Nigeria’s general elections are fast approaching, and many private car owners in Abuja have taken to commercial driving to raise funds to meet their daily needs during the elections.
Amid the cash scarcity challenge in the country, some professionals who own private cars for their daily commutes have turned their cars into mini taxis, picking up passengers going in the same direction and charging them up to N300, depending on the location and destination.
These drivers are taking advantage of increased demand for transportation to earn additional income, especially in cash as the scarcity of naira continues to drag across the economy.
Although the use of private vehicles as commercial vehicles is not a new trend in Abuja, the Abuja Municipal Area Council (AMAC) frowns at it and has revenue collectors across town who arrest defaulters.
Private car owners are not supposed to turn commercial without being registered with AMAC and being regular with the purchase of daily driving tickets that cost N200 daily. The National Union of Road Transport Workers (NURTW) also arrests private car owners caught picking passengers without being registered and charges them a fine.
Despite the compliance risks involved, private car owners continue to engage in this practice. Many have identified three underlying factors that have pushed them to become commercial drivers.
More on this development: The scarcity of naira has become a significant issue for most Nigerians, including private car owners in Abuja. Given that there are long queues at ATMs, professionals who own private cars for their daily commutes do not have the time to join the ATM queues. So, they use what they have, their cars, to get what they want – cash. They do this by picking up passengers going in the same direction and collecting cash payments only.
Mrs Ekpenyong, a Ford Jeep owner, does a daily commute from Kubwa to Banex Plaza, Wuse. She picks up passengers going in her direction and charges them N200. She said:
- “I do this every day while going to work and when I’m on my way home. Passengers always have cash, and that is my target. I do not have the time to stand in ATM queues for hours.”
Mr Peter Onoh, who picks up passengers daily on his commute from Airport Road to the Federal Secretariat, said he only carries people who stay close to his estate.
- “I started doing this because of the forthcoming elections, so I can raise some cash to meet the needs of my household before election day,” he said.
Extra income for the household: Some private car owners engage in commercial driving to boost their salaries. According to Mr Okafor, a businessman who lives at Jikwoyi, the cash he raises from picking up passengers is mostly used for fuel and to save money for the purchase of enough food items before the elections on Saturday.
He charges N300 from Jikwoyi to Area 1 and the same when he is coming back home in the evenings. He carries an average of eight passengers in total daily.
Nairametrics gathered that some staff members of the Central Bank of Nigeria (CBN) have also been using their private cars to pick up passengers for extra cash.
A CBN staff member who spoke anonymously said that the general sentiment is that CBN staff do not have issues with accessing the naira. However, this is farthest from the truth, as they have to look for cash like other Nigerians. Therefore, picking up passengers on their way to work is one of the ways they survive.
What the passengers are saying: Some passengers reported that private car owners who engage in commercial driving are often insistent on cash payments, which affects mobility for some passengers. Mary Osime shared an unpleasant experience, stating that she approached a private car owner at the bus stop, pleading that she had no cash to pay N350, as she only had N200. The driver refused to let her enter despite her pleas.
However, another passenger at the bus stop, Rufus Babatunde, reported that AMAC agents caught a private car owner who had picked up passengers, including himself, and had collected money from them. The driver refused to refund the money, and they all had to walk away angrily. Rufus says he has resolved to only use commercial buses for his commute since then.
Underlying economic issues: The scarcity of cash challenge is a result of various factors, including the decline in oil prices and foreign exchange reserves, which have made it difficult for the Central Bank of Nigeria (CBN) to maintain the value of the naira. This has led to a shortage of foreign exchange, which has in turn made it difficult for businesses and individuals to access dollars to import goods and services.
The Nigerian government needs to implement policies that will diversify the economy, increase foreign exchange reserves, and promote investment in key sectors such as agriculture and manufacturing. This will help to address the underlying economic issues that have led to the Naira’s scarcity.
Urgent actions needed: There is no doubt that this is a short-term solution for private car owners to make ends meet. It is, therefore, imperative for the Nigerian government to address the underlying economic issues that have led to the naira’s scarcity.
Alternative sources of income: While waiting for the Nigerian government to address the underlying economic issues, individuals and businesses can explore alternative sources of income and adopt measures to conserve their resources. This includes reducing expenses, finding creative ways to generate income, and seeking financial advice to manage their resources effectively.
The engagement of private car owners in commercial driving highlights the need for individuals and businesses to be creative in generating income to meet their needs in the face of the scarcity of Naira. However, individuals must ensure that they engage in such activities within the ambit of the law.
