LASG, bike-hailing firms on collision course after motorcycle ban

The ban placed on motorcycles and tricycles in 15 local councils in Lagos has pitted the bike-hailing companies against the state government, with the two parties differing on the propriety or otherwise of the restriction.

The Lagos State Security Council had, on January 27, announced restriction of movement of commercial motorcycles and tricycles in six local government areas (LGAs) and nine Local Council Development Areas (LCDAs) considered highly urbanised. The ban also includes 10 highways. Implementation of this order starts on February 1, but some commercial motorcyclists have stopped plying these routes for fear of being harassed by overzealous law enforcement agencies.

Speaking to BusinessDay on the controversy around the inclusion of corporate bike-hailing firms, Gboyega Akosile, chief press secretary to Lagos State governor, said O’Pay, Gokada, Max.ng and others were part of the restriction, insisting that the ban was without any exception.

According to Akosile, the state government had to take the decision to save lives of Lagosians exposed to dangers of riding on commercial motorcycles on highways and bridges.

“All motorcycles operating in the state are affected by the restrictions and expected to comply with the state traffic laws,” said Akosile.

Gbenga Omotosho, commissioner for information and strategy, had earlier cited ‘scary figures’ of fatal accidents recorded from operations of motorcycles and tricycles to justify the ban.

“The figures are scary. From 2016 to 2019, there were over 10,000 accidents recorded at the General Hospitals alone. This number excludes unreported cases and those recorded by other hospitals. The total number of deaths from reported cases is over 600 as at date,” said Omotosho.

The government directed security operatives to embark on a total enforcement of the state’s Transport Sector Reform Law of 2018 to immediately address the chaos and disorderliness created by ‘illegal’ operations of motorcycle and tricycle riders in the restricted areas.

But the announcement has drawn a battle line between bike-hailing firms that have invested heavily into the Lagos State transport system and the state government. According to the start-ups, restricting their motorcycles runs contrary to Section 15 of the Lagos State Transport Sector Reforms which makes exception to motorcycles with engine capacity above 200cc.

“We are quite shocked that the government has chosen to paint us as the informal operators,” Adetayo Bamiduro, co-founder/CEO, Metro Africa Xpress (Max.ng), said in Lagos on Wednesday on behalf of other operators.

“We are also fully compliant with the requirement of the law prohibiting the operation of motorcycles without rider and passenger helmets, carrying more than one passenger, comprehensive insurance, among others,” he said.

He stressed that Max had assembled a reputable array of international investors and partners, including Novastar Ventures, Alitheia Capital, Breakthrough Ventures, Yamaha and Mastercard, who had invested millions of dollars into the enterprise.

He said the group of bike-hailing firms would explore all lawful means to “seek redress of this injustice”.

Bamiduro told BusinessDay that the Lagos State government would not in any way deny that the bike-hailing firms had been meeting with them in the last six months over issues around regulations and compliance.

“We are also surprised that the government is not willing to tap into the wisdom, the exposure, and the intelligence that our combined companies have put together to resolve unemployment and traffic situation the state is going through,” he further said.

Damilare Ogunleye, policy lead at Max.ng, had earlier told BusinessDay that the company and its investors had invested $10 million so far into the business.

Victor Daminabo, Pilot Ops manager at Gokada, one of the bike-hailing firms, said the firm’s investors were deeply concerned and worried over the situation, having made huge investment in both Lagos and in Nigeria.

“We expect the government to tap into every opportunity to create jobs and not to destroy them,” Daminabo said. “They [investors] are also deeply worried about the general regulatory stability in Lagos and in Nigeria on whether they would continue to make investments in the state or whether the country is really ready for business. They are watching how this would play out.”

He further said the firms were ready for regulation and open for licencing from the government.