Nigerian drivers for ride-hailing platforms such as Bolt and Uber are calling on the federal government to establish nationwide regulations to replace the unfavorable and varied state-level policies currently in place. These drivers, represented by the Amalgamated Union of App-based Transporters of Nigeria (AUATON), argue that state-imposed rules, including licensing fees and mandatory trip data sharing, are undermining their livelihoods.
Ride-hailing companies emphasize the independence of their drivers, which complicates the creation of a unified regulatory framework. AUATON has been actively advocating for the rights of drivers. In June 2024, the union participated in a nationwide strike organized by the Nigerian Labour Congress, expressing their dissatisfaction with economic policies that negatively impact gig workers.
Additionally, in July 2024, AUATON protested a ₦45,000 parking fee imposed on drivers by the Federal Airports Authority of Nigeria (FAAN), arguing that such costs should be directed at ride-hailing platforms rather than individual operators. The drivers’ concerns arise from a series of state regulations introduced in recent years. For example, Lagos State implemented guidelines in 2020 that mandated permits, licenses, and trip data disclosure for ride-hailing operators.
In an interview with the News Agency of Nigeria (NAN), the drivers expressed their push for federal regulation. They aim to establish a uniform framework that would supersede the disparate state laws, ensuring consistent standards and protections across the country. They argue that federal oversight would reduce the complexities and financial strains imposed by varying state regulations, thereby safeguarding their livelihoods and promoting fair competition within the industry.
Although these measures aimed to standardize operations, drivers say they have added unnecessary costs and administrative hurdles, threatening their income and job security. These challenges have reignited debates over how ride-hailing drivers are classified within the industry. Companies like Bolt assert that their drivers are independent contractors, not employees, which places the burden of regulatory compliance largely on the drivers themselves.
The call for federal oversight seeks to unify regulations across Nigeria, reducing operational disparities between states and ensuring consistent protections for drivers. AUATON contends that federal regulations could alleviate financial burdens, simplify compliance, and promote fair competition in the industry.
However, creating a national framework would require balancing the interests of state governments, ride-hailing platforms, and drivers. Critics caution that overregulation could stifle innovation and growth in the sector, while under-regulation could leave drivers vulnerable to exploitation.
As the gig economy continues to expand in Nigeria, the outcome of this push for federal regulation could set a precedent for how emerging industries are governed, potentially influencing labor rights, business operations, and regulatory approaches in the broader African context.
