INSIGHT: Will the N800 levy for Lagos commercial drivers affect passengers? Here’s what to know

Three weeks ago, the Lagos government and transportation stakeholders in the state signed an agreement to harmonise dues collected from commercial motorists from February 1.

Representatives of the state, local government, and various unions in the transport sector were present at the signing of the agreement, themed ‘Consolidated Informal Transport Sector Levy’.

At the event, it was announced that commercial motorists would be required to pay a consolidated fee of N800 in their parks.

Once commercial drivers make this payment via tax cards at the point of loading, they would not have to repeat payment to other local councils en route to their destination.

According to the Lagos state government, this initiative aims to eradicate touting, encourage proper documentation of levies, among others.

WHO SHOULD PAY THE N800 LEVY?

The levy is an obligatory payment that all commercial drivers would be mandated to pay to the Lagos government. 

Nigeria’s Trade unions Act Cap 2004 defines commercial drivers to be: “All workers engaged in transportation of passengers and goods by road, excluding the transportation of petroleum by road and transportation undertaken by self employed persons.”

According to Rabiu Olowo, Lagos state commissioner for finance, the N800 would make up for all the local government levies and the fees for waste clearing at motor parks — which are paid to the ministry of transportation, Lagos State Waste Management Authority (LAWMA) and Lagos State Environmental Protection Agency (LASEPA), among others.

“The N800 is a single structured collection of the monies payable to all government agencies and parties who are directly or indirectly associated with the transport sector,” he said.

“What the government has done is to organise the collection and reduce the multiplicity of levies and all sorts of taxes, dues and monies due to government from the transport unions.”

TRANSPORT UNION FEES NOT INCLUDED 

Transport unions’ dues were not unified, and so it is expected that these unions would continue to collect ‘normal statutory dues’ at parks and bus stops as was practised before the consolidation. 

Musiliu Akinsanya, chairman of NURTW, Lagos chapter, popularly known as MC Oluomo, was quoted as saying the N800 levy would not include the national union fees paid by its members. 

Trade unions are organisations formed by workers from related fields that work for the common interest of their members.

In Part A, Schedule 3 of the Trade Unions Act, members of trade unions are allowed to voluntarily pay dues to their respective unions.

Two major transport unions registered as umbrella bodies for all transport workers in Lagos are the National Union of Road Transport Workers (NURTW)  and the Road Transport Employers Association of Nigeria (RTEAN).

The NURTW is listed in the Act as a trade union, while the RTEAN is listed under senior staff/employers’ associations.  

They are independent trade unions empowered by the law to steer the affairs of their members in Lagos and other Nigerian states.

As such, decisions regarding ‘consolidation’ or reviewing dues should be taken without necessarily any interference from the government. 

WILL TRANSPORT FARE BE HIKED? 

Reacting to the new harmonised fee, several Lagosians had expressed fears that it may result in a hike in transport fare, with some people taking to Twitter to voice their apprehension.

A Twitter user identified as Bman had said: “So transport fares are going up in February by N800 – N1000. Well done to everyone involved.”

In the same light, another Twitter user identified as M.S Muhammad said: “No one will ever challenge them in Lagos o, despite all the money this danfo owner pays to illegal tax collectors, the state government still add another fresh levy on them. It is time we speak out this corruption is too much.”

However, Gbenga Omotosho, Lagos commissioner for information and strategy, told TheCable that contrary to the presumptions, the fees would ease the burden of motorists and commuters.

He said motorists used to pay as much as N3000 daily before the harmonisation of the levies.

“If anybody says N800 is being added to what drivers are paying today, it is a misconception, a kind of cheat or pure ignorance,” Omotosho said. 

“This is because what the government is saying is that at every park, a driver pays money to LAWMA, LASEPA, ministry of transportation, and all sort of fees and that that will not be right for us to continue and that such levies have to be harmonised.”

ARBITRARY FARE HIKE ‘WOULD BE AN OFFENCE’

The commissioner said the Lagos government engaged in wide consultations with all the stakeholders in the transport sector before an agreement of N800 was reached. 

“Officials of National Union of Road Transport Workers (NURTW) and Road Transport Employers Association of Nigeria (RTEAN) were present,” he said. 

“They are very well-organised people. Once the leadership is aware of it, all the others are aware of it. 

“An average story is about drivers commenting and saying that if it is going to be well-implemented, they are all for it.” 

The commissioner said there is no reason for drivers to jack up fares, adding that it will be an offence to do so.

“If anybody wants to say because of all the stress and the pain that you have been going through – which will now end – you will visit pains and stress and on passengers, I do not see any logic in that,” he said. 

“The person will be committing an offence. The whole idea is to make drivers, passengers at peace. Let everybody have happy motoring.”