🔥 Premium AI-powered Stock Picks from InvestingPro Now up to 50% OffCLAIM SALE

Crowded Lagos to ban motorbikes from most of Nigerian metropolis

Published 27/01/2020, 23:13
© Reuters.  Crowded Lagos to ban motorbikes from most of Nigerian metropolis
OPRA
-

By Libby George

LAGOS, Jan 27 (Reuters) - Nigeria's business capital of

Lagos will ban commercial motorcycles from operating in large

parts of the city, the state government announced on Monday, a

move that could change the commute for thousands and threaten

ride-hailing startups.

The Lagos state government announced on Twitter that it

would ban motorcycles, commonly known as okadas, from operating

in most of Lagos because of what it described as their "chaos

and disorderliness" and "scary figures" of fatal accidents.

Companies such as Max.ng, Oride and Gokada have been aiming

to capitalize on the congested Lagos roads and the city's

teeming population to expand their operations. The ban cites a 2018 law to bar okadas and small

three-wheeled vehicles known as kekes from Feb. 1. It would bar

them from 40 bridges and flyovers and areas covering the

business districts of Victoria Island and Lagos Island, Apapa,

where the primary port is located and Ikeja, which is home to

the international airport.

Chinedu Azodoh, cofounder of Max.ng, is hopeful that the ban

would not apply to them since their bikes are above the 200

cubic centimeter engine size banned specifically by the law.

"From what we've seen today, we don't think the ban affects

our business," Azodoh said.

Still, he said, enforcement could be tough on their riders

and drivers if police are not well-versed on the specifics of

the law.

"We expect some more clarity on how this will be

implemented," he said.

Max.ng, which also operates in Kano, Ibadan and Akure in

Nigeria, had an investment round last year that raised more than

$5 million.

Startup Gokada also raised $5 million last year for its

Lagos operations. Founder Fahim Saleh said that while their

bikes are also above 200cc, he was not sure about the impact of

the ban on them.

"It's disappointing," he said, adding they would seek to

expand its operations in courier and logistics services. "We

don't know how it's going to be enforced."

ORide, part of OPay in which Norwegian software firm Opera

Ltd OPRA.O has an equity interest, also offers ride-hailing

motorcycles in Lagos. Reuters could not immediately reach the

company for comment.

In June, Gokada told Reuters that there are an estimated 8

million okada drivers operating across Nigeria.

($1 = 305.9500 naira)

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.