Economic Implications Of Okada Restriction

Willoughby Street on Ebute-Meta, Lagos State, southwest Nigeria, used to be a busy place of business for motorcycle dealers. The street was popular for buyers and sellers of motorcycles, both new and fairly used. One could with little effort buy spare parts too.

That was before the enactment of the Lagos Traffic Law and its enforcement. These days, the place has become a shadow of the once booming okada centre. The once-vibrant street has been deserted by the buyers.

Willoughby street could be said to have been negatively affected by the Lagos State government’s restriction of the operations of commercial motorcycles on some major roads. The decline in economic activities has been so enormous that car spare parts dealers are gradually replacing the okada dealers.

In Agege, on old Ipaja Road, the story is not different. The fear that okada riders may lose their source of livelihood is a smaller picture of the economic implications of the ban. The Motorcycle Manufacturers Association of Nigeria, MOMAN,  revealed to P.M.NEWS Metro that motorcycles manufacturers are preparing to sack 60 per cent of their production work force. Their reason is obvious: because there is no market for the products they assemble, they cannot keep their workers and fail to pay them salaries.

Motorcycles manufacturers like Boulos, Bajaj and Honda have assembling plants in Nigeria and these plants will either be moved to other states or out of the country. P.M.NEWS Metro learnt that dealers like, Degab Commercial Stores Ltd, dealers in motorcycles and spare parts have also been hit by the ban. They have turned their attention to tricycles popularly known as Keke Marwa of Keke NAPEP in local parlance.

Although they still get buyers from outside Lagos State, who come to buy motorcycles for commercial or private use, but they no longer not sell in large quantities as it used to be before the restriction. The manufacturers, dealers and agents have therefore sought alternatives, with many of them relocating to Ogun State to continue their business.

While manufacturers and dealers have a difficult time finding new prospects for their businesses, okada repairers have had a rather smooth transition. Most okada mechanics now repair generators. Abbey Adewale, a mechanic that repairs both motorcycles and generators said they found it easy to switch to generators because the elements of  both  motorcycles and generators are similar.

“The components of both motorcycle and generator are almost the same. This has made it very easy for some of us to switch to generator repairs. The restriction has not really affected my business,” he explained.

When commercial motorcycle business boomed in Lagos State, many artisans left their jobs to become okada riders but many of them have since gone back to their vocations. Residents of Agege, Iyana-Ipaja, Ikeja and Oshodi told P.M.NEWS Metro that artisans have become more available, although they cannot tell if the restriction has been the reason for the trend. Khadijat Alimi, a trader at Iyana-Ipaja said that carpenters are now available. “We used to look for artisans and beg them before but now they are more readily available to work. I do not know if the restriction has had any effect on this turnaround but it is good,” she said.

Also affected by the okada restriction are food vendors and sellers of paraga, a local preparation of roots marinated in alcohol. Street kitchens, petty traders and food vendors who do business mainly with okada riders are lamenting the restriction on their business partners. They claimed that the volume of food they cook for sale has reduced because of the new Lagos Traffic Law. Beauty, a food seller in Ogba, said the restriction has affected her business. “I do not make enough profit anymore. Before the restriction, I sit here and okada men come and eat, but now I pray daily for customers to come,” she complained.

Paraga sellers are perhaps the most hit by the ban because okada riders are known to consume a lot of alcohol daily. They often stink of booze while riding their motorcycles and have been to cause of many accidents because of their liquor in-take and resultant recklessness. Around Agege, okada riders sit down in their numbers consuming the deadly paraga. A paraga seller said she is considering relocating her business due to low patronage. “In the evening, some of my customers come to drink but most of them do not patronise me anymore and it is because of the restriction. Many of them have left Agege for other places where they can do business.”

Conoil Plc cashed in on the okada boom by launching a brand of lubricant for motorcycles and tricycles called, Okada Golden Super Motor Oil. Months after the restriction on motorcycles, P.M.NEWS Metro visited several Conoil petrol stations. Attendants who spoke to us claimed that the restriction did not affect the success of the product. An attendant at one of the stations in Ikeja said the product consumption fluctuated but has not been below par.

The Director General of MOMAN is optimistic that the government can still reconsider the restriction on motorcycles. He explained that most of the problems the government accused motorcycle riders of causing were created by illegal okada riders.

“MOMAN understands the position of government but we hope that we can fashion out a new agreement. We will register our riders again and make sure that they abide by the laws that govern the state,” he said.

He fears that unemployment in the motorcycle industry will escalate if manufacturers go ahead and sack 60 per cent of their work force. “I have been pleading with motorcycle manufacturers not to sack their workers in the production line because we understand the economic crunch but how long can they keep redundant workers? That is my fear,” he stated.

By Seun Bisuga