Nigerian Gig Drivers Call for Federal Regulation to Reshape Ride-Hailing Sector

Nigerian gig drivers, under the banner of the Amalgamated Union of App-Based Transport Workers of Nigeria (AUATWON), are intensifying their calls for federal regulation of the ride-hailing industry. They aim to address systemic challenges, including unfair compensation, excessive taxation, and poor working conditions, which have long plagued drivers in the gig economy.

Push for Better Pay and Working Conditions

The union’s demands echo their earlier calls for a 200% increase in ride fares, aimed at easing the financial pressures on drivers. Over the years, AUATWON has consistently lobbied for higher wages and reduced commission rates charged by ride-hailing platforms like Bolt and Uber, which remain resistant to change. Meeting these demands could significantly improve drivers' earnings and working conditions, aligning the sector with global best practices.

Addressing Regulatory Gaps

Unlike heavily regulated industries such as fintech, the ride-hailing sector in Nigeria operates with minimal oversight. Existing labour laws fail to adequately protect gig workers, leaving them without benefits like minimum wage guarantees or social protections. This contrasts with policies in countries like the United States, where some states mandate minimum wages and benefits for ride-hailing drivers.

AUATWON’s repeated calls for government involvement in 2024 highlight the urgent need for a regulatory framework tailored to the unique challenges of app-based transport workers.

Challenges of a Saturated Market

While ride-hailing initially promised earnings above the minimum wage, the influx of drivers in urban areas has created a saturated market. As competition intensifies, the shrinking customer base—driven by the high cost of ride-hailing services—has made it increasingly difficult for drivers to sustain their income.

Platforms like Bolt and Uber benefit from network effects, but the oversupply of drivers diminishes their earnings. Without intervention, this imbalance threatens the long-term viability of the gig economy.

Potential Shifts in Power Dynamics

If AUATWON succeeds in securing federal oversight, it could shift the power dynamics in favor of drivers. Historically, ride-hailing companies have leveraged their dominance to maintain favorable profit margins, often at the expense of driver welfare. A regulatory framework would compel platforms to negotiate fairer terms, ensuring sustainable working conditions while protecting the drivers' interests.

A Step Toward Equitable Growth

The gig economy in Nigeria is at a crossroads. While ride-hailing platforms have revolutionized urban mobility, they have also exposed the vulnerabilities of an unregulated market. AUATWON’s efforts represent a critical opportunity to create a fairer and more sustainable ride-hailing ecosystem—one that balances the needs of drivers, customers, and platforms. Federal regulation could be the key to unlocking this balance and securing the future of gig work in Nigeria.