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Lagos is Nigeria’s commercial heartbeat, a sprawling megacity with a population of over 20 million people and a transport ecosystem that is as dynamic as it is complex. Ride-hailing platforms like Bolt have revolutionized urban mobility here, offering convenience and income opportunities for thousands of drivers. But with growth comes regulation. Recently, Lagos State introduced a new ride-hailing bill that fundamentally reshapes the rules of the game for both platforms and drivers.
If you drive for Bolt or are considering joining the platform, understanding this bill—and how Bolt is responding—is critical. This article breaks down the new Lagos ride-hailing rules, Bolt’s reaction, the role of driver unions, and what this means for you financially and operationally. We’ll also discuss practical strategies to help drivers navigate this evolving landscape.
Understanding the New Lagos Ride-Hailing Bill
In early 2025, Lagos State formally passed a comprehensive bill aimed at regulating app-based transportation services. This bill was the government’s response to growing concerns about safety, unregulated vehicles, and lost revenue in the booming ride-hailing sector.
Key Provisions of the Bill
– Mandatory Licensing: All ride-hailing platforms must obtain a license from the Lagos Ministry of Transportation, with a fee set at ₦25 million annually. Platforms are responsible for ensuring all drivers operating on their systems are properly registered and licensed.
– Driver and Vehicle Registration: Drivers must register with the Lagos State Traffic Management Authority (LASTMA) and hold a valid Lagos State Driver’s Identification (LASDRI) card. Vehicles used for ride-hailing cannot be older than three years, and annual vehicle inspections are mandatory.
– Per-Trip Levy: A ₦20 government levy per trip has been instituted. This fee will be collected by the platforms and remitted to a Road Improvement Fund aimed at enhancing Lagos’s transportation infrastructure.
– Data Sharing and API Integration: Platforms are required to integrate with Lagos State’s Drive IQ system, enabling real-time data sharing on trips, drivers, and vehicles with government agencies to improve oversight and enforcement.
– Safety and Compliance Enforcement: Strict penalties are introduced for non-compliance, including fines, vehicle impoundment, and suspension of driver operating privileges.
Bolt’s Response to Regulatory Changes
The new ride-hailing bill came at a time when Bolt was already facing pressure from its driver community due to a controversial decision to reduce fares.
Bolt’s Fare Reductions and Driver Backlash
In February 2025, Bolt slashed fares by as much as 50% in some areas as a “market activation” strategy aimed at boosting ridership. While intended to attract more customers during an economic downturn, this move sharply reduced driver earnings.
Drivers, many already struggling with soaring fuel prices and maintenance costs, found their per-trip income halved. For example, a trip that previously earned ₦3,000 might now yield ₦1,500 before commissions and expenses. This drastic cut prompted protests organized by driver unions such as the Amalgamated Union of App-Based Transporters of Nigeria (AUATON) and the Professional E-Hailing Drivers and Private Owners Association (PEDPA), who accused Bolt of exploiting drivers.
Bolt’s Official Clarifications
Bolt clarified that fare reductions were targeted and temporary, applied during specific hours or areas, not across the board. They emphasized that:
– Base fares were not permanently reduced.
– Drivers were informed through app notifications about promotional pricing.
– Performance bonuses remained available to offset fare changes.
Despite this, many drivers reported significant income loss and expressed distrust toward Bolt’s communication.
Compliance with Government Regulation
To maintain market access, Bolt agreed to fully integrate with Lagos State’s Drive IQ platform, allowing real-time sharing of trip and driver data. The company also started remitting the ₦20 per-trip levy as required.
Sources confirm that Bolt is one of the first platforms to submit comprehensive technical documentation for this integration, signaling a shift from previous reluctance to cooperate with stringent government oversight.
Why Bolt Is Complying
Lagos is a key market for Bolt, and the company recognizes that regulatory compliance is necessary to sustain operations. Working closely with government agencies helps Bolt maintain political goodwill and avoid disruptions. However, balancing government demands with driver earnings and customer retention remains a challenge.
Driver Unions and Their Stance
The rise of driver unions has changed the power dynamics in Lagos’s ride-hailing sector. These groups now play a critical role in representing drivers’ interests and challenging both platform policies and government regulations.
AUATON’s Position
AUATON, the most prominent union representing Bolt drivers, strongly opposes Bolt’s fare reductions, calling them “unsustainable” and “exploitative.” The union has led protests and service boycotts, demanding that Bolt restore previous fares and consult drivers before making changes.
Interestingly, AUATON supports stricter government enforcement of licensing and vehicle standards, arguing that regulation will protect drivers from unfair competition and unsafe conditions.
PEDPA’s Approach
PEDPA represents owner-drivers and small fleet operators, focusing on fair and transparent regulation. The group advocates for:
– Financial support such as loans or subsidies to help drivers upgrade vehicles.
– Streamlined licensing processes.
– Data privacy protections regarding the mandatory integration with government systems.
PEDPA engages more diplomatically with government officials, seeking collaborative solutions rather than confrontation.
Growing Influence and Unresolved Tensions
Driver unions now have the capacity to influence policymaking and platform negotiations. However, tensions persist over the rising cost of compliance, fare policies controlled by platforms, and daily operational challenges like frequent roadside checks and document verifications.
Implications for Drivers: Financial and Operational Realities
The combined impact of the new bill and Bolt’s fare policies creates a tough environment for drivers.
Increased Operating Costs
Drivers now bear additional expenses:
– Licensing and renewals for driver IDs, badges, and vehicle inspections.
– The ₦20 government levy per trip reduces net income.
– Vehicles older than three years must be replaced, a costly proposition given limited financing options.
– Increased fuel and maintenance costs amid economic inflation.
Reduced Earnings Per Trip
Bolt’s fare adjustments, combined with commission rates, mean drivers earn less per ride, pushing many to work longer hours to meet income needs, which can lead to fatigue and increased safety risks.
Compliance Risks and Penalties
Strict enforcement means that any missing or expired documentation can lead to fines or vehicle impoundment. Drivers must stay vigilant and up-to-date with paperwork, adding administrative burdens.
Practical Strategies for Drivers Navigating the New Landscape
To thrive amid these changes, drivers can adopt several practical strategies:
Keep All Documents Updated
Regularly check the validity of your LASDRI card, vehicle inspection certificates, and any other required permits. Renew promptly to avoid penalties.
Upgrade Vehicles When Possible
Explore financing options through microfinance institutions or cooperative societies to replace vehicles older than three years. Maintaining a newer vehicle reduces the risk of downtime and fines.
Manage Expenses and Fuel Efficiently
Track your spending carefully and seek fuel-saving driving techniques. Joining driver groups can provide insights on the best petrol stations and maintenance services.
Engage with Driver Unions
Participate actively in unions to advocate for fair policies and collective support, including legal advice and negotiating with platforms.
Use Bolt’s Incentive Programs
Take advantage of any performance bonuses or surge pricing opportunities offered by Bolt to maximize earnings during peak hours.
Navigating this new era requires adaptability, awareness, and collective action. The evolving Lagos regulatory environment signals a more structured ride-hailing sector, which could benefit drivers in the long run if managed well.
