that ride-hailing platforms like Uber, Bolt, among others which operate in the commercial city will pay a 10 per cent tax on every ride alongside other license fees and sharing of their operational data.
It was also disclosed that companies with less than 1,000 drivers were expected to pay N10 million licence fee, while those with more than 1,000 drivers were to pay N25 million.
The state then noted that subsequent renewals would cost N10 million for those with more than 1,000 drivers and N5 million for others.
In the newly revised policy, the Lagos State Commissioner of Transportation, Mr Frederick Oladeinde, has disclosed that in place of the 10 per cent service tax for every trip, a Road Improvement Fund has been introduced and a flat fee of N20 will be charged for every transaction.
Mr Oladeinde also added that operational licence fee has been reduced by 20 per cent. This means those with more than 1,000 taxis will now pay N20 million instead of N25 million while those with less will pay N8 million in place of the former N10 million.
It also noted that app operators (those without cars but allow its services) more than 50 cabs on their platforms will pay N8 million while those N50 cabs will pay N4 million.
Initially, the date for the implementation was set for Thursday, August 20 but has been shifted by a week and will now commence on August 27.
The state government also noted that drivers have been given 90 days to comply with all necessary documentation.
According to the commissioner, there will be a one-stop-shop for all the documentation, especially LASSRA Card- Lagos State Resident Registration Agency.
The commissioner reiterated the fact that there must be due diligence on drivers and riders should desist from offline trips and transactions.
Clarifying the data issues, Mr Oladeinde noted that, “The data they will be supplied to us is going to be encrypted. We don’t want detailed data, just on movement, from point-to-point, it’s going to be encrypted so that all the information is taken off.”
According to him, the data will ensure more planning and to enable the government to deploy resources to places faced with congestion.
“We are not asking for data on people’s details, where they came from or where they are going to. We just want point-to-point data,” he added.
Mr Oladeinde insisted that vehicle guidelines, which includes a brand new vehicle of 1.33cc with a taximeter among others, were not meant for e-hailing companies, but for what they call corporate cabs.
By Modupe Gbadeyanka
A bill aimed at prohibiting hawking, trading or preaching inside commercial vehicles in Nigeria has been passed by the Senate.
The bill known as the Federal Road Safety Corps (Amendment) Bill, 2026, imposes fines between N50,000 and N100,000 for violations if assented to by the President.
The piece of legislation was passed by the red chamber of the National Assembly on Thursday and should later be transmitted to President Bola Tinubu for assent.
Members of the upper chamber of the parliament explained that the law was amended to discourage distractions in commercial vehicles and improve the safety of commuters.
In addition, motorists who fail to cooperate with officials of the Federal Road Safety Corps (FRSC) during roadside breath tests conducted on reasonable suspicion are liable to fines or imprisonment or both.
Lawmakers noted that this was to improve compliance with road safety regulations and reduce road crashes, as fines for driving under the influence of alcohol or intoxicating drugs were raised to N100,000 from N5,000, with the risk of spending two years behind bars.
It was also proposed that disobedience to traffic lights, road signs, pavement markings and other traffic control devices will now attract N100,000, while the fine for speed limit violations is now N100,000, with reckless driving now a fine of N100,000 or two years’ imprisonment.
By Dipo Olowookere
Residents and motorists plying the Aina Obembe Road in Baruwa, Ipaja, Lagos, may soon heave a sigh of relief as the excruciating traffic gridlock being experienced in the area both day and night may soon be a thing of the past.
This is because the chairman of Ayobo-Ipaja LCDA, Mr Lukmon Agbaje, has directed those involved in indiscriminate truck parking along the road to remove the heavy-duty vehicles within one week, threatening to invoke appropriate enforcement measures for noncompliance with this directive.
Speaking during a meeting on Wednesday with the management of SENA Company, which owns the affected trucks, as well as the leadership of Oluwadara CDA and other key stakeholders like the Lagos State Traffic Management Authority (LASTMA), at the council’s secretariat, Mr Agbaje frowned at the prolonged inconvenience suffered by the community, stressing that public roads must remain accessible and safe for all users.
He emphasised the need for a collaborative approach in resolving the issue without undermining legitimate business operations, noting that he’s focused on finding a lasting solution to the gridlock experienced between Oluwaga and Aina Obembe, where parked trucks have continued to obstruct traffic, disrupt business activities, and pose safety concerns for residents and motorists.
He tasked the firm and the CDA to jointly identify and implement alternative parking arrangements that would remove all trucks from the affected roads and restore the free flow of traffic.
He declared that, “The welfare of our people remains our highest priority. No individual or corporate organisation should obstruct public infrastructure or create avoidable hardship for residents. We must ensure that economic activities coexist with public safety, order, and convenience.”
The council chief reaffirmed his administration’s commitment to promoting orderly development, ensuring safe and accessible roads, improving traffic management, and creating an environment where businesses can thrive alongside the well-being of residents.
By Adedapo Adesanya
The federal government has cut import levies on new and used vehicles by as much as 10 per cent in a move aimed at reducing the cost of vehicle importation, even as it commenced the implementation of a new Green Tax surcharge.
According to an update issued by the Nigeria Customs Service (NCS) on Wednesday, the import levy on new vehicles has been reduced from 20 per cent to 10 per cent, while the levy on used vehicles has been slashed from 15 per cent to five per cent under the 2026 Fiscal Policy Measures, which took effect on July 1, 2026.
The customs said the policy is designed to ease the cost of vehicle imports while advancing the government’s environmental sustainability objectives through the newly introduced Green Tax.
The implementation also reduces the overall import duty on fully built passenger vehicles from 70 per cent to 40 per cent.
As part of the Green Tax framework, a new environmental surcharge of between two per cent and four per cent will apply to petrol-powered vehicles with engine capacities exceeding 2,000cc. However, mass transit buses, electric vehicles, and passenger cars with engines below 2,000cc are exempt from the surcharge.
Beyond the automobile sector, the fiscal measures also lower import duties on several essential goods. The duty on imported rice has been reduced from 70 per cent to 47.5 per cent, while crude palm oil now attracts a 28.75 per cent duty.
In addition, import duties on agricultural and manufacturing machinery have been completely removed to support local production, while Waste PET has been added to the export prohibition list to encourage domestic recycling.
