•••Soaring Costs and Economic Pressures Force Operators to Seek Alternatives
The rising cost of living in Nigeria has driven up prices across various sectors, with transportation being one of the hardest hit. The once-affordable commercial tricycles, widely known as Keke Marwa, and motorcycles, commonly referred to as Okada, have become increasingly expensive, posing significant challenges for operators who rely on them for their livelihoods.
According to Tribune Newspaper, Originally introduced between 1996 and 1999 under the administration of former military governor Mohammed Buba Marwa, Keke Marwa has served as a vital source of income for many low-income earners. However, the current economic climate has seen the price of a new Keke Marwa soar to N3.5 million for an outright purchase, with hire purchase agreements costing as much as N6 million. Just five years ago, these prices were significantly lower, with hire purchases around N1 million and outright purchases at N600,000.
The situation is similarly dire for Okada riders, with prices for motorcycles climbing from approximately N950,000 to N2 million. These financial strains, combined with the escalating costs of petrol and vehicle maintenance, have driven about 45.8% of operators out of the business, leaving them to seek alternative means of income.
In Ibadan, Oyo State, many Keke operators are selling their vehicles due to unsustainable maintenance costs. Abiola Adesina, a local operator, shared his experience, noting that five years ago, he acquired a Keke Marwa for N1 million through hire purchase. Today, the same vehicle costs between N5 million and N5.5 million, with the direct purchase price having jumped from N600,000 to N3.5 million in just three years.
Adesina highlighted additional financial burdens, including skyrocketing registration fees, government levies, and union dues. “If you add all these together plus N10,000 daily delivery as applicable to the operators who got their tricycles on hire purchase, it will be difficult to make ends meet,” he explained.
The economic crunch has also led to a noticeable decline in passenger numbers, with many now opting to walk part of their journey to save on fares. This drop in patronage further exacerbates the operators’ struggles. “The number of Keke queuing for passengers is a testament to the fact that all is not well with us as Keke operators,” Adesina lamented.
Abiodun Akinola, another Keke operator, echoed these sentiments, stating that the current economic situation makes survival difficult. He emphasized the impact of rising petrol prices on daily operations, forcing fare increases that passengers are often unable or unwilling to pay. “Today, you can count the number of Keke on our roads. Many operators have disposed of their Keke because they could no longer afford the cost of maintenance,” he said.
The plight of Okada riders mirrors that of Keke operators. Lukman Yusuf, an Okada rider, reported that the cost of acquiring a motorcycle through direct sale or hire purchase has reached N1.4 million and N2 million, respectively. He noted the financial burden of installment payments amidst a backdrop of reduced passenger traffic, as many people limit their movements to essentials only.
The current economic challenges facing Keke and Okada operators underscore the need for government intervention. Operators are calling for a review of taxes on the importation of tricycles and motorcycles and for measures to alleviate their financial burdens. As Oloye Opeyemi, another operator, expressed, “The prevailing economic situation has taught us a great lesson. We are alive but economically dead. Government at all levels should be sensitive to our plights.”
The escalating costs and reduced demand have put these transport operators in a precarious position, highlighting the broader economic challenges facing Nigeria’s low-income earners. Without significant policy changes, many fear that the situation will continue to deteriorate, further squeezing those who depend on these vehicles for their livelihoods.
