The Amalgamated Union of App-Based Transporters of Nigeria (AUATON) has called on the federal government and state governors to introduce economic relief measures and regulate pricing practices in the e-hailing industry, citing rising operating costs and declining earnings among drivers.
The union urged the government to establish a dedicated welfare framework for app-based transport workers, including access to affordable vehicle financing, health insurance, pension contributions and fuel-related support.
The Lagos State chapter of AUATON made the demands in an open letter to President Bola Tinubu and the 36 state governors, following the Federal Government’s approval of a N70,000 monthly transport allowance for public servants for six months, beginning in November 2026.
In the letter signed by Jaiyesimi Azeez Olalabi, also known as Makavelli, Lagos state chairman of AUATON, the union argued that e-hailing drivers, who provide daily transportation services and bear the costs of vehicle maintenance, fuel, insurance and repairs, should also benefit from targeted government interventions.
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“What happens to the Nigerian e-hailing driver who provides transportation services to the public every day, pays for fuel, maintains a vehicle, bears the cost of repairs, pays insurance and other statutory charges, and struggles to feed a family under the same harsh economic conditions?”
It said drivers faced similar cost-of-living pressures as other workers but remained largely excluded from welfare interventions, despite their contribution to urban mobility and economic activities.
“A driver cannot eat revenue that has already been consumed by fuel, platform deductions, repairs, loan repayments and other operating expenses,” the union stated.
AUATON also raised concerns about the relationship between drivers and digital transport platforms, arguing that drivers bear the financial risks of operating vehicles while platform companies retain significant control over trip allocation, fare calculations, commissions and access to customers.
The drivers called for a regulatory framework to ensure transparency in platform charges, protect drivers’ earnings and provide opportunities for recognised driver representatives to participate in decisions affecting their income.
The union specifically criticised passenger-led fare negotiations on inDrive, saying the absence of adequate safeguards against underpricing could force drivers to accept trips that do not cover their operating expenses.
“When passengers are allowed to push fares below economically viable levels, drivers are placed in a difficult position: accept a poorly priced trip or reject it and risk losing income and opportunities.
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“A fare that does not cover the cost of providing a service is not a fair bargain; it transfers the economic burden from the customer and platform to the driver,” the union stated.
AUATON urged the Federal Competition and Consumer Protection Commission (FCCPC) and relevant state authorities to investigate pricing practices in the sector and establish enforceable standards that protect both drivers and passengers.
Among its demands are transparent fare-setting rules reflecting prevailing operating costs, disclosure of platform commissions and deductions, safeguards against unsustainable pricing and an effective dispute-resolution mechanism for drivers facing account deactivation or payment-related disputes.
They also called on inDrive to review its pricing model and engage with AUATON and other recognised driver representatives.
To address the financial pressures facing operators, AUATON proposed an e-hailing driver economic relief fund, affordable vehicle ownership and lease-to-own programmes, fuel support schemes and access to social protection.
“These are not demands for charity. They are proposals for a more productive, safer and economically sustainable transportation sector,” the union stated.
It further urged state governments, particularly Lagos and other states with significant e-hailing operations, to convene meetings involving transport regulators, platform operators and driver representatives to develop practical welfare and regulatory measures.
The union said a coordinated national framework was necessary to ensure that drivers received consistent protection across the federation.
They called for an urgent meeting with relevant government agencies and a clear implementation timeline for proposed interventions, arguing that the sustainability of Nigeria’s e-hailing industry depended on improving the economic conditions of the drivers who operate it.
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Juliet Onyema is a transport journalist who reports on Nigeria’s transport and automobile industry. She covers emerging Electric Vehicles (EVs), ranging from adoption to usage, automobile firms and transport policies which affect them, and also recurring trends affecting commuters’ mobility interstate and intrastate.
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