POISED to make taxicab operations in Lagos State economically viable as well as deliver good service to its citizens, the state government on yesterday commenced issuance of provisional taxi licence allocation letter and badges to operators in the state.
The exercise, which was held at Adeyemi Bero auditorium, Alausa, Ikeja and witnessed by hundreds of taxi operators, was another attempt by the state government at making the megacity friendly for investors and tourists.
Elated by the event, Lagos State Commissioner for Transportation, Kayode Opeifa, said the issuance of the licence was an integral part of the integrated multimodal transportation system in the state and practical actualization of the Lagos new taxi system approved by the state executive in July 2012.
According to him, for a long time, there has not been appropriate regulations guiding taxi system in the state, resulting to loss of revenue for a lot of people in the over N27 billion industry in Lagos.
He said: “The state government has, however, in 2012, prescribed the way public transportation, especially the taxis, should be operated in the state.
Every body is a beneficiary. It is a provisional licence and within three months, they will get the main licence to be attached to their vehicles, copy of the drivers’ certificate will be pasted with their number tags along with the number plates
He said: “A survey showed that the taxi business is a N27 billion business in Lagos and nobody in that sector can boast of a Million naira.”
“ So with the new system, operators will be able to employ people, as the licence will serve as a collateral for loans, while the operators enjoy improved programmes like maintenance yards,” he added.
The licence, the commissioner said, is free for now but for a period of time, it will mature to be a valuable asset.
“For instance in New York city, the value of licence is between $900,000 to $1.2 million and asset that is close to a million dollars in Chicago, it is between $270,000 to $700,000, asset bought free or low, it is like a stock, when it appreciates in value following demand and supply equilibrium.”
Opeifa also said apart from the operators, consumers will feel more comfortable in terms of safety and better managed taxi system because the operators will be making a lot of revenue to put their taxis in order.
Dispelling insinuations of political undertones on the scheme, Opeifa said the process started in 2007, when the modern taxi system was conceptualized, snowballing into the road traffic law in 2012 but was delayed because of documentation and stakeholders’ meeting last year before the eventual kick-off.
The benefits of the new system, he said, is that the industry will become regulated, people will be more comfortable to use the taxi system, safety guaranteed and data based secured for taxi operators in Lagos.
“Many more people will now take taxis, more jobs will be created for the state, more investors will be brought into the system, it will be more vibrant, when that doubles, the economy of the state will get better and the state’s GDP will also double”, he stated.
He added: “We had 10, 000 taxi operators in circulation with 14,000 licence, they did not operate the same time with the new system, they don’t need to have more to be profitable.”
“Everybody is a beneficiary. It is a provisional licence and, within three months, they will get the main licence to be attached to their vehicles, copy of the drivers’ certificate will be pasted with their number tags along with the number plates. In all there will be improved service delivery, everybody is a winner- banks, hire purchase operator and better taxi operation without stress.”
“We are creating an industry that will be sustainable, developing into the BRT, Lagbus, Ferry system. Taxi system must be in operation before the rail system. The system must be operational to take people from their homes to the train stations, which will result to fewer vehicles on the road and better transport system in the state.”
For the executive chairman of Lagos State Modern Cab Operators Association, Adeboye Ajakaiye, the system will make the taxi industry more viable, robust and investment-friendly.
According to him, the new system was part of ideas tabled before the government after four years of operation in the industry, which could enhance the business and make it more profitable.
Also the president of the Lagos state taxi drivers association, Tajudeen Adetoro said the issuance of the licence has brought recognition to their business and will also enhance security of customers.
He said the system would also generate a new database for taxi operators in the state, which will enhance security of customers as well as serve as collateral for operators either to repair or acquire new purchases.
