Navigating the process to legally operate a taxi in Nigeria is crucial for any driver or fleet owner. Operating without the proper licence can lead to heavy fines, vehicle impoundment, and legal issues with state authorities.
This comprehensive guide provides clear, step-by-step instructions tailored for the Nigerian context.
Requirements / What You Need
Before you visit any government office, gather these essential documents and information. Having them ready will save you multiple trips and avoid delays.
- Valid Driver’s Licence: Your Class D (Commercial) driver’s licence from the FRSC. This is non-negotiable.
- Vehicle Particulars: Original and photocopies of your vehicle’s Certificate of Roadworthiness, Insurance (Third Party or Comprehensive), and Proof of Ownership.
- Tax Identification Number (TIN): Obtain this from the Federal Inland Revenue Service (FIRS). Many applicants forget this crucial step.
- Local Government Area (LGA) Papers: A business premise permit or a letter of introduction from your LGA, confirming your operation base.
- Passport Photographs: Typically 4-6 recent, white-background passport photos.
- Application Fee: Budget between ₦15,000 to ₦35,000 depending on your state. This covers the application form and processing.
Pro Tip: Visit a reliable cyber café to make multiple, clear photocopies and scan soft copies. Use your phone to take pictures of every document submitted, as office files can be misplaced. Always ask for an official receipt for every payment made.
Step-by-Step Process
Step 1: Visit the Relevant State Authority
First, identify the correct government office. In most states, this is the **Ministry of Transport** or the **Department of Public Transport**. In Lagos, it’s the Lagos State Ministry of Transportation (MOT). Go to the office early, around 8:30 AM, to beat the crowd. Ask specifically for the “Commercial Vehicle Licensing” or “Taxi Permit” desk. Be prepared for a possible long wait; carry a file containing all your documents and a pen.
Step 2: Obtain and Complete the Application Form
Request the official application form for a taxi licence or hackney permit. The cost is usually between ₦2,000 – ₦5,000. Fill the form meticulously in block letters. A common mistake is mismatching information with your other documents (e.g., a different spelling of your name). Double-check that every detail aligns perfectly with your driver’s licence and vehicle papers. If unsure, ask an officer for clarification to avoid rejection.
Step 3: Submit Documents and Pay Official Fees
Submit the completed form alongside the file of your required documents. An officer will vet them. If approved, you will be given an official payment invoice (not a personal account). Pay the fee at the designated bank within the premises or a specified commercial bank. **Crucially, return the bank teller to the office immediately** to get it stamped and logged. Do not leave it for the next day, as your file may be buried.
Step 4: Vehicle Inspection and Branding
Your vehicle will be scheduled for a physical inspection at a government-approved center or yard. They will check roadworthiness, meter/taximeter (if required), and overall condition. **You must apply the approved taxi color scheme and branding (like the Lagos yellow stripe)** before this inspection. Using the wrong shade or design will cause a fail. After passing, you get an inspection report.
Step 5: Collect Your Licence and Plate
With the payment confirmation and inspection report, your application is finalized. Processing can take 2 to 6 weeks due to bureaucratic delays. Follow up politely every week. Once ready, you will collect your official **Taxi Licence badge** and a government-issued numbered plate for your vehicle. Verify all details on the licence are correct before leaving the office.
Alternative Methods
While the physical process is standard, you have alternative routes depending on your state and resources.
For a fully online application, check if your state’s transport ministry has a functional portal. Lagos State, for example, has integrated some services on the Lagos State Government portal. This method is better if you have stable internet and can navigate digital payments. However, be prepared for portal glitches; always print your payment receipt and application reference number.
Another common alternative is applying through an accredited driving school or transport association. Schools like the Lagos State Driving Institute (LASDRI) often offer licence processing as a package for new commercial drivers. Transport unions (like NURTW branches) also assist members for a small service fee. This option is far better if you want to avoid bureaucracy and long queues, as these intermediaries know the system intimately.
Finally, some states mandate applying through licensed taxi-hailing companies if you intend to work with platforms like Bolt or Uber. They handle the bulk of the government liaison for their verified drivers, though you must meet their specific vehicle and background check requirements.
Common Problems and Solutions
Problem: Government Portal is Down or Unresponsive
You may spend hours trying to access a state’s online application portal only to find it under maintenance or not loading. This is a frequent frustration.
Solution: Do not wait indefinitely. First, call the ministry’s contact line if available. If the portal is down for more than two days, revert to the physical application process. Visit the office directly with your documents. Always have a plan B that does not rely solely on digital platforms.
Problem: Name or Detail Mismatch on Documents
Your driver’s licence may read “Adebayo T. Samuel,” while your TIN certificate says “Samuel Adebayo Taiwo.” Such discrepancies, common with multiple middle names, will cause immediate rejection.
Solution: Before applying, lay all your IDs side-by-side. If you find mismatches, first harmonize them at the issuing agencies (FRSC for driver’s licence, FIRS for TIN). It is easier to correct one document beforehand than to explain at the transport ministry.
Problem: “Come Back Next Week” – Endless Delay Tactics
Officials may repeatedly tell you your file is “with the director” or to return after several days, causing weeks of delay without clear reasons.
Solution: Politely but firmly ask for a specific officer’s name or a desk to follow up with. Document every visit with dates. Often, returning consistently and early in the morning shows persistence. In some cases, being accompanied by a member of a recognized transport union can expedite the process.
Problem: Failing Vehicle Inspection for Minor Reasons
Your car may be rejected for reasons like the exact shade of the taxi color, a slightly cracked tail light, or an “unclean” interior, even with a valid Roadworthiness Certificate.
Solution: Before inspection, visit the inspection yard beforehand to observe the exact requirements. Speak to drivers who recently passed. Ensure your car is immaculate, and the taxi branding is done by a painter familiar with the state’s specifications, not just any roadside sign writer.
Fees, Costs and Timeline
Budgeting accurately is key. The total official cost for a taxi licence in states like Lagos, Abuja, or Rivers typically ranges from ₦25,000 to ₦50,000. This covers the application form (₦2,000-₦5,000), the licence fee itself (₦15,000-₦30,000), and the mandatory vehicle inspection fee (₦5,000-₦10,000). Note that these figures vary by state.
Be wary of unofficial “processing” or “expedite” fees. Some officers or agents may quote amounts as high as ₦80,000. Always insist on paying only into official government bank accounts and collect a stamped receipt for every payment. If an agent is involved, agree on a fixed service fee (e.g., ₦10,000) upfront, separate from the official government fees.
The entire process, from application to collection, can take 4 to 8 weeks under normal circumstances. Delays during festive periods or due to documentation errors can extend this to 3 months. Factor this timeline into your business plans.
Warnings and Scams to Avoid
Protect yourself and your money by being aware of these common pitfalls.
- Fake Online Portals and Agents: Scammers create fake websites mimicking state government portals to collect payments. Always verify the web address (it should end with .gov.ng) and never make payments on sites without this official domain.
- WhatsApp/Phone Call “Expeditors”: You may receive calls or messages from individuals claiming to be ministry officials who can “fast-track” your licence for a fee paid via mobile transfer. No genuine officer will demand payment to a personal bank account or mobile wallet.
- Overpriced “All-in-One” Agents: While some agents are legitimate, many inflate costs. An agent quoting above ₦80,000 for the entire process is likely overcharging. Get a breakdown of official vs. service fees in writing.
- Fake Licence Badges and Stickers: Only collect your physical licence and plates from the ministry office. Do not buy badges from roadside vendors or online marketplaces, as they are illegal and will lead to arrest.
Acceptance, Use and Next Steps
Your official taxi licence is primarily valid within the state where it was issued. For example, a licence obtained in Lagos State is recognized for operations throughout Lagos, but if you wish to operate commercially in Ogun or Abuja, you must check with those states’ transport authorities for reciprocity or a separate registration process.
Once you have your licence badge and plate, your next critical step is to register with a recognized transport union or cooperative in your operating area, such as the National Union of Road Transport Workers (NURTW). This provides a layer of protection and access to ranks. You should also immediately display the licence badge on your dashboard and fix the official plate as instructed.
Remember, this licence does not automatically grant you access to ride-hailing apps like Bolt or Uber. You must apply separately through their platforms, which have their own vehicle inspection, documentation, and onboarding processes. Keep your licence renewed annually as required by your state law to avoid penalties.
Frequently Asked Questions
Can I use my private car for taxi business with this licence?
No, you cannot. To operate legally as a taxi, your vehicle must be registered for commercial use with the appropriate commercial vehicle insurance and have the state-approved taxi colour scheme and branding. Using a privately registered car (with private number plates) for commercial pick-ups is illegal and can lead to severe fines.
How long is a taxi licence valid in Nigeria?
A taxi licence is typically valid for one year from the date of issue. You must renew it annually by paying a renewal fee to your state’s Ministry of Transport and presenting a current Certificate of Roadworthiness. Operating with an expired licence carries the same penalties as having no licence at all.
What is the difference between a taxi licence and a driver’s licence?
Your Class D driver’s licence from the FRSC proves you are qualified to drive a commercial vehicle. The taxi licence (or hackney permit) is a separate document from the state government that authorizes that specific vehicle to be used as a taxi for hire. You need both to operate legally.
Can I process the licence in a state where I am not a resident?
Yes, but it is more complex. You will typically need a proof of address within that state, which can be a utility bill or a lease agreement. Some states may also require a letter of introduction from your local government area. It’s advisable to confirm the specific requirements with the transport authority of that state first.
What happens if I am caught driving a taxi without a licence?
Penalties are severe and include a heavy fine (often upwards of ₦50,000), impoundment of your vehicle, and possible prosecution. In states like Lagos, your vehicle may be taken to an enforcement yard, requiring you to pay hefty demurrage fees in addition to the fine to retrieve it.
Do I need a taxi licence to drive for Bolt or Uber?
Yes, absolutely. While Bolt and Uber have their own requirements, the state-issued taxi licence is a fundamental legal mandate. The ride-hailing companies will require you to upload a valid copy during onboarding. Driving for them does not exempt you from obtaining this government authorization.
Disclaimer
This guide is for informational purposes based on general procedures and publicly available information. Transport regulations, fees, and processes can vary by state and are subject to change by the relevant government authorities. Always verify the latest requirements directly with your state’s Ministry of Transport or Department of Public Transport for the most accurate and current official information before proceeding.