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Venturing into Tricycle Transportation Business in Nigeria

As the population of Nigeria keeps increasing day by day, the need to move people from one place to the other is also on the rise. The transportation measures taken by governments don’t seem to contain the lapses. Evidence of insufficient transport means abound at the bus stops and rail stations. For instance, it is very common to spot people hanging on Train, commercial buses etc, in Lagos state.

Those who do it don’t find fun in risking their lives, the need to get home is suppressing the danger of hanging on a vehicle. The truth is, Nigerian government does not have what it takes to upset the deficit in the transportation system. Many administrations have tried one way or the other to contain the situation.

For instance, when the Lagos state government kicked off BRT in 2008, people in Lagos thought solution to their transport woes has finally been found. But that measure only reduced the negative impact of poor transport system to a little degree. Mostly so because, the BRT buses cover only major areas of Lagos, mainly- Mainland – Island routes.

The questions therefore are: What about those whose businesses take to places not close to the BRT routes? Will they rely on privately owned commercial vehicles to get to their destination? The answers to these questions are yes. Since poverty and the traffic situation is not encouraging many to get their own ride, a lot of people depend on Privately operated commercial vehicles to move from one street to the other.

The Evolution of Keke Napep

President Olusegun Obasanjo introduced Keke Napep on Nov 6, 2002, as part of his poverty alleviation program. Since then, it has become the means of upkeep to many. In the situation where many state governments saw the need to restrict the use of Okada (commercial motorcycle) Keke Napep became a safer alternative, conveying people on short distance journey to their destination.

Nigerian youth (most of them graduates) have welcomed it gladly, since it gives them better alternative to staying at home. It also gives anyone who is willing, the opportunity to invest in this lucrative means of transportation. This is how it works-

Leasing

  • The cost of Purchase is about N400,000
  • Register with a Keke station (Association) with N5,000
  • You lease it at the cost of N650,000
  • Weekly payment of 15,000 for the duration of 10 months.

Note: Terms and some other conditions may apply. You may work out something different from this analysis with your hire purchaser.

Remember, registration with Three wheelers association of Nigeria will guarantee some measure of security. However, it is your duty to make adequate findings about your hire purchaser. It’s always better if he provides reputable referees.

The fear of the unknown has caused so many people to hold back. If you have such fears, start with one, I mean “a tricycle”. How it fares will help you to determine whether to go further or not. But it is always profitable to buy as many as you can afford to buy, since that will cushion the long time remittance effect. For instance, if you lease 5 Tricycles at the cost N650.000, your profit expectancy in a year will be about N1,250,000.

Note: This analysis is based on what is obtainable in Lagos Nigeria.

Doing it Yourself

In case you choose to operate the machine yourself, the result will encourage you to do more. Daily, you could make N4- 7 000 depending on the turn out of passengers in your location. But there are other charges apart from the N5000 reg fee. You are required to pay to the Association N 400 – 1000 daily, known as (owo itaa) part of the money goes into government purse. The maintenance is cheap, the parts are readily available, N1,000 fuel could take you for the whole day if your carburetor is sound enough. Remember, maintenance is the key to success when you are using Keke Napep.

You easily make N5,000 per day with your Tricycle if you are operating it yourself. This means, you will be making about N150,000 monthly after expenses. In a year you are talking about N1.5 million minimum earning.

You can decide to expand on this business after a year or chose something else doing. How do you see this? Is it lucrative enough for you or not?

The post Venturing into Tricycle Transportation Business in Nigeria appeared first on Mobizone.

January 21, 2018 http://mobizone.ng/venturing-into-tricycle-transportation-business-in-nigeria/

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