Uber denies breaching Lagos data sharing deal after government threatens sanctions

The global ride-hailing company Uber has pushed back against a suggestion that it failed to honour a 2020 agreement to share data with the Lagos state government. That agreement mandates ride-hailing companies to share users’ trip information by giving the government backend access to real-time data.

“Immediate corrective action is imperative to rectify Uber’s non-compliance with the Data Sharing Agreement and API integration of the state,” said Oluwaseun Osiyemi, the Lagos state commissioner of transportation.

Citing security concerns, Osiyemi argued that having access to trip information was for the “well-being of all Lagos State residents.”

“In all markets that we operate in, and Nigeria is no exception, we are committed to being compliant with regulatory requirements,” an Uber spokesperson told TechCabal via email.

“We have met Lagos State’s regulatory obligations, including an annual fee, per-trip levy and data sharing requirements,” the same person said.

The 2020 agreement followed months of conversation between ride-hailing companies and the Lagos state government on the need for regulation. These regulations are not unique to Nigeria; in 2016, Uber disclosed that it shared the data of 11.6 million passengers and 600,000 drivers with state and local regulatory authorities. The company has previously argued that some of those data points were more than regulators needed to do their jobs.

But it often has little leeway when it comes up against governments. In 2020, it agreed, alongside other operators in Nigeria, to pay ₦25 million in annual license fees and ₦20 on each trip as a road improvement levy.

It was a better outcome than motorcycle-hailing startups like Gokada and ORide got, with new regulations banning commercial motorcycles under 200cc on highways, essentially wiping out an entire business segment.

For now, Uber will need to engage the Lagos state government, something it has adequate experience in.

“We have been a committed ride-hailing player in Nigeria for the past 8 years and are keen to continue raising the industry bar on mobility.”