Uber and Bolt are set to face expensive ride-hailing regulation in Africa’s largest city

Ride-hailing companies operating in Lagos will soon 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 ride-hailing companies like Bolt and Uber (Lagos is home to a majority of its over 9,000 active drivers across Nigeria) will be key targets of the proposed rules. The regulations are expected to come into full force on Aug. 20.

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