Commercial Motorcycle Ban Aftermath: Nigeria may lose N400bn, 20m jobs



An economic working group, Nigeria Economic Security Agenda, NESA, has warned that Nigeria will lose N400 billon and 20 million jobs, if the Federal Government go ahead with its plan to ban commercial motorcycle commonly called okada and mining activities in the country.


Mr Ikenna Emewu, NESA Convener who addressed newsmen in Lagos made it known while reacting to an announcement broadcasted last Thursday by the Attorney General of the Federation and the Minister for Justice, Abubakar Malami, SAN, on the proposed ban, said: “Whereas we align with the government on the need to secure this country for the good of all of us, we, however, disagree with the proposed procedure which we believe would not serve the intended purpose for the reasons we have articulated below:


“These sectors embody very important economic activities which are prime to the stability of the country. No doubt, socio-economic security, and safety are the core of stability and it is only economic security that guarantees national security. In Nigeria, like in any other country, societies with higher unemployment have higher crime rates.”


“Motorcycle for instance, generates employment for millions of Nigerians who are helpless. These come through the value chain.


“Manufacturers: There are factory plants in Nigeria where motorcycles are assembled after they are imported in completely knocked down (CKD) mode. Some plastic ware factories also locally manufacture the rubber and plastic components of the motorcycles, using local rubber loaves from Cross River, Delta and Edo states. They employ many as 12,300 Nigerians and have also invested as much as N100 billion, some with foreign partners, and these places they have put into existence are not what the government should crush overnight.


“This ill-advised ban would further affect the agricultural sector that produces the rubber for the local factories. A good instance is a memorandum of understanding between the Innoson Motors and the Edo State government early this year on the supply of rubber loaves to the Innoson’s plastic wares factory in Enugu which makes plastic parts for the motorcycles he assembles.


“Dealers – there are over 500 Nigerians nationwide that import motorcycles with so many distributors. Between Nnewi, Lagos and Kano, there are at least 45,000 dealers or sellers of the spare parts, with each of them employing an average of 10 persons. They also provide employment for not less than 760,000 Nigerians who sustain their families through the business.


“Taxi operators – in all the states of Nigeria, there are at least 5.2 million citizens who operate okada. Banning bikes on a nationwide scale would have grave repercussions on the economy and the larger society, especially as the government can’t haveany ready alternative.


“Repairers and spare parts dealers – All over Nigeria are not less than 1,000,000. Cumulatively, the motorbike value chain provides jobs for over 20.2 million Nigerians directly and indirectly with an average investment and gross value of over N200 billion, inclusive of those that use it for courier dispatch services.


“We are rightly persuaded that the prime obligation of a government is the provision of the right environment for businesses and individuals to thrive, not the opposite.

 

On motorcycle and Nigerian security, challenge said, “We can’t situate or blame the insecurity in Nigeria on motorbikes. Yes, terrorists are reported to attack towns, villages, and facilities to attack targets on motorbikes. But these are not beyond our security system to confront just because they come on motorbikes? What is the assurance that if they don’t have access to a motorbike, they won’t devise alternatives, since they operate unchallenged most times?


“Viewed critically, how could it be justified that a horde of bike-riding criminals travel 10s of kilometers to attack targets, abduct captives, and vanish like in a magic movie? It is quite unthinkable that the security system can’t detect or stop such movement and instead plans a ban on what affords Nigerians a living.


“So, using that as justification is like the government punishing us the helpless citizens whose businesses depend on motorbikes as scapegoats for their own failings.”

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