The Lagos State Government has reduced the operational license fee placed on ride-hailing companies operating in the state by 20%.

The decision was taken during a stakeholders’ meeting with the State Governor, Babajide Sanwo-Olu on Friday.

Governor Sanwo-Olu’s media aide, Jubril Gawat, who disclosed the outcome of the meeting, also noted that it was attended by operators like Uber, Bolt, and BMP among others.

UPDATE: Today, The Lagos State Govt had a meeting with the E-Hailing Ride Stakeholders which was chaired by the Governor of Lagos State, Mr @jidesanwoolu at the Lagos House, Marina .. The Following resolutions were made which was agreed by ALL Parties: @Boltapp_ng @UberNigeria pic.twitter.com/WNrayVzpMG

— Gawat Jubril A. (@Mr_JAGss) August 14, 2020

The Backstory: Earlier this week, the Lagos State Government had announced new guidelines designed for ride-hailing operations in the state. According to the new regulatory framework by the state which will take effect from August 20, 2020, ride-sharing companies were required to pay the Lagos State Government a 10% service tax on each transaction.

The new guidelines required operators to pay a provisional license fee of N10,000,000.00 for every 1000 cars in their unit and N25,000,000.00 for every unit above 1000 cars. Annual renewal of the license would cost N5,000,000.00 for every unit of 1000 cars and N10,000,000.00 for units with over a thousand cars in operations.

The guidelines also required that the vehicles must be brand new or within the first three (3) years of its manufacture as specified by the manufacturer.

Now, during the meeting with the Governor, all parties agreed to newer resolutions which are:

1. There must be comprehensive insurance cover which will cover drivers and passengers.
2. A reduction of 20% on the operational licensing fees.
3. A flat fee of N20 to be known as Road Improvement Fund which will be levied on each ride/trip.
4. A 90-day compliance with documentation for the drivers – There will be a one-stop shop for all the documentation (especially LASSRA Card- Lagos State Resident Registration Agency.
5. E- Hailing companies to work with various bodies in the business for a good relationship.
6. There MUST be due diligence and background checks on all drivers.
7. Riders should desist from offline trips and transactions.
8. E-Hailing Firms must make necessary data available to the Govt.

Mr. Gawat also noted that media reports about operators being required to only use cars that are not more than 3 years are incorrect. Instead, the rule only applies to Corporate Cabs.

“This has nothing to do with the E Hailing business,” Gawat said.

On the requirements for sharing data, the Lagos state government said that data shared would be encrypted, and the personal information of ride sharers would not be disclosed.

“This will help Government clear up issues around congestion & also calculation for the charge paid to Government,” he added.

Uber had earlier told Nairametrics, after the guidelines were released, that it was willing to engage the government on regulations to ensure “our operations align with best practices locally and internationally.

“We have always been willing to engage with governments on regulations to ensure our operations align with best practices locally and internationally, as we believe regulations need to support innovative technology ideas that fit 21st-century businesses.

“The current proposed regulations are inconsistent and unclear. We are working to better understand how they will impact the future of our business and network of driver-partners. We will give an update in due course,” Uber said.

The meeting with the governor was needed, as clarifications were required on the execution of the guidelines.

The spread of novel Corona Virus Disease (COVID-19) in Nigeria continues to record significant increase as the latest statistics provided by the Nigeria Centre for Disease Control reveal Nigeria now has 48,445 confirmed cases.

On the 14th of August 2020, 329 new confirmed cases and 7 deaths were recorded in Nigeria, having carried out a total daily test of 2,976 samples across the country.

To date, 48,445 cases have been confirmed, 35,998 cases have been discharged and 973 deaths have been recorded in 36 states and the Federal Capital Territory. A total of 344,397 tests have been carried out as of August 14th, 2020 compared to 341,421 tests a day earlier.

COVID-19 Case Updates- 14th August 2020,

• Total Number of Cases – 48,445
• Total Number Discharged – 34,998
• Total Deaths – 973
• Total Tests Carried out – 344,397

According to the NCDC, the 329 new cases were reported from 21 states- Lagos (113), Kaduna (49), FCT (33), Plateau (24), Kano (16), Edo (15), Ogun (14), Delta (13), Osun (10), Oyo (8), Ekiti (6) Bayelsa (6), Akwa Ibom (5), Borno (4), Enugu (4), Ebonyi (3), Rivers (2), Bauchi (1), Nasarawa (1), Gombe (1) and Niger (1).

Meanwhile, the latest numbers bring Lagos state total confirmed cases to 16,369, followed by Abuja (4,665), Oyo (2,943), Edo (2,414), Rivers (1,993), Kaduna (1,755),Plateau (1,689), Kano (1,677),  Delta (1,639), Ogun (1,535), Ondo (1,373), Enugu (980), Ebonyi (911), Kwara (888), Katsina (746), Osun (729), Borno (702), Abia (677), Gombe (648),  and Bauchi (581).

Imo State has recorded 494 cases, Benue (430), Nasarawa (373), Bayelsa (352),  Jigawa (322), Akwa Ibom (246), Niger (229), Ekiti (200), Adamawa (185), Anambra (156), Sokoto (154),  Kebbi (90), Taraba (78),  Zamfara (77), Cross River (73), Yobe (67), while Kogi state has recorded 5 cases only.

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Lock Down and Curfew

In a move to combat the spread of the pandemic disease, President Muhammadu Buhari directed the cessation of all movements in Lagos and the FCT for an initial period of 14 days, which took effect from 11 pm on Monday, 30th March 2020.

The movement restriction, which was extended by another two-weeks period, has been partially put on hold with some businesses commencing operations from May 4. On April 27th, 2020, Nigeria’s President, Muhammadu Buhari declared an overnight curfew from 8 pm to 6 am across the country, as part of new measures to contain the spread of the COVID-19. This comes along with the phased and gradual easing of lockdown measures in FCT, Lagos, and Ogun States, which took effect from Saturday, 2nd May 2020, at 9 am.

On Monday, 29th June 2020 the federal government extended the second phase of the eased lockdown by 4 weeks and approved interstate movement outside curfew hours with effect from July 1, 2020. Also, on Monday 27th July 2020, the federal government extended the second phase of eased lockdown by an additional one week.

On Thursday, 6th August 2020 the federal government through the secretary to the Government of the Federation (SGF) and Chairman of the Presidential Task Force (PTF) on COVID-19 announced the extension of the second phase of eased lockdown by another four (4) weeks.

READ ALSO: Bill Gates says Trump’s WHO funding suspension is dangerous

The Lagos State Governor, Babajide Sanwo-Olu, has listed conditions that must be met, in order to bring a lasting solution to the dispute between petroleum tank farm owners at Ijegun-Egba area of Amuwo Odofin and the residents of the host community.

One of these conditions is that tank farm owners and petroleum tanker drivers must subscribe to operational regulations that limit the loading of tankers beyond their weight capacities. Also, all Federal Government’s regulatory agencies operating in the area must stop working at cross purposes with the state’s agencies, in the bid to address the environmental degradation in the area.

The governor also stressed that both the federal and state authorities should collaborate on the regeneration efforts of road and infrastructure in the area.

This disclosure was made by the Lagos State Governor on Thursday, August 13, 2020, in Marina, while receiving members of the House of Representatives Ad-Hoc Committee on the Relocation of Tank Farms. The Committee, which was constituted by the Speaker, Femi Gbajabiamila, was also intended to investigate and make recommendations on the issue.

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The Hon Sergius Ogun led Ad-Hoc Committee had initially gone on a two-day inspection to Ijegun before sharing the findings with the Governor.

During the meeting, the governor pointed out that the regeneration of Ijegun-Egba was as important to the community as smooth transportation of petroleum products was important to the tank farms’ owners. He warned that the country could not afford to allow the host community’s agitation to hinder the operations of the tank farms, which, he said, supply 45% of petroleum products consumed in the country. The governor said:

“The Ijegun-Egba tank farms are strategic national assets created by the private sector to serve the whole country. Between 40 to 45% of the entire petroleum products that go across the country pass through that corridor. Even if it is to cater for our own need, we must take care of those assets, because they are like a strategic reserve for us as a nation.

“The rudiment of the problem in the area is a logistic issue, which is to ensure the movement of oil tankers in and out of the area without affecting the wellbeing of the community members. We have had to contend with environmental issues and the extent of the bad road network on the corridor is glaring. We have seen how small-capacity tankers are carrying up to 70,000 litres of petroleum products when they should be taking only 30,000 litres. This has exerted great pressure on the roads and the officers that are supposed to monitor them look away.

“These are part of the issues we need to resolve with the stakeholders. If we can let these people run their businesses within the confines of regulations, part of the solutions would have been achieved in the process. Also, there is a need for total regeneration of the roads in the area. We want the environment to be conducive for business, but we must do that in line with the safety of lives and property. We have talked with tank farms’ owners and we all need to come together. It is important for the Federal Government’s agencies to have an agreement and we are ready to play our own part.”

The committee was set up following the agitations and demands by residents of Ijegun Egba Satellite Town for the immediate relocation of the tank farms in the residential area. This, according to the residents, would help to prevent further environmental degradation and loss of lives and property in the area.

The host community accused tank farm owners of disrupting the drainage system, damaging roads within the community, and even converting roads to parking lots for their tankers.

The Governor stressed that genuine solution would be achieved if the entire network of infrastructure in the host community was cleaned up and regenerated. He, however, revealed that the new regeneration design that the state came up with could not take off because the federal authorities had not agreed with the plan.

Furthermore, Sanwo-Olu noted that it is high time for all the stakeholders to come together in order to provide a lasting solution to the issue.

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“After your thorough assessment of the situation, I hope you would be able to call all relevant stakeholders and agencies of Government together on the discussion table. We are committed to any effort that’ll bring a permanent solution. We know how much of investment we have in the area, but businesses have to be done under a safe and controlled environment. We want every stakeholder to play their roles,” he said.

Making his own remark, the Chairman of the Ad-Hoc Committee, Hon Ogun, admitted the inability of the Federal authorities to work collaboratively with the Lagos State Government was part of the reasons the community’s agitation festered. He, however, promised that the House would prevail on the federal agencies to close ranks with stakeholders and bring about lasting solutions.