Nigerian drivers for ride-hailing platforms like Bolt and Uber are urging the federal government to establish nationwide regulations to address the challenges posed by unfavorable state-level policies. These drivers, represented by the Amalgamated Union of App-based Transporters of Nigeria (AUATON), claim that rules imposed by individual states, such as licensing fees and mandatory trip data sharing, are severely affecting their earnings and job security.
The situation is further complicated by ride-hailing companies’ stance that drivers are independent contractors rather than employees, a distinction that places the burden of navigating these regulations squarely on the drivers. AUATON has been vocal about these challenges, participating in protests and strikes to amplify their concerns.
In June 2024, the union joined a nationwide strike organized by the Nigerian Labour Congress to oppose economic policies that have negatively impacted gig workers. A month later, AUATON also protested a ₦45,000 parking fee imposed by the Federal Airports Authority of Nigeria (FAAN), arguing that such fees should target ride-hailing companies rather than individual drivers.
The call for federal oversight gained traction after a recent interview with the News Agency of Nigeria (NAN), where AUATON emphasized the need for a uniform regulatory framework to replace the fragmented rules enforced by state governments. For example, Lagos State introduced regulations in 2020 requiring ride-hailing operators to obtain permits, licenses, and disclose trip data. While these measures were intended to standardize the industry, drivers argue that they have instead created financial and administrative burdens.
Federal regulations, the union contends, would simplify compliance, reduce operational disparities across states, and provide consistent protections for drivers. Such a framework could ease financial pressures on drivers, ensure fair competition, and promote sustainability in the industry.
However, creating a nationwide regulatory system comes with its own set of challenges. It would require balancing the interests of state governments, ride-hailing platforms, and drivers. Critics warn that excessive regulation could hinder innovation and growth in the sector, while insufficient oversight might leave drivers exposed to exploitation.
As Nigeria’s gig economy continues to grow, the outcome of this push for federal regulation could have far-reaching implications. It may set a precedent for how emerging industries are governed, influencing labor rights, business practices, and regulatory strategies across Africa.
