The Lagos State ministry of transportation has stated that taxi hailing company, Uber may be owing 600 million Naira ($1.9 million) in penalties for not having properly registered its business.
This was declared by Anofiu Elegushi, a spokesman at the Lagos Ministry of Transportation in a discussion with CNNMoney last week.
Anofiu stated that Uber has not complied with the government taxi regulations. This has led to the local government cracking down on Uber drivers, requiring them to pay huge sums to register for special taxi licenses.
These Uber drivers in Lagos are being told that they must pay a minimum of 100,000 naira ($320) per car to the local government for a franchise license.
Anofiu clarified that these regulations had previously been in place, but rarely enforced.
Annual renewal fees cost at least 30,000 naira ($95) per car.
Any unregistered taxi drivers caught without a license can be fined 50,000 naira ($160).
According to Anofiu, “It is for the safety and security of our state and … passengers.” “We have started clamping down on the vehicles that operate under the Uber app without registration.”
Uber told CNNMoney in an emailed statement that it’s “actively working with regulators” on this issue. and Elegushi confirmed that Uber is working with the authorities to try to arrange licensing for drivers.
Uber launched in Lagos two years ago and has undertaken over one million trips since it launched. The one millionth trip took place on 16th July 2016 from Yaba to Lekki.
