Urban transportation in Nigeria has become technology-driven. Since e-hailing platforms such as Uber, Boltetc, emerged, the transportation sector in Nigeria has experienced an increase in local entrants. In a notable development, our client, FlexxyDrive Software Technologies International Limited (“FlexxyDrive”), has obtained regulatory approval to operate an e-hailing business in Lagos State. This approval is an important milestone for the Company and Flexxydrive is now better positioned to participate in one of Nigeria’s most significant sectors.
Regulatory Framework for E-Hailing Operations in Lagos State
Lagos State remains the commercial hub of Nigeria and as a result of the increasing population in Lagos State, it remains one of Africa’s largest urban transport markets. It is for this reason that e-hailing businesses are subject to a detailed regulatory supervision administered by the Lagos State Government through the Lagos State Ministry of Transportation.
Operators seeking to provide e-hailing services in Lagos State are required to comply with Guidelines for Online Hailing Business Operation of Taxi in Lagos State, 2020 and Amended Regulation for Online Hailing Business and Taxi Cab Operation in Lagos State, 2023. This Guideline provides the licensing requirements, operational standards, safety obligations, and consumer protection compliance requirements. The regulatory framework is designed to ensure passenger safety, accountability and proper oversight of e-hailing platforms operating within the State.
Obtaining approval to operate therefore requires careful compliance assessments and continuousengagement with the Ministry of Transportation. For a detailed advisory on how to obtain the e-hailing permit in Lagos State, click here.
Before the final approval, licensees are first issued a provisional approval. The provisional approval grants authorisation to commence operations pending the fulfilment of the relevant requirements imposed by the regulators under the notice of provisional approval. Also, upon receiving the notice of provisional approval, licensees are required to write to the Ministry of Transportation, confirming their acceptance of the conditions under the notice of provisional approval. The confirmation of acceptance must be done within seven (7) days from the date of receipt of the notice of provisional approval.
Typically, some of the conditions to be fulfilled under the provisional approval are as follows:
- Payment of the licence fees and an annual renewal fee for the applicable licence category.
- Payment of road development fund of N30 for every trip operated on the platform on a monthly basis.
- Submission of soft copy and hard copy of monthly transactions to the office of the Permanent Secretary of the Ministry of transportation.
- Provisions of adequate measures to ensure safety and security of lives.
- Synchronisation with the Data Sharing Agreement API of Lagos State.
Significance of the Approval
FlexxyDrive’s successful approval demonstrates the Company’s commitment to regulatory compliance and preparedness to operate within Nigeria’s evolving transportation landscape.
The approval positions the Company to participate in the growing e-hailing market by taking advantage of technology to provide transportation solutions tailored to the needs of commuters and drivers within Lagos State.
Our Role
We are pleased to have advised and supported FlexxyDrive Software Technologies International Limited in navigating the regulatory and compliance processes leading to the approval.
Our advisory support included regulatory guidance, documentation support and legal assistance in relation to the applicable requirements for e-hailing operators in Lagos State.
As Nigeria’s economy continues to expand, regulatory compliance will remain central to the successful operation of technology-driven businesses. Companies operating within regulated sectors must continue to comply with legal and compliance obligations as a means of positioning themselves for sustainable growth.We also encourage such businesses to proactively engage with regulators.
We congratulate FlexxyDrive Software Technologies International Limited on this achievement and look forward to supporting the Company in its continued growth and operations within Nigeria’s transportationsector.
