Office Address: 5, Ishola Bello Close, Iyalla Off Street, Alausa, Ikeja, Lagos, Nigeria
Background Study
E-hailing platforms, also referred to as ride-hailing platforms or transportation network companies, digitally connect the driver of a car or other vehicle with a passenger who requires transportation services, through mobile- or web-based applications.
Taxi and e-hailing services play an increasingly important role in the transportation of individuals in Nigeria’s urban centers. The industry comprises traditional taxi services where fleets are owned by a single operator, as well as e-hailing platforms that match independent drivers to riders.
Drivers pay a commission as a proportion of the trip fee to the e-hailing provider. Fares are dynamic and are adjusted by an algorithm, based on demand and supply for trips. Simply put, if demand outstrips supply at a given time in a given location, riders will be charged more – and drivers will earn more.
E-hailing platforms also offer payment mechanisms for transactions to be settled between drivers and riders on trip completion (including payment options such as card, digital wallet, mobile money and cash).
Nigeria’s e-hailing market is dominated by three (3) major digital platforms, which service the bulk of users in the country. These are Uber, Indriver and Bolt with bolt having sixty-six percent (66%) of the market share.
The global ride hailing market is valued at USD 113 billion in 2020 and is anticipated to reach a value of USD 230 billion by 2026, registering a compound annual growth rate (CAGR) of eight-point seventy-five percent (8.75%), during the forecast period, 2021-2026.
In Nigeria, taxi and e-hailing services playing an important role in the movement of people. Many individuals in Nigeria rely on public or alternative forms of transport. The country’s vehicle-to-population ratio equates to sixty (60) vehicles per one thousand (1,000) people, which is relatively low compared to countries such as Brazil and China, which achieved scores of two hundred and forty-nine (249) and one hundred and fifty-four (154) respectively.
Moreover, only forty-one percent (41%) of the eleven million, eight hundred thousand (11,800,000) vehicles in circulation in the country are privately owned and vehicle ownership is largely concentrated in urban areas and main cities such as Lagos, which is ranked highest in terms of the number of licensed drivers (National Bureau of Statistics, 2018).
Taxi and e-hailing services play an increasingly important role in the transportation of individuals in Nigeria’s urban centers. The industry comprises traditional taxi services where fleets are owned by a single operator, as well as e-hailing platforms that match independent drivers to riders.
Transportation is an integral part of economic development in Nigeria and Africa. The transport sector has a significant impact on the movement of people and goods, which affects other sectors of the economy. The transportation sector in Nigeria contributes to the growth of the economy, with a Gross Domestic Product (GDP) contribution of 1.45% as of 2020. In Africa, the transportation sector contributes an average of 5.1% to the GDP, making it a critical sector for economic growth and development.
In 2020, revenues generated in Africa’s e-hailing industry are estimated to reach USD2.5 billion, with Nigeria accounting for around USD292 million of this revenue and fifteen percent (15%) of the continent’s forty-eight million, six hundred thousand (48,600,000) e-hailing users.
The market for transport services is national. With a population of over two hundred million (200,000,000) people and an estimated national population growth rate of five-point seven percent (5.7%) per annum, Nigeria is a large, expanding and sustainable market for transport business.
Categories Of Mediums of Transportation in Nigeria.
Transportation is an essential part of human activity, and in many ways form the basis of all socio-economic interactions. Indeed, no two locations will interact effectively without a viable means of movement.
In many developing countries, inadequate transport facilities are often the norm rather than the exception. Thus, a good transport system is essential to support economic growth and development.
Transport statistics are grouped into four (4) basic categories, namely, Rail, Road, Water and Air Transport. They are explained below as follows;
Water Transport
Water transport scores a distant second to road transport, with an average share of about 1.6 per cent of Nigeria’s gross domestic product. Water transport is slow and therefore, unsuitable for passenger movement, except for holiday and tourist traffic where time is not a constraint or where other forms of transport are not available.
Water transport has the following three components: ocean transport, coastal water transport and inland water transport.
Air Transport
Air transport has a unique advantage over all other modes of transport if speed, time and distance are major considerations. Air transport is of high value in relation to weight. It is also preferred where accessibility by other modes is a problem (especially in riverine or mountainous regions).
Of all the modes of transportation, the most used by Nigerians is road transport which is a fact in most countries. Road transportation in any society is meant to be the most easily accessible. People need road transportation for their day-to-day activities, to commute to their places of work or study, to transport their products, for inter-city and intra-city travel, etc.
Rail Transport
Rail transport is usually the most suitable mode of transportation for heavy traffic flows when speed is also an advantage because of the lower cost per person per load as the train load increases.
Nigeria’s single-narrow-gauge railway line constructed in the colonial period was for many years the only mode of freight movement between the northern and southern parts of the country.
Because Nigeria’s railways are in a perilous condition, the government is trying to rectify the situation by privatizing the Nigerian Railway Corporation.
Road Transport
Road transport is the most commonly used mode of transportation in Nigeria today. Road traffic depends on the pattern of human settlements, accounting for more than 90 per cent of the sub-sector’s contribution to the gross domestic Product (GDP).
Road transport activities involve the conveyance of passengers en-masse or in small numbers, the transportation of animals, farm produce and merchandise and the rendering of mobile services (clinics, libraries and banks).
Facts About the Transport Business in Nigeria
The transport sector in Africa employs millions of people, both directly and indirectly.
Africa has a huge untapped potential for transport infrastructure development, providing opportunities for investment and growth.
The use of technology is rapidly changing the transport industry in Africa, with innovations such as ride-hailing apps and e-commerce platforms driving growth.
The development of rail transport infrastructure is a major priority for many African countries, with new projects underway to link major cities and ports.
The transport industry in Africa is highly regulated, with government policies and regulations affecting the sector.
Transport safety is a major concern in Africa, with poor road conditions and inadequate safety measures leading to a high rate of accidents.
The COVID-19 pandemic has had a significant impact on the transport industry in Africa, with restrictions on travel and movement affecting the sector.
The transport industry in Africa is highly fragmented, with a lack of coordination and integration between different modes of transport.
The transport industry in Africa is facing increasing pressure to adopt more sustainable practices, with a focus on reducing emissions and improving energy efficiency.
In Nigeria, the transport industry is dominated by small-scale operators, with few large-scale players.
The Nigerian government is implementing policies to improve the transport infrastructure in the country, with a focus on road and rail networks.
The transport industry in Nigeria is highly informal, with a large proportion of operators operating outside the formal sector.
The use of digital technology is rapidly changing the transport industry in Nigeria, with the growth of ride-hailing and delivery services.
The transport sector in Nigeria is a major employer, with millions of people employed in the industry.
Nigeria has a large population and growing middle class, providing opportunities for the transport industry to cater to increasing demand.
The high level of urbanization in Nigeria is driving demand for transport services, particularly in major cities.
The transport business is a major contributor to Nigeria’s economy, accounting for over 1% of the country’s GDP.
Nigeria’s transport industry is the largest in West Africa, with a market size of over $10 billion.
The road transport sub-sector dominates the transport industry in Nigeria, accounting for over 90% of passenger and freight movement.
The transport industry in Nigeria is highly competitive, with a large number of operators ranging from small-scale operators to large conglomerates.
Africa has the fastest-growing transport market in the world, with an annual growth rate of over 5%.
Nigeria has a strategic location in West Africa and serves as a gateway to the region, making it a key transportation hub for trade and commerce.
The growth of e-commerce is driving demand for last-mile delivery services in Nigeria.
The transport industry in Nigeria is facing challenges such as poor road conditions, inadequate infrastructure, and high operating costs.
Nigeria has the potential to become a major player in the transport industry in Africa, with its strategic location and large market size
Benefits of the Transport Business in Nigeria
Technology advancement
Environmental sustainability
Infrastructure development
Social integration
Improved safety
Emergency services
Disaster relief
Employment opportunities
Economic growth
Improved connectivity
Increased trade
Access to education and healthcare
Improved quality of life
Reduction of poverty
Tourism development
Major Key Players in The Transportation Industry in Nigeria(Inter-State)
Peace Mass Transit
ABC Motors
God is Good Motors
Benue Links Nig. Ltd.
Bonny Way Motors Nig. Ltd.
Cross Country
Libra Motors
Young Shall Grow Motors Ltd
Chisco Transport Limited
GUO Transport
What Transport Business in Nigeria Is All About
The transport sector plays a significant role in the economic development of Nigeria and Africa, as it provides essential services for the movement of people and goods within and outside the country. The demand for transport services in Nigeria and Africa is high due to the large population and the need to move goods across various regions for business purposes.
Transport business refers to the commercial activity of moving goods, people, or animals from one location to another. It involves the use of various modes of transportation, including road, rail, water, and air. The scientific name for transport is “transportation”.
Transport business requires research on routes, pricing, and the type of goods being transported. Successful transport businesses require effective management skills, such as scheduling, tracking, and maintenance. Production yield in the transport business is measured in the amount of goods and people that are successfully transported from one location to another within a specific time frame.
Transport business has an export opportunity from Nigeria to other African countries due to its strategic location and the demand for goods from Nigeria. With proper planning and implementation, transport businesses can leverage this opportunity and expand their operations to other African countries.
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Email: info@mocaccountants.com
Office Address: 5, Ishola Bello Close, Iyalla Off Street, Alausa, Ikeja, Lagos, Nigeria
Career Opportunities in the Transport Business in Nigeria
Trucking and logistics services
Specialized transportation services
School transportation services
Ambulance services
Private jet charter services
Airport shuttle services
Car wash and detailing services
Gas station and fuel retail services
Auto repair and maintenance services
Online transportation marketplaces
Passenger transport services
Cargo transport services
Courier and delivery services
Vehicle rental services
Taxi and ride-hailing services
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Tel: (+234) 802 320 0801, (+234) 807 576 5799
Email: info@mocaccountants.com
Office Address: 5, Ishola Bello Close, Iyalla Off Street, Alausa, Ikeja, Lagos, Nigeria
Types Of Transport Businesses in Nigeria
Public Transport
Private Transport
Road Transport
Air Transport
Sea Transport
Courier and Delivery Services
Haulage Services
Shipping Services
Air Cargo Services
Car Rental Services
Logistics and Supply Chain Management
Ride-Sharing Services
Ambulance Services
School Bus Services
Tour and Travel Services
Types Of Transport Vehicles in Nigeria
Cars
Buses
Mini-buses
Motorcycles
Tricycles
Trucks
Trailers
Tankers
Refrigerated trucks
Pick-up trucks
Flatbed trucks
Dump trucks
Cement trucks
Ambulances
Watercraft
Boats
Ferries
Airplanes
Helicopters
Bicycles
Scooters
Water Taxis
Canoes
Yachts
Speed boats
Top Key Players in Taxi Apps Revolutionizing Urban Travel In Nigeria
Uber
in driver
inDriver
Bolt (formerly Taxify)
Pickmeup
Holla
EasyTaxi
CarXie
Jekalo
RideMe
HOPIN
Laws, Compliance and Regulations for Ride-Hailing Operations in Nigeria/ Lagos
Company Registration: Register with the Corporate Affairs Commission (CAC).
Minimum issued share capital
₦1,000,000 for a local company.
₦100,000,000 if a foreigner is a shareholder or director.
Licensing
Obtain licenses according to the Guidelines for Online Hailing Business Operation of Taxi in Lagos State of 2020.
Service Entity Permit: For app owners or platform providers.
Operator’s Provisional License: For those who own and operate both the vehicles and the app.
Driver and Vehicle Documentation:
Drivers:
Must have a valid driver’s license.
Must have a Lagos State Residents Registration Agency (LASRRA) card.
Must possess a Lagos State Drivers’ Institute (LASDRI) certificate and card.
Vehicles:
Must have a title or manufacturer’s certificate of origin.
Must have a bill of vehicle sale or vehicle lease agreement.
Must have a taxicab license (hard card), special plate number, proof of ownership, pre-registration inspection certificate, roadworthiness certificate, comprehensive insurance policy, vehicle license, hackney permit, approved route document (body tag), and driver’s badge.
Data Sharing and Compliance:
Share data with the Lagos State Government.
Comply with API integration for security and safety monitoring.
Procedure
Obtain Service Entity Permit:
Apply for the permit before starting operations.
Pay the relevant fee.
Attend quarterly meetings with the Ministry of Transportation for updates.
Allow Ministry access to the company’s database.
Operate under a franchise, as no single operator will be licensed.
Obtain Operator’s Provisional License:
Apply before starting operations.
Pay the relevant fee.
Follow the same renewal process as the Service Entity Permit.
Applicable Fees
For Service Entities
Initial Licensing:
. Up to 1000 units: ₦10,000,000.
. More than 1000 units: ₦25,000,000.
Annual Renewal:
Up to 1000 units: ₦5,000,000.
More than 1000 units: ₦10,000,000.
Transaction Fee: 10% of each ride.
For Taxi and App Operators
Initial Licensing:
Up to 50 units: ₦5,000,000.
More than 50 units: ₦10,000,000.
Annual Renewal:
Up to 50 units: ₦1,500,000.
More than 50 units: ₦3,000,000.
Transaction Fee: 10% of each ride.
Timeline
License Renewal:
Start the renewal process three months before the expiration of the existing license.
Compliance Checks
Enforced by the Vehicle Inspection Service (VIC), Nigeria Police, Lagos State Traffic Management Authority (LASTMA), and Federal Road Safety Corps (FRSC).
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Tel: (+234) 802 320 0801, (+234) 807 576 5799
Email: info@mocaccountants.com
Office Address: 5, Ishola Bello Close, Iyalla Off Street, Alausa, Ikeja, Lagos, Nigeria
Penalties For Non-Compliance
Initial Query: Non-compliance results in a query.
Suspension: Continued non-compliance leads to a 14-day suspension and a ₦100,000 fine.
Revocation: Persistent non-compliance can result in license revocation.
Driver Penalties: Fines for individual driver non-compliance range from ₦20,000 for first offenders to ₦30,000- or three-months imprisonment for subsequent offenders.
Other Requirements
Driver Literacy: All drivers must be literate.
Driver Documentation: Must have a valid driver’s license, LASRRA card, and LASDRI certificate.
Different Ways to Market Your Transport Business in Nigeria
Social Media Marketing
Advertising in Local Newspapers
Billboard Advertising
SEO Optimization
Google AdWords
Radio Advertising
Business Cards
Referral Marketing
Partnerships with Hotels
Offering Promotions and Discounts
Sponsorship of Local Events
Vehicle Branding
Google My Business
Online Directories
Vehicle Signage
Referral Programs
Vehicle Maintenance
Collaborations with Other Businesses
Call-for-action
Tel: (+234) 802 320 0801, (+234) 807 576 5799
Email: info@mocaccountants.com
Office Address: 5, Ishola Bello Close, Iyalla Off Street, Alausa, Ikeja, Lagos, Nigeria
Step-By-Step Guide on How to Start the Transport Business n Nigeria.
Prepare A Business Plan:
Preparing a good business plan is the first step. It means that you have conducted market research and weighed your options. A business plan tells your investors and prospective funders whether or not they can trust you with their money.
Capital:
The starting capital might be sufficient for an independent, medium, or a large transport business. Your initial scale of business depends on the finances you are able to gather and the experience you have.
Commercial bank loans, investors, and partnerships are options to consider while sourcing for capital.
Register Your business:
Pick out a unique business name, get all your documents ready, and register your transport business. Get every license you need from the Corporate Affairs Commission in Nigeria and other licensing bodies.
Join A Union:
It’s necessary to become a member of a transport union in Nigeria, like most other businesses. For medium to large-scale transport businesses, this is just a beneficial option.
Purchase And Equip Vehicles:
The type of vehicle purchased should suit the type of service you offer. For instance, a truck can serve as a moving van or livestock transport vehicle but never a taxi or shuttle.
Employ Qualified Personnel:
In transporting people or goods, safety is paramount. When a transport business hires reckless drivers and has a poor customer relation service, progress is hindered.
Insure, Expand and Promote:
Insuring your transport business against possible risks is a significant step towards the prosperous outcome of your efforts.
Lagos State Guidelines For E-Hailing Business Operations.
The guidelines are categorized into 2 which are:
Taxi and App Operators
Service Entity
Service Entity
The service entities are mobile App owners or ride-hailing platform owners, such as Uber or Bolt, who do not own or operate the commercial vehicles but provide support services. In other words, service entities provide and manage the e-platform and facilitate connections between taxi owners and commuters through their mobile App or platform.
The licensing costs for the service entity category include:
Categories/Particulars Costs
First Operator’s Provisional License for up to 1000 units of ride-hailing taxi or below (10 million)
First Operator’s Provisional License for 1001 and above units of e-Hailing Taxi (25 million)
Annual Renewal of Provisional License of 1000 unit of E-Hailing Taxi or below (5 million)
Annual Renewal Fee for Operator’s Provisional License for 1001 and above units of e-Hailing Taxi (10 million)
Transaction Fee payable to Lagos State Government on each ride (10%)
Please note that:
The Service Entity Permit must commence the renewal process 3 (Three) months before expiration of the existing license.
The Service Entity Permit must have a quarterly meeting with the Ministry of Transportation for Operational updates and feedback.
The Service Entity Permit must operate under a particular franchise as no single operator/operation will be licensed.
On payment of the permit fee, the Licensing Authority shall issue a Support Entity Permit to the applicant.
All Operators of e-hailing taxi services must give the Ministry access to their database.
All Operators of e-hailing taxi services must abide to the rules and regulations guiding the Lagos State Public Transportation System.
Taxi and App Operators
This category includes individuals or organizations that own and operate both the vehicles and the app. This category may also involve third-party fleet (i.e. vehicles from third party owners) in its operations.
The Licensing Requirements for The Taxi and App Operators’ Category
Categories/Particulars Costs
1 First Operator’s Provisional License for up to 50 units of cabs or below (5 million)
2 First Operator’s Provisional License for 51 and above units of cabs (10 million)
3 Annual Renewal of Provisional License of 50 unit of cabs or below (1.5 million)
4 Annual Renewal Fee for Operator’s Provisional License for 51 and above units of cabs (3 million)
5 Transaction Fee payable to Lagos State Government on each ride 10%
Please note that:
The operator must commence the renewal process three (3) months before the expiration of the existing license.
Operators must have a quarterly meeting with the Ministry of Transportation for Operational updates and feedback.
Taxi Operators must operate under a particular franchise as no single operator/operation will be licensed.
Are there additional requirements for Ride-hailing Companies in Lagos State?
Yes, ride-hailing companies must ensure that all affiliated drivers complete and possess the necessary documents and licenses, such as a valid driver’s license and Lagos State Residents Registration Agency (LASRRA) cards, which are essential for the ride operation.
According to the guidelines, ride-hailing companies must verify that their drivers have acquired the following documents before registration:
Title of vehicle or manufacturer’s certificate of origin;
A Bill of Vehicle Sale or Vehicle Lease;
Taxicab license (hard card) card;
Special Plate number;
Allocation of plate number form;
Proof of ownership;
Pre-registration Inspection Certificate;
Roadworthiness Certificate;
Insurance policy (Comprehensive);
Vehicle license;
Hackney Permit;
Approved Route Document (Body Tag);
Drivers’ Barge
The Major target Market/ Target Audience for The Transport Business in Nigeria
Event planners
Schools
Medical facilities
Commuters
Tourists
Businesses
Government
Farmers
Driver’s KYC Documentation
Literacy Requirement: All drivers registered with any operator must be literate.
A valid and authentic driver’s license.
An original annual certificate of competence from the Lagos State Drivers’ Institute (LASDRI) to assess their skill and proficiency, along with the LASDRI Card.
A Lagos State Residents Registration Agency (LASRRA) Card.
Lagos State’s current policy on acquiring data of ride-hailing operators
According to the amended regulation for on-line hailing business and taxi cab operation in Lagos state 2023, the following are the current policies for on-line hailing business and taxi cab operations:
“Lagos State is by all indices and standards is the economic hub of Nigeria and indeed West Africa. The status of Lagos as an economic nerve center is further enhanced by its proximity to the Atlantic Ocean which makes it a natural host to the busiest sea and air ports in Nigeria. This made the State a very attractive zone for both foreign and local investments as well as for entrepreneurship growth. Equally, a well over 60% of Value Added Tax (VAT) is realized from Lagos and this scenario has created a lot of avenues for different businesses and people from various parts of the country, other African countries and the world to migrate to Lagos State for a source of livelihood and as an avenue to expand their business frontier.
The surge in human movement from various parts of the world to Lagos State and the various activities embarked upon by different organizations and individual made Lagos polymorphous society just like any other developing economy.
Thus, there is need for the authorities to have a clear-cut policy on transportation sector as transportation is one of the essential ingredients to aid commerce, business development and movement of people to various destinations.
In view of the above statement, there is an urgent need to upgrade the existing guidelines for the operation of Taxi Business in Lagos State based on the reality of insecurity and safety confronting the sector as people of questionable characters have hijacked the process which has resulted into increased road crashes, kidnapping, robbery, pollution and insecurity, thereby eroding the confidence of the general public in Taxi business.
Consequently, there is need to curtail and curb the ugly incidence in order to restore safety, standard, sanity and security of lives and properties as well as prompt public confidence into the scheme. The Lagos State Government has put in place various measures to upgrade the existing guidelines for the operation of Taxi Business to ward off the security challenges in the sector.
Part 1
PROBLEM IDENTIFICATION
The problems confronting the operation of Taxi Business are enormous, ranging from violation of operational regulation introduced by the Ministry, increased road crashes and accidents, lack of proper training and education of the drivers on road traffic rules and regulations, lack of proper maintenance of the Vehicle by the operators, disregards to the required capacity, disregard to the route restrictions in line with the Transport Sector Reform law, (2018), and lack of comprehensive data base of operators.
The challenges confronting the operation of Taxi Business could be attributed to lack of proper monitoring of the activities of the operators and drivers.
The flagrant disobedience to road traffic rules and regulations by the drivers is unacceptable and all necessary steps must be taken to bring safety, sanity, standard and security back to the operation of the Business. Thus, there is need to introduce accreditation scheme/registration that will have all the necessary and significant data of operators, drivers and the number of registered Taxi details of which will include the route and tag numbers. This exercise will go a long way to curb the excesses of the operators and drivers in the State.
PART 2
GOALS, OBJECTIVES AND TARGETS
A. GOALS
Enhance the safety, standard, sanity and security of lives and properties on Lagos
Reduce or eliminate illegal Taxi Business operation in the State.
Promote a public transport (formal and informal taxi operations) culture in accordance with the road traffic rules and regulations.
Reduce or eliminate avoidable carnage and curb kidnapping through unidentified
Promote sustainable development of traffic management and transportation to aid planning
Develop a robust data base of the Operators, Drivers and App developers/deployers
B. OBJECTIVES
To ensure free flow of traffic on Lagos roads and to prevent loss of
To obtain accurate and distinct data base of all taxi operators and drivers in the
To sanitize Taxi Business and App
C. TARGETS
To enhance compliance with road traffic rules and regulations in line with the Transport Sector Reform Law, (TSRL),
To ensure conformity with the global standard in operation of the Taxi
To promote the safety of lives and properties on Lagos
To ensure training and professionalization of Taxi
PART 3
TAXI STANDARDS
RELEVANT LAWS
Section 16: Prohibition of use of Unregistered or Unmarked vehicle
Section 19: Owner to be responsible for condition of
Section 50: Careless and Inconsiderate
Section 51: Reckless or Dangerous
Section 192 (1, 2&3): Registration and licensing of
Part XI (General Provision):
“Commercial Vehicle” means a hackney, a stage carriage, a tractor, and any motor vehicle primarily designed for the carriage of goods or passengers, excluding any such vehicle used exclusively for carrying the personal effects of the owner. “Prescribed Particulars” means in relation to any vehicle, the driver’s licence of the driver, the rider’s card, the vehicle registration, the vehicle licence, road worthiness certificate, certificate of insurance of the vehicle, hackney licence, and stage carriage licence or any other document required by law to be obtained in relation to the vehicle”
“Vehicle” means carriages, wagons, carts, motorcycles, tricycles, vans, lorries, trailers, handcarts, sledge, trucks barrows, and all other machines for the carriage of goods or persons”
Section 319: “Power to Retain Driver’s Licence in certain circumstances”
Section 323: “General Penalty”
Schedule 1, Section 1 (C): “Professional Driver” includes paid
Schedule 1, Section 326 (10): Examination of private
Schedule 1, Section 326 (20): Fares, Time-Table, etc.
Schedule 1, Section 326 (32): Drivers shall not stop vehicle longer than
Schedule 1, Section 326 (33): Drivers shall not refuse to be hired without reasonable
Schedule 1, Section 326 (35): Limitation of Number of
Schedule 1, Section 326 (38): Offences in vehicle.
Schedule1, Section 326 (41): Prohibition of Unauthorized Marks, Painting,
Schedule 1, Section 326 (42): Registration and Certification,
Schedule 1, Section 326 (43): Maximum period of Driving Commercial Vehicle (not more than 51/2 hours of continuous driving and 101/2 hours in any period of 24hours).
Schedule 1, Section 326 (45): Power to Inspect.
Section 326 (2): Licence to operate Taxi cab in the
Section 326 (3): Application for a
Section 326 (4): Grant of a
Section 326 (5): Taxi cab
Section 326 (5): Taxi cab Licence
Lagos State Taxi System Model
The Taxi cab Licence system is a value added franchise scheme that enables the Franchisees (Taxi cab Licence Owners) to render taxi services by creating and /or having assistance in Organizing, training, advertising, merchandising and/or clientele in exchange for a defrayment of cost, royalties
The Taxi cab licence shall be the authority to operate taxi business and the licence shall be affixed on
The operation of Taxi business is divided into the followingcategories:
a. Service Entity:
This is an App developer (i.e. Uber, Bolt etc.) who does not operate or own any vehicle but manage and connect taxi owners and the commuters by using its App as an operational platform.
b. Taxi and App Operators:
This is an individual/organization who own and operate both the vehicle & the App. Such individual/organization is the owner of the fleet as well as the owner of the App and might also have other third-party (vehicle from different owner) fleet in its operation.
The proposed Taxi System model will afford the single Franchisee that has enlisted under the Lagos State Taxi Drivers and Cab Operators Association (yellow Taxi cab) and the corporate franchisee to add values and offerings that will support the business development targets of Taxi Scheme.
The Taxi cab Licence system will also create other opportunities for franchisees to have access to bulk, discounted service offerings and partnership to generate income and collect such effectively, thereby creating a formal and robust taxi industry – a Lagos Taxi Exchange.
The taxicab licence shall be a tradable commodity and shall not expire but renewed annually. Taxicab licenses shall correspond in quantity to the number of taxicabs in circulation as well as respond to the forces of demand and supply in such manner to guarantee sustainability. Within the franchise arrangement there shall be only two e- Hailing classes:
Licensing
The Taxicab Licence shall be the Authority to operate a Taxi Services (for either of the two categories) In Lagos State.
It shall be affixed on a vehicle specification and/or operational lifespan and is owned and/or in the fleet of a taxi franchisee as provided for in the policy.
The Ministry shall issue taxicab/App operating licence and other licenses so prescribed from time to time by this policy at a prescribed fee for the operation and provision of taxicab services.
The licence shall be issued to an individual, firm, partnership, corporation, cooperative and association with a franchise to operate under the Lagos State Taxi
All issued taxicab licences shall be registered with the ministry and any search in respect of a taxicab
Every taxicab shall have a taxicab license instrument which shall be fixed to the space provided for such in the
Every taxicab shall have a taxicab vehicle number plate system which shall be related to the taxicab license and shall be affixed to the space provided for number plates on the taxicabs(vehicle).
A vehicle that is not affixed with a taxicab licence shall not render taxi services, and such vehicle shall not be flagged down on the street for passenger pickup, solicit for passengers/customers, be at a taxi park, or be at a location in order to scout for or solicit for passenger.
The minimum price of a taxicab licence shall be determined by the Ministry from time to time based on market demand and supply forces.
The taxicab licence shall be a tradable commodity and shall not expire but renewed annually.
Taxicab licences shall correspond in quantity to the number of taxicabs in
Licensing Authority
A franchisee may only remove the taxicab licence instrument from the vehicle for the purpose of taxicab licence instrument to the designated Ministry office.
As from the commencement of this policy, no person shall operate or permit another to operate or not having been licensed operates for hire taxicab in Lagos State unless authorized to do so under this policy and in accordance with the TSRL,
Application for Taxicab Operator Licence
Pursuant To Policy 1 and 2 Above;
An application for the grant of a taxi franchise under the provisions of this regulationshallbemadeintheprescribedformandmannerandshallbefiled with the
The date and time of the receipt of each application shall be noted and recorded by the Ministry.
The Lagos State Taxi Exchange
The taxicab licence shall be a tradable commodity. The Ministry shall oversee/facilitate the operation of an orderly, transparent and efficient market for the sale and transfer of taxi licence through a taxi exchange system for the assignment of the rights to operate the taxicab licences.
Additional Licenses
The Ministry shall issue additional taxicab license only as follows:
The Ministry may, upon its own motion or directive of the State Government conduct public hearings to determine whether the public convenience, welfare and necessity require the operation of additional taxicabs. Notice of such public hearing shall be published in at least two Daily National Newspapers.
IftheMinistrydeterminesthatadditionaltaxicabsarenecessaryitshallcertifythe number of new licenses to be granted.
The granting of new licenses shall rest on the principle of demand and supply forces.
Not more than one such public hearing shall be held during any calendar
Additional taxicab licenses shall not be more than one (1%) percent increase from the current level except there is a Lagos State Government Executive Council approval for the additional taxicab licenses to be more than the specified percentage
The Ministry through the Commissioner shall seek the approval of the Governor for the addition of more taxicab licenses.
The Propose Policy for the State Taxi System
In making its determination, the Ministry shall consider among other things the traffic and transportation demand for the services, the effect upon traffic, the public demand and socio-economic implications among others.
The number of additional taxicab licence determined shall be allocated by auction or as may be determined by the Ministry.
If any allottee does not accept his allotted license within thirty (30) days, its allocation shall be allocated to new applicant in the same manner or held in trust by the
At the commencement of this policy, all single allottees shall enlist under the Lagos State Taxi Drivers, Cab Operators Association (Yellow Taxicab Franchise), Licensed Taxi Operator or an App Developer. Such single allottees must conform to the operational requirements of the corporate franchisee.
Subsequently, all single allottees shall be enlisted under the Lagos State Taxicab Cooperatives or any other existing corporate franchisee.
Taxicabs License Renewal
Franchisees must file an application to renew a taxicab license starting thirty
(30) days before the expiration of the taxicab license. The application must be accompanied by such documents as may be prescribed by the Ministry.
A franchisee must renew his taxicab license before the last date of the month of expiration date of the licensing term.
Taxicab license renewed after the expiration of the licensing term is considered a late renewal and is subject to late payment fees.
Transferability (Sale of a Taxicab License and/or Taxicab)
Upon the voluntary sale or transfer of a taxicab by the owner or its legal representative, thetaxifranchiseeshallimmediatelynotifytheMinistryoftheintension/decisiontotrade its taxicab license.
Re-Possession
Any taxicab license which is transferred involuntarily because of a default in the payment of installments due under the contract of sale, or any other contract or in any other manner, and which is disposed of according to law at public or private sale, as the case may be, may be operated by the purchaser thereof, or its vendee, provided the purchaser or its vendee is acceptable to the Ministry as a person suitable to operate a taxicab.
The Taxicab
A vehicle shall be used as a taxicab, only after it has been thoroughly examined and inspected and found to comply with all the requirements of the Road Traffic Law of the State and under a special Taxicab inspection
A laminated card frame shall be affixed in front of the passenger seat beside the driver facing the passengers, and shall be of a size sufficient to display the driver’s
The taxicab shall be equipped with a taximeter approved by the Ministry
Franchisees must deliver the taxicab (vehicle) for inspection as designated by the Ministry at least once a
The Ministry shall notify franchisees of their scheduled vehicle inspections by any method, including but not limited to mail, e-mail, fax, SMS or by web-site
In addition to inspections scheduled in accordance, the Ministry may request a franchisee to submit the franchisee’s vehicle for an inspection based upon a
The Ministry may notify a franchisee of a complaint-based inspection by phone call, e-mail, or citation. Franchisee must submit the vehicle to inspection within two (2) business days of Ministry notification.
A franchisee who fails to bring his taxicab (vehicle) for inspection as required by this policy rule and failed to either secure a rescheduled vehicle inspection date pursuant to Ministry procedures or fails to surrender to the designated Ministry office its taxicab licence instrument and licence card before 10:00am of the scheduled inspection date is considered to have missed its inspection and is subject to the missed inspection penalties.
Franchisees must bring to any scheduled inspection the taxicab licence instrument and licence card at the time of the If the franchisee does not bring the licence instrument and licence card for the inspection the vehicle will be considered to have missed the scheduled inspection and is subject to the missed inspection penalties.
The Taxicab Requirement
The vehicles to be deployed as e-Hailing Business and taxicab must meet the following conditions:
Be brand new (for corporate taxi)
Where the vehicle is not new, the vehicle must be within the first three (3) years of its manufacture as specified by the manufacturer (for corporate taxi)
The capacity of the vehicle must not be less 3cc.
A completed, signed and dated safety features compliance form prescribed by the
Requesting Change of Equipment (COE) Processing
A franchisee must submit a request for a change of equipment at least five (5) business days prior to a scheduled periodic inspection. Any change of equipment request submitted less than five (5) business days prior to the scheduled period of inspection date may result in a rescheduling of the periodic inspection date and attract affine/penalty.
Replacement of Unsafe Taxicab
In determining whether any taxicab vehicle is unfit for public use, the Ministry shall give consideration to its effect on the safety, health, comfort and convenience of the drivers and passengers, and its public appearance on the streets of
If the Ministry finds a taxicab (vehicle) to be unfit for public use, the Ministry shall suspend the vehicle until it passes the Special Taxicab Inspection and it is found to be fit for public use.
Franchisee shall keep its taxicab(s) in an undamaged, clean and safe condition; and shall not operate the taxicab(s) unless the vehicle is in a clean and undamaged conditions with clear
Minimum Standards of Cleanliness Include, But Are Not Limited To:
the interior of the vehicle (including the boot) shall be kept free from all waste paper, cans, garbage, or any other item not intrinsic to the vehicle or to the conduct of operating a taxicab;
the interior of the vehicle (including the boot) shall be kept free from all dirt, grease, oil, adhesive resin, or any other item which can be transferred onto the person, clothing or possessions of a passenger by incidental contact;
Theinteriorofthevehicle(includingtheboot)shallbekeptfreefromallinfectious species (e.g. bed bugs and lice) which can be transferred onto the person, clothing or possessions of a passenger by incidental contact;
The interior of the vehicle shall be kept free of any material or odor which a reasonable person would find noxious or unpleasant;
The exterior of the vehicle shall be kept free from all dirt, grease, oil or any other substance besides water or snow which can be transferred onto the person, clothing or possessions of a passenger by incidental contact;
The taxicab shall be equipped with a tracking device for the purpose of tracking and monitoring the movement of the taxicab;
All taxicab vehicles must be equipped with a permanently installed air conditioning system capable of regulating the interior temperature of the passenger section;
Any franchisee request shall be in writing to the Commissioner to evaluate a specific year, make and model of vehicle for use as a taxicab;
The operational lifespan of the vehicle must not exceed ten (10) years from date of manufacture; and
(j) Roadworthy Certification:
If the vehicle is new, the required Roadworthy Certification can only be required after six (6) months of usage or if it is evident that a roadworthy check needs to be carried out on the vehicle in line with the TSRL,
If the vehicle is not new, either it has been in usage as new for more than 6 (six) months or was procured as second-hand vehicle; it must be certified every six months or if it is evident that a roadworthy check needs to be carried out on the vehicle, certification must be done on demand immediately taken off the road for roadworthy certification.
Periodic Inspection (Special Taxicab Inspection)
The Ministry shall cause all taxicabs now or hereafter to be inspected at least once every year aside from the regular roadworthy certification prescribed by the RTL 2012.The date of such inspection and the signature of the person making the inspection shall be recorded upon the inspection card as designated by the Ministry.
Taxi Stands
The Ministry shall designate space upon the public highways and streets of Lagos, Taxi stands for the exclusive use of taxicabs, awaiting passengers. it shall be the duty of the Ministry to create as many taxi stands as possible and needed and/or working partnership with taxi franchisees to create taxi parks in order to eliminate cruising and to permit wherever it does not interfere with traffic, the space adjacent to railways and elevated entrance, public offices, shopping malls, markets and exits to be used as taxi stands in accordance with the State Urban and Regional Planning Laws Regulation.
PART 4
E-HAILING BUSINESS OPERATION
SERVICE ENTITY DOCUMENTATION
Service Entity Permit Provisional Licence Application/Renewal
No entity shall operate as a Support Entity in Lagos State without first having obtained a Support Entity Permit from the Licencing Authority. The Licence shall be valid for the First Two (2) years subject to annual renewal.
The Service Entity Permit must apply for Operator’s Provisional Licence prior to operation and a payable fee of ₦8,000,000.00 (Eight Million Naira only) for 1000 (One Thousand) units of vehicles on the e-Hailing Platform.
The Service Entity Permit must apply for Operator’s Provisional Licence prior to operation and a payable fee of ₦20,000,000.00 (Twenty Million Naira only) for 1001 and above (One Thousand and One above) units of vehicles on the e-Hailing Platform.
The Service Entity Permit Provisional Licence is subject to annual renewal with a renewable fee of ₦4,000,000.00 (Four Million Naira only) for every 1000 (One Thousand) unit of vehicles on the e-Hailing Platform.
The Service Entity Permit Provisional Licence is subject to annual renewal with a renewable fee of ₦10,000,000.00 (Ten Million Naira only) for every 1001 and above (One Thousand and One above) unit of vehicles on the e- Hailing Platform.
All Operators of e-Hailing Business Services must pay the State Government 30 Naira Road Development Fund on each transaction (Trip) paid by the passengers to the
The Service Entity Permit must commence the renewal process 3 (Three) months before expiration of the existing
The Service Entity Permit must have a quarterly meeting with the Ministry of Transportation for Operational updates and
Operator(s) must be registered under a licenced Service Entity Permit as no single operator(s)/operation will be
On payment of the Licencing fee, the Licensing Authority shall issue a Support Entity Licence to operate e-Hailing Business using the e-Hailing
All Service Entity must provide the Ministry with details of the Drivers and subject Data on trips which includes; Name, Phone Number, Email address, Driver’s licence, Vehicle licence and NIN (National Identification Number) on a weekly and monthly basis for planning, revenue and security purposes.
All Service Entity must provide report of accident on a weekly and monthly basis which occur during active trips for the purpose of insurance
The Ministry undertakes that all information/data from the service entity which may come to it in the cause of operation will be treated with utmost confidentiality and same will not be disclose to any third party without prior consent of the service
All Service Entities must have a “Ride Hailing Insurance package” that covers personal liabilities of drivers and passengers including loss of personal devices, injury protection, disabilities and medical
All Drivers on the e-Hailing Platform must visit the Ministry’s One-Stop Centres across the State for issues bothering on Vehicle Registration and
All Service Entity must abide to rules and regulation guiding Lagos State Public Transportation
Operator’s (Taxi Cab and App Operators) Provisional Licence Application/Renewal
Operator’s must apply for Operator’s Provisional Licence prior to operation and a payable fee of ₦5,000,000.00 (Five Million Naira only) for 50 (Fifty) units of
Operator’s must apply for Operator’s Provisional Licence prior to operation and a payable fee of ₦10,000,000.00 (Ten Million Naira only) for 51 and above (Fifty-One and above) units of
The Operator’s Provisional Licence is subject to annual renewal with a renewable fee of ₦2,500,000.00 (Two Million, Five Hundred Thousand Naira) only for 50 (Fifty) units of
The Operator’s Provisional Licence is subject to annual renewal with a renewable fee of ₦5,000,000.00 (Five Million Naira) only for51 and above (Fifty-One and above) units of Cabs.
The Operator’s must commence the renewal process3 (Three) months before expiration of existing
Operators must have a quarterly meeting with the Ministry of Transportation for Operational updates and
Taxi Operators must operate under a particular franchise as no single operator/operation will be
Required Documents for Commuter (e-Hailing and Taxi Cab) Vehicle Registration The franchisee, at franchisee’s expense, shall provide the following documents when requesting to register or change an equipment (or replacement of the taxicab):
A completed, signed and dated COE request form on a form prescribed by the Ministry;
Title of vehicle or manufacturer’s certificate of origin;
A Bill of Vehicle Sale or Vehicle Lease;
Taxicab licence (hard card) card;
Plate number
Allocation of plate number form
Proof of ownership
Pre-registration Inspection Certificate
Roadworthiness Certificate
Insurance policy (Minimum of 3rd Party)
Vehicle license
Hackney Permit
All Route Document (Body Tag)
C. DRIVER’SDOCUMENTATION
Driver’s Literacy: All registered drivers with any Operator must be
Valid/Genuine Drivers’
OriginalAnnualcertificateofcompetencefromLagosStateDrivers’Institute (LASDRI) in order to determine their competence and fullness (LASDRI)
Lagos State Residents Registration Agency (LASRRA)Card.
Drivers’ Badge
OPERATIONAL GUIDELINES
Provision of Data by Service Entities to the Ministry (operational reports on trips and accidents on a weekly and monthly basis etc.)
Service Entity must provide the Ministry with operational report trip and accident data on a weekly and monthly basis for planning, revenue and security purposes.
Auditors shall be provided with data by the Service Entity Operating e-Hailing Business in the State for verification of data/report
Service Entities (e-Hailing operators) must have comprehensive insurance cover for all drivers and passengers on their platform (i.e. transits insurance).
Service Entity Permit (e-Hailing Business Operations) InexerciseofthepowersconferreduponhimbySection139oftheLagosStateTransport Sector Reform law, 2018 and all powers enables the Commissioner makes the Regulations.
In these Regulations, unless the context otherwise requires-
“Hackney Carriage” means any motor vehicle designed by official paintings or sticker approvedbytheMotorVehicleAdministrationagencyandconstructedtocarrynotmore than seen (7) persons, used or intended to be used for carrying passengers for hire or renewal under a contract, expressed or implied for the use of the vehicle as a whole at or for a fixed or agreed rate or sum;
“Support Entity” means a corporation, partnership, sole proprietorship, or other entity that is registered in Nigeria and licensed pursuant to this Regulation as an entity that supports or promote Hackney Carriage Operations in Lagos State;
“Support Entity Permit” means a permit issued by the Licensing Authority entitling the holder to operate as a Support Entity;
“Licensing Authority” means the Directorate of Public Transport and Commuter Services or such other body as the Commissioner of Transport may from time to time designate; and
“Licensed Driver” means an individual who is licensed to operate a Hackney Carriage in Lagos;
The enactment of these Regulations, no person shall use a vehicle to provide Hackney Carriage Services without such vehicle being licenced as a hackney Carriage, as set out in Sections 135-137 of the TSRF,2018.
Before operating as a Licensed Driver:
The individual shall apply to the Licensing Authority in the form specified and shall:
Be at least twenty-one (21) years of age, and a citizen of Nigeria.
Possess a valid National Driver’s Licence;
Possess a certificate of competence issued by the Lagos State Drivers Institute;
The Licencing Authority shall issue a driver’s badge to each applicant that meets the requirements set out in (a) above within five (5) business days.
An individual shall not act as a Licenced Driver where such individual does not have a driver’s badge issued by the Licensing Authority.
A Licensed Driver shall have the driver’s badge on their person at all times whilst
operating a Hackney Carriage.
A Licenced Driver shall not solicit or accept street hails.
A Support Entity shall not be deemed to control, direct or manage Vehicles or Drivers, except where expressly agreed to by written contract.
For the purposes of this Regulation, Hackney Carriage shall be considered a “Taxi”, “Cab”
,or “Taxicab” neither shall a Support Entity be considered an “Operator” within the meaning of Scheduled 7 of the TSRL, 2018.
These Regulations may be cited as TSRL (Interim Hackney Carriage) Regulation (8) and shall apply to all Hackney Carriage operations in LagosState.
PART5
PENALTIES FOR NON-COMPLIANCE
Non-compliance by either the Taxi Operators or App deployment Organization with the provisions of these Guidelines will attract the following penalties and fines as contained in Section 68, Schedule 1, Section 326 (40, 48 & 49) as well as the various schedules outlining Offences and Penalties of the Transport Sector Reform Law, 2018:
Any e-Hailing Operators or the Service Entity Licence holder who fails, fails, neglect or refuses to comply with the provision of these guidelines shall have their operating licence queried upon the 1stnon-compliance. Subsequent non- compliance with relevant requirement shall result in the suspension of same for 14 (fourteen) days pending compliance, and a fine of ₦100,000.00 (One Hundred Thousand Naira only) to be paid during this period.
Any driver(s) under the e-Hailing Platform who failed to comply with the traffic rules and regulations shall be fined or penalized in line with the relevant Sections of TRSL,
If after 14 (fourteen) days, the Taxi Operators or the Service Entity Licence holder does not comply, the licence of such Operators is liable to be revoked.
Any Driver who flouts any provision of Lagos State Transport Sector Reform Law, 2018 as set out in the Section highlight above, and shall be punished in line with the penalties indicated
Taxi Operators or the Service Entity Permit whose Driver fails to comply with the provision of Lagos State Transport Sector Reform Law, 2018 as well as the provisions of these Guidelines, and such Operator fails, neglect or refuses to call such Driver to order, is liable to have their licence queried and/or suspended as stated in
The penalties for offences under these Regulations, where no other penalties are provided, shallbeasprescribedunderSection323oftheTransportSectorReform Law,2018.
PART 6
IMPLEMENTATION STRATEGIES
CAPACITY BUILDING.
Taxi Operators or the Service Entity Licence holders in partnership with the State enforcement agencies such as VIS, LASDRI and LASTMA will periodically train riders to effectively carry out their responsibilities.
ENLIGHTENMENT
Public enlightenment shall be organized by the State Ministry of Transportation on print and electronic media, workshop, seminar and conference to create the necessary awareness.
ENFORCEMENT
The Vehicle Inspection Service (VIS), Nigeria Police, Lagos State Traffic Management Authority (LASTMA) and Federal Road Safety Corps (FRSC) shall ensure that the above-mentioned conditions/specifications are met and enforced in line with Section 68, Schedule 1, Section 326 (48 & 49) and VIS and LASTMA Offences and Penalties.
It is expected that, if adopted and implemented the policy will drastically achieve the objective of safe and convenient e-Hailing Business and Taxicab Operations in the State.
Developing A Convincing Fintech Business Plan
A business plan is a strategic plan that articulates your Fintech goals and operational. framework It acts as a comprehensive document that describes the trajectory that the company wants to follow, covering several aspects from the mission statement to financial projections. A well-crafted business plan is not just a formality, but a dynamic action plan that guides entrepreneurs through the complexities of their business. The company must include the following:
Executive Summary:
A brief overview of the company, including its mission, vision and key financial projections. Regardless of the summary, the summary sets the tone for the entire plan.
Company Description:
Detailed description of the company, its history, mission and the problem or need it aims to solve in the market.
Market analysis:
Identify the industry landscape, target market, competitive analysis and opportunities and challenges.
Organization and Management:
Knowledge of organizational structure, key team members, their roles and how their skills contribute to the success of the company.
Products or Services:
Full description of the products or services offered, including their unique selling points, features and benefits.
Marketing and Sales Strategy:
A plan to reach target audiences, promote products or services, and achieve sales goals.
Request for funding (if applicable):
If you are requesting external funding, this section describes the amount needed, how it will be used and the potential return on investment.
Financial Forecasts:
Detailed financial forecasts, including income statements, balance sheets and cash flows, that provide guidance for financial success.
Appendix:
Additional materials such as biographies of key team members, additional charts or graphs, legal documents or other relevant supporting information.
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Tel: (+234) 802 320 0801, (+234) 807 576 5799
Email: info@mocaccountants.com
Office Address: 5, Ishola Bello Close, Iyalla Off Street, Alausa, Ikeja, Lagos, Nigeria
Major Challenges of The Transport Business In Nigeria
Poor access to technology: Many transport companies in Nigeria and Africa face the challenge of poor access to technology, which can impact their efficiency and competitiveness.
Unpredictable government policies: Unpredictable government policies can create challenges for transport companies in Nigeria and Africa, as they can impact the business environment and regulations.
Lack of standardization: The lack of standardization in the transport industry in Nigeria and Africa can be a challenge for companies, as it can lead to inconsistencies and inefficiencies.
Inadequate road safety measures: Inadequate road safety measures in Nigeria and Africa can lead to accidents and impact the safety of transport companies and their passenger
Inadequate insurance coverage: Many transport companies in Nigeria and Africa do not have adequate insurance coverage, which can lead to financial losses in case of accidents or other unforeseen events.
Political instability: Political instability in Nigeria and Africa can create challenges for transport companies, as it can impact the security and stability of the regions they operate in.
Poor communication infrastructure: Poor communication infrastructure in Nigeria and Africa can hinder the operations of transport companies, as it can make it difficult to communicate with customers and suppliers.
Inefficient port operations: Inefficient port operations in Nigeria and Africa can create delays and increase the operating costs of transport companies.
Poor quality of vehicles: The poor quality of vehicles available in Nigeria and Africa can be a challenge for transport companies, as it can impact their efficiency and safety.
Lack of access to finance: Many transport companies in Nigeria and Africa face the challenge of a lack of access to finance, which can hinder their growth and expansion.
Poor customer service: Poor customer service can impact the reputation of transport companies in Nigeria and Africa and lead to a loss of customers.
Lack of proper documentation: Transport companies in Nigeria and Africa often face the challenge of a lack of proper documentation, which can lead to delays and legal issues.
Inadequate training: Inadequate training of drivers and other personnel can impact the safety and efficiency of transport companies in Nigeria and Africa.
Corruption: Corruption in Nigeria and Africa can create challenges for transport companies, as it can lead to illegal fees and other corrupt practices.
An Overview of Transportation in Lagos State
Lagos State is the smallest State in Nigeria by landmass, lying on an area approximately measuring 3,577km2. This would not have mattered except that the State harbors a population of 17.5 million people, which includes residents and daily visitors from surrounding States and satellite towns. The growing population and rapid development of Lagos State have thus placed a strain on the State’s public transport system, resulting in traffic congestion, and pollution. The means of public transportation in Lagos are taxis, buses and commercial motorcycles, known locally as okada.
Public transportation therefore is a thriving enterprise for private transporters and the State Government. The Lagos Metropolitan Area Transport Authority (abbreviated LAMATA) is one of the State government’s transport agencies. The State Chapter of the National Union of Road Transport Workers (NURTW) controls the operation of commercial buses, taxi and motorcycle operators in terms of operational normalcy, fare and revenue generation. Traditional transport operators collect little or no data from their passengers and the NURTW has no concern in this area. Issues surrounding road safety, fair pricing, security and welfare may have received little concern as a result.
Tech Companies to the Solution:
The entrance of multinational ride-hailing companies like Uber, Bolt and the recently banned Gokada changed the landscape in this regard. These companies introduced the safety, security and fair pricing lacking in the traditional transport system. Their mode of operation involves passengers’ use of a software application to order a ride and get the fare quotes. Payment is made at the end of the ride either on the passenger’s pre-selected preferences, such as a debit card on the records or cash. The drivers are independent contractors who use their own vehicles, although they can rent or lease same for use on the platform. The companies regulate the drivers as they must meet requirements for age, health, car age and type, license and must pass a background checks.
Ekocab and LASG Guideline for Ride-hailing Companies:
One of the ride-hailing companies jostling to operate in Lagos State is Node E-hailing Services which was incorporated in Nigeria. The company launched its mobile app called EkoCab in January, 2020.
In March, 2020, its CEO – Mr. Segun Cole stated on his Twitter page, that “Ekocab” intends to host the local yellow taxi drivers in Lagos under its online platform. Mr. Cole also hinted on the State Government’s plan to regulate ride hailing companies like Uber and Bolt on issues including data privacy. It is noteworthy that personal data in this case includes drivers/customers’ name, email address, phone number, place of residence, geolocation and driving routes, information about vehicles (including registration number), driver’s license, photo, profession and identity documents, data about criminal convictions and offences, and financial details. These data are supposed to be processed (a term that includes usage, storage, transmission, transfer, arrangement, etc.) for the purpose of carrying out stated business objectives.
Recently, the Lagos State Government issued the Guidelines for Online Hailing Business Operation of Taxis in Lagos State, 2020 (‘the Online Hailing Business Guideline’). True to Mr. Cole’s earlier hint, the Guideline, among other provisions, gives the State’s Ministry of Transportation access to the database of ride-hailing operators. According to Section 4.2.1 of the Guideline:
“The Ministry and her Agencies shall have access to the data base of the operators/companies operating e-Hailing Taxi Business in Lagos State.”
Data is the new currency. Advertisement, competition, financial privacy and location surveillance are some of the areas where the use of data has become important and where challenges are faced if data is processed in an unregulated manner. It is therefore necessary to consider the conditions under which ride-hailing companies can share their data with the Lagos State Government and its agencies.
Data Privacy & Protection in Nigeria:
Technological progress further highlighted the need for individuals to ensure the privacy of, manage and protect the information that companies and third parties hold about them. This is a constitutional matter, as the 1999 Constitution of the Federal Republic of Nigeria in Section 37 provides that:
“The privacy of citizens, their homes, correspondence, telephone conversations and telegraphic communications is hereby guaranteed and protected.”
Further to the above, the National Information Technology Development Agency (NITDA) issued the Nigeria Data Protection Regulation 2019 (the NDPR) and the Guideline for the Management of Personal Data by Public Institutions, 2020 (the PI Guideline). The NDPR among other things seeks to safeguard the rights of natural persons to data privacy and protection. It applies to all storage, processing and exchange of Personal Data conducted in respect of Nigerian citizens. However, data processing may be unlawful, like when it is done for corporate gains or disclosure to 3rd Party to the detriment of the data subject.
Under Section 2.2 of the Regulation, a company can lawfully process personal data where any of the following exist:
a) Consent by the data subject to the processing of his/her personal data for one or more specific purposes;
b) processing is necessary for the performance of a contract to which the Data subject is party or in order to take steps at the request of the Data Subject prior to entering into a contract;
c) Processing is necessary for compliance with a legal obligation to which the Controller is subject;
d) Processing is necessary in order to protect the vital interests of the data subject or of another natural person, and;
e) Processing is necessary for the performance of a task carried out in the public interest or in the exercise of official public mandate vested in the controller.
Consequently, it is important to ascertain whether a company can lawfully share with, and transfer personal data to third parties like the State Government or its agencies. Granted that customers and drivers of these ride hailing companies are obligated to sign up to its Privacy Policy, it is imperative that they, as data subjects, be fully informed of the sharing of their data with a 3rd party and the purpose of such sharing. In essence, they must consent to such processing activities beforehand. Even after consent based on full disclosure is given, the ride-hailing companies must ensure the existence of a contract between it and the third party, which will, inter alia, stipulate that shared data would remain protected as statutorily required.
The governing principles of processing data under the NDPR are stated in Section 2.1 which provides that personal data shall be:
a) Collected and processed in accordance with specific, legitimate and lawful purpose consented to by the Data Subject; provided that: further processing may be done only for archiving purposes in the public interest, scientific or historical research purposes or statistical purposes; and any person or entity carrying out or purporting to carry out data processing under the provision of this paragraph (b) shall not transfer any personal data to any person.
b) Adequate, accurate and without prejudice to the dignity of human person;
c) Stored only for the period within which it is reasonably needed, and;
d) Secured against all foreseeable hazards and breaches such as theft, cyberattack, viral attack, dissemination, manipulations of any kind, damage by rain, fire or exposure to other natural elements.
The said Section goes ahead to provide that anyone who is entrusted with the personal data of a data subject (i.e. data controller) or who is in possession of the personal data of a data subject (i.e. data administrator) owes a duty of care to the said data subject and shall be accountable for his acts and omissions in respect of data processing. This duty of care extends to its employees, privies and any other person who obtains such data from it.
Moreover, the PI Guideline recognizes increased Government interest in the personal data of citizens and residents. Section 6.0 thereof provides that any Public Institution seeking to process personal data in public, legal or for vital interest of a data subject shall:
a) ensure such request is endorsed or signed by a Governor of the State, Minister of the Federal Republic or the Chief Executive Officer of the PI;
b) state clearly the purpose for such processing and disclose the vital or public interest to be served by such processing;
c) provide a clear description of the output sought and manner the output shall be applied for the benefit of data subject;
d) provide proof of compliance of system requirements and;
e) Provide an undertaking to protect the information shared, avoid any attempt to deanonymize the information shared; and refrain from using the data for any other purpose.
The above obligations on the Government and its agencies are important, especially the need to state the purpose or use of the personal data. Speaking on this issue after a parley with ride-hailing operators on 14th August, 2020, the State’s Transport Commissioner – Dr. Frederic Oladehinde stated as follows;
“We are not asking the e-hailing companies to release detailed data. All we are asking from them data for trip movement, so that we can calculate the right charge and levy due to the Government. This data is to be supplied every week”.
Notwithstanding the above clarification, relevant portions of the Online Hailing Business Guideline are yet to be amended. Moreover, to ensure a foolproof understanding of the obligations of the parties involved, it is necessary that a contract pursuant to Article 2.7 of the NDPR 2019 is executed, and an undertaking pursuant to Article 6.0(e) of the Public Institutions Guidelines 2020 is given by the State Government. Also, a full disclosure of the State Government’s processing activities in this regard should be included in the company’s Data Privacy Policy so that data subjects will be made aware before signing up for services.
In addition to the above, the Lagos State Government and its agencies are obligated under the Public Institutions Guideline to protect personal data to which they have lawful access. According to Article 2.6 of the PI Guideline, such obligation entails compliance with the NDPR 2019 and international information security standards, submission of their Data Protection Impact Assessment (DPIA) to NITDA and retention of a Data Protection Compliance Organization (DPCO). These are to ensure the protection of the personal data generated by the ride-hailing companies which they have access to.
Conclusion
Transportation is an integral part of economic development in Nigeria. The transport sector has a significant impact on the movement of people and goods, which affects other sectors of the economy. The transportation sector in Nigeria contributes to the growth of the economy.
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Tel: (+234) 802 320 0801, (+234) 807 576 5799
Email: info@mocaccountants.com
Office Address: 5, Ishola Bello Close, Iyalla Off Street, Alausa, Ikeja, Lagos, Nigeria
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