COMPARATVE ANALYSIS OF COST OF OPERATION

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CHAPTER ONE

INTRODUCTION

1.1 Background To The Study

Urban transport services in Nigeria is inadequate both in quality and quantitative terms considering the rate of population growth and the economic condition of an average Nigerian on the affordability of transport  services  to  meet  his  or  her  travel  demands  over  the  past  four  decades.  The  Structural Adjustment Programme (SAP)  of  the  middle  80’s  had  made  the  importation  of  new  automobile  vehicles relatively expensive to purchase for urban mobility in the country. Similarly, the price of motor spare parts  had  risen  astronomically  and  many  Nigerians  could  hardly  maintain  their  old  vehicles  which invariably compounded the mobility crises in Nigerian towns and cities. Incidentally most of urban trips in Nigeria are made by road, rail and water based mode and these accounted for about 95%, and the remaining 5% were mainly by walking (Oyesiku, 2001).

It is pertinent to note that of all the trips made by vehicles, 70% were by public transport, which is dominated by private sector operators. According to  Oyesiku (2002), more than 95% of all urban public  transport  journeys  in  Nigeria  were  provided  by  private  operators  using  mainly  taxis  and 50 Para transit buses. It is interesting to note that many of the urban residents are less accessible to these transport services. Besides, the service delivery of public transport operators is less satisfactory to the urban commuters in Nigeria. Most of the research works carried out on the mode of operation of public transport services in Nigeria do  not  consider the quality of  transport services in relation  to comfort, affordability,  safety  and  income  level,  which  are  all of  paramount  importance  to  mobility  pattern  of urban residents in any country of the world. The focus of this research therefore is to assess the quality of  transport  services  in  Ibadan  metropolis  with  the  view  to  improving  the  mobility  characteristics  of urban  residents  and  promoting  sustainable  transport  development  in  the  study  areas  and  many  other cities in Nigeria.

The Nature of Commercial Motorcycle Transport in Nigeria

The commercial motorcycle business has grown into a major business concern in Nigeria and it is a fairly well organized business with considerable patronage. Motorcycles ply virtually every route including the highways until the recent effort by some state governments to restrict their operations. In Lagos State, for example, Okada could be found plying major roads in Epe, Ikorodu, Badagry, Mushin, Oshodi, Alimosho, Ikeja, Victoria Island,Obalende, Surulere and other areas of the city. They cover distances ranging from a few metres to a distance as far as20 kilometres. They are as effective in the urban centres as well as in the rural suburbs. The availability and flexible pricing makes the motorcycle affordable to the vast majority of the people that utilise it as a means of commuter transportation. It could reach any nook and cranny of the towns and cities at a price often considered reasonable by the commuters. The fares charged by the commercial motorcyclist range from N50.00 for a short distance to about N500.00 for long distance; in some cases, it could be higher. But it is relatively cheaper and faster than conventional taxi cabs. Using Lagos as an example, a ride from Okokomaiko in Ojoo Local Government area to Mile Two in Amuwo Odofin could cost about N300 to N400. However, the same distance cost N100 by conventional bus transportation while a taxi ride will cost about N1,500. A conventional taxi will also charge about N5000.00 for a trip from Agege to Victoria Island, but the Okada could charge about N2000.00 for the same trip. The advantage which the commuter derives from this is the time saved due to traffic congestion. A normal bus ride from Agege to Victoria Island could take about three hours whereas the Okada will make the same trip in about 1 hour, 30 minutes regardless of the traffic situation (Personal Communication with Mr. Olusola Falana, An Okada Rider, 24 June, 2011).