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Few days ago, the Lagos State Government announced a ban on the operations of commercial motorcycles popularly called Okada and tricycles popularly called Keke Napep preventing them from plying certain routes within the state. The ban comes as the state begins total enforcement of the Transport Sector Reform Law of 2018. The ban includes motorcycle hailing tech ventures such as Oride, Gokada, Max.ng etc.

We recall last year, many of the motorcycle hailing companies had brawls with motorcycle operators within the country, requiring them to pay daily fees to them in order to operate in different routes.

The state government stepped in and required them to pay N25 million per annum as license fees to operate within the state, albeit still being negotiated downwards. In our view, the decision to ban them from accessing several major routes in less than a year after reaching an agreement appears out of place. We struggle to see how these motorcycle hailing firms would take this in their stride given the significant impact it would have on their revenues.

Lagos State bans Gokada, ORide, MaxNG, others from 15 local governments 

In fairness to the state government, it stated some of the reasons that informed the decision to enforce the ban. Between 2016 and 2019, over 10,000 motorcycle and tricycle accidents have been recorded in general hospitals within Lagos while over 600 deaths have also been recorded.

Furthermore, Lagos is becoming increasingly unsafe for its citizens due to the increasing rate of robbery perpetrated mainly by robbers using motorcycles to aid quick escape from robbery scenes. We also note that motorcycle and tricycle drivers contribute significantly to the notorious traffic situation in Lagos as many of them do not get any formal training and as such do not understand traffic signs and rules.

In our view, the decision to include registered operators like Gokada was not well thought out given the huge licensing fees they are required to pay and their relatively high cost of operations. We recall many of these companies raised significant capital to fund their operations last year in a bid to expand capacity and cover more areas within the state following the agreement they reached with the government on license fees. This policy instability and constant breach of agreements on the part of the government may continue to discourage the flow of FDIs into the country.

[READ MORE: Banking: Surprise hike in CRR-Implications for banks)

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Furthermore, we note that many Lagosians are highly dependent on these banned means of transport within the state. Given that transport infrastructure remains decrepit and alternatives are yet to be created, the government should have held off the ban for now. Again, this lends credence to Nigeria’s history of “banning before providing alternatives”.

Whilst we agree totally that the banned mode of transportation remains unsafe, the absence of alternatives will make movement difficult for the average Nigerian.

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CSL STOCKBROKERS LIMITED CSL Stockbrokers,

Member of the Nigerian Stock Exchange,

First City Plaza, 44 Marina,

PO Box 9117,

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Lagos State,

NIGERIA.

 

8 COMMENTS

  1. Furthermore, we note that many Lagosians are highly dependent on these banned means of transport within the state. Given that transport infrastructure remains decrepit and alternatives are yet to be created, the government should have held off the ban for now. Again, this lends credence to Nigeria’s history of “banning before providing alternatives”.

    BINGO! BINGO!! BINGO!!!

  2. “Furthermore, Lagos is becoming increasingly unsafe for its citizens due to the increasing rate of robbery perpetrated mainly by robbers using motorcycles to aid quick escape from robbery scenes.”

    There will be a geometric increase in robbery when you barn motorcycles. What is statistics of employed motorcycles riders . Compared with with robbers using motorcycles to aid quick escape robbery scenes. This judgement is out of “GREED”….

  3. Seen a lot a bike accidents recently on that Iyana Ipaja- Mangoro- Ikeja Along axis, the latest being this morning near Mangoro where about 4 fully boarded bikes were affected. This was at about 7:50am this morning, and all affected commuters were heading to their respective places of work. One lady, facially disfigured, while others were seriously wounded.

    Even though i often patronize the services, i am inclined by what I have seen recently, to agree partially to the ban. The regulated/ branded Opay and Gokada should not be included. The government cannot (or should not) eat its cake and have it. Their riders do have a better sense of safety and decorum on the roads. Moreso, the traffic situation creates the need to have them.

    Exclude the regulated/branded commercial bike riders, and this reasonably works.

  4. Accident is a natural thing. Nobody in Lagos state, can truthfully say he has never patronized okada or keke riders especially in a moment of urgency. What will be will be and what will not be, will not be. To enforce this ban, a lot of people will also die, considering the cruel understanding of the so called half baked or even not baked law enforcement agents. Nigerian Government is a unique one indeed and the citizens are equally unique.

  5. Well I think before enforcing such law in a country like this, the govt. Should have preinformed the company, renew not their liecence to operate, make alternative b4 implementing such. Now you know how many graduate have been laid off? Please let the govt think of the positive and negative effect b4 implementing any law cus you are there to serve and not to role

  6. From my own little knowledge, I believe there should have been an alternative plan even though the Govt wants to regulate the transport system of the state. I don’t understand the system we are actually running in this country, if we claim to be running a democratic system of govt then the Govt should always consider pepeople’s opinion before implementing or taking any drastic action. Being a leader is a call to serve and not call to oppress, intimidate or dictate! It’s only Nigeria you see leaders in position using their office do and undo…they should remember that when you push people to the wall they would definitely revolt. We shouldn’t wait till that time before we start getting it right.

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