Nigeria’s app-based transport drivers are pushing for change, with the Amalgamated Union of App-based Transporters of Nigeria (AUATON) calling for federal regulation of the ride-hailing sector.
The union’s formation comes years after growing tensions in the industry, notably marked by Uber’s controversial 2017 decision to slash Lagos fares by 40%—a move aimed at expanding market reach but implemented without driver consultation. That same year, Abuja drivers staged strikes amid mounting concerns over driver safety, including reported robberies, and disputes over earnings.
AUATON’s founding secretary, Ibrahim Ayoade explained that the need for collective representation became clear after they realized drivers had no say in crucial decisions affecting their livelihoods. The union, established in 2023, aims to address the longstanding power imbalance between drivers and ride-hailing platforms, advocating for better working conditions and driver protection across Nigeria’s growing app-based transportation sector.
The path to establishing AUATON was fraught with legal challenges. Ride-hailing giants Uber and Bolt actively opposed the union’s registration, specifically contesting the classification of drivers as “workers” rather than their preferred designation of “independent contractors.” This classification battle, central to gig economy debates worldwide, was finally resolved in the drivers’ favor when the federal government officially approved AUATON’s formation in 2023.
Today, AUATON serves as the collective voice for drivers across multiple platforms including Uber, Bolt, InDrive, and other app-based transport services. However, as 2025 unfolds, the industry finds itself cycling through familiar territory, a pattern all too common in Nigeria’s regulatory landscape. The same issues that sparked the union’s formation—driver classification, fair compensation, and working conditions—have resurfaced, highlighting the persistent challenges in Nigeria’s evolving gig economy sector.
Speaking to the News Agency of Nigeria (NAN) in Lagos on Sunday, AUATON South-West Vice-President, Mr. Kolawole Aina, highlighted the urgent need for a unified national policy. He criticized the fragmented approach, where 15 to 17 states impose separate regulations, leading to issues like multiple taxation and uneven cost distribution.
“So, we as a national union are looking at a national or a federal regulatory framework that will center around all the stakeholders,” he said. “It is only the drivers that think about how the states and app companies are going to make money, and at the end of it, the drivers and riders bear all the burden.”
In 2024, AUATON convened a crucial conference to address the pressing need for a national regulatory framework in Nigeria’s ride-hailing sector.
“One of the challenges we face is that we have not found government approachable to listen to our demands. We are taxpayers and contribute to the economy, so we need to be listened to,” Mr. Aina emphasized, highlighting the disconnect between drivers’ economic impact and their political influence.
The union’s push for federal oversight stems from the fragmented regulatory landscape. Nigeria’s federal structure, while granting states autonomy over local affairs, has created inconsistent levies that burden drivers operating across state lines. Many are subject to double or triple taxation, juggling various state-imposed fees while surrendering substantial portions of their earnings to ride-hailing platforms.
This financial squeeze has triggered a noticeable shift in driver behavior, particularly in Lagos, where many are migrating to InDrive, seeking refuge from Bolt’s higher commission rates. This underscores a broader crisis: as platform fees and multiple taxation erode drivers’ earnings, they face mounting economic pressure in an already challenging Nigerian economy.
Usually, the discourse around safety in Nigeria’s ride-hailing sector often spotlights rider security, particularly regarding driver misconduct. However, drivers themselves face significant security risks with minimal protection from either platform companies or government authorities. Unlike drivers who undergo rigorous background checks, passengers can access ride-hailing services with minimal verification, creating a dynamic that leaves drivers vulnerable. Aina explained that a comprehensive national framework wouldn’t just solve the taxation challenges but create a safer, more equitable environment for everyone, both drivers and passengers.
The union’s push for federal oversight thus represents more than a bid for financial fairness; it’s a reform call that addresses the multifaceted challenges facing Nigeria’s ride-hailing sector, from safety concerns to economic sustainability. AUATON’s advocacy represents a pivotal moment for Nigeria’s ride-hailing sector, whose significance extends far beyond driver interests. In a country grappling with high unemployment, e-hailing platforms have emerged as vital sources of income for thousands of Nigerians.
The union’s proposed reforms promise benefits across the board. Enhanced safety measures would protect both drivers and riders, while a streamlined taxation system could help stabilize pricing. Currently, InDrive users often face inflated fares, particularly at night. This practice is driven by drivers attempting to offset rising fuel costs and diminishing profits. A more balanced regulatory framework could help normalize pricing practices while ensuring driver sustainability.
The sector’s evolution in Nigeria tells a story of rapid growth and persistent challenges. From Uber’s Lagos debut in July 2014 to Bolt’s (formerly Taxify) arrival two years later, and InDrive’s recent 2023 entry with its innovative bidding system, the industry has transformed urban transportation. Yet nearly a decade later, fundamental issues remain unresolved.
While the government’s response to AUATON’s appeal remains pending, the stakes are clear: a well-regulated ride-hailing sector could mean more drivers on the road, shorter wait times for passengers, and a more stable transportation ecosystem for Nigeria’s growing urban population. For now, the industry watches and waits, hoping this push for reform finally brings lasting change to a sector that has become integral to Nigerian urban life.
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