Drivers operating on Uber, Bolt, inDrive and other ride-hailing platforms under the Amalgamated Union of App-based Transporters of Nigeria (AUATON) have petitioned the Lagos State Attorney-General, Lawal Pedro (SAN), calling for the enforcement of a federal directive mandating digital transport companies to provide health insurance for drivers.
The petition, submitted to the Lagos State Ministry of Justice, accused ride-hailing operators of failing to provide adequate welfare protection for drivers despite what the union described as multiple deductions, including commissions, booking fees and service charges.
According to the union, drivers continue to work under unsafe and financially strained conditions without access to meaningful health insurance or broader social protection.
Drivers demand enforcement of NHIA Act
AUATON argued that the current arrangement contravenes the objectives of the National Health Insurance Authority (NHIA) Act 2022 and wider labour protection frameworks intended to safeguard workers in Nigeria’s growing digital economy.
The union called on the Lagos State government to investigate ride-hailing operations and ensure compliance with existing regulations governing the sector.
It also proposed that at least 2% of commissions earned by app-based transport companies be channelled into a jointly managed escrow account to fund driver welfare schemes.
The proposed structure would support initiatives including ILERA EKO health insurance coverage, pension contributions, and emergency welfare support for drivers.
Security concerns in e-hailing sector
Beyond welfare issues, AUATON raised concerns over rising insecurity within the ride-hailing industry.
The union said several drivers had been attacked, robbed or killed while on duty, while some passengers had also experienced security-related incidents involving drivers.
It is therefore demanding stricter safety measures across platforms, including mandatory National Identification Number linkage for drivers and riders, compulsory facial verification systems, and improved verification processes for all users.
AUATON said stronger security protocols would improve trust and help reduce criminal activity within the sector.
Drivers protest commission charges
The union also criticised the commission structure used by ride-hailing platforms, alleging that companies such as Uber and Bolt deduct between 27% and 38% of ride earnings.
AUATON claimed that after accounting for fuel, vehicle maintenance, taxes and other operating costs, many drivers are left with less than ₦3,000 in daily profit despite long working hours.
It argued that this financial pressure is contributing to fatigue-related accidents and worsening working conditions across the industry.
To address the issue, the union proposed either a maximum commission cap of 5% or a daily subscription model ranging from ₦500 to ₦1,000.
It also called for a transparent fare-setting system and greater inclusion of drivers in pricing decisions affecting the sector.
Call for regulatory intervention
The petition highlights growing tensions between ride-hailing operators and drivers within Nigeria’s app-based transport economy.
AUATON warned that without urgent regulatory intervention, the sector risks becoming increasingly exploitative and unsustainable for drivers.
The union added that peaceful protests and advocacy actions would continue until meaningful reforms are implemented to improve welfare, safety and operational standards across the industry.
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