Okada ban: How LASG betrayed Opay, Gokada, MAX.ng,others

February 2, 2020

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…as $200million investment goes down the drain

‘Government is essentially immoral’.These words of English philosopher, Herbert Spencer, came to the minds of many, since the Lagos State Government, wielded its stick against commercial motorcycles (Okada) and tricycles (Keke NAPEP), proscribing their operations in six Local Government Areas (LGAs), nine Local Council Development Areas (LCDAs) and 10 major highways across the State with effect from today February 1,2020.To add salt to their injury, the State Government directed security operatives to embark on a total enforcement of the State’s Transport Sector Reform Law of 2018.This immediately sent the okada and keke operators into mourning,as the move,has shockingly taken food off their table.Blessing, a lady operating Keke, in Ogba area of Lagos, lamented, ’people will die of hunger, there will be no food’. Many Okada riders are now ranting angrily, they echoed that crime rate will increase with the ban. Worst hit are,members of Transportation Hailings Alliance of Nigeria, a group of investors in the motorcycle operations like the ORide, MAX.ng, Gokada and others.

They are now lamenting bitterly, as their huge investment and the technology infrastructure they built,will now go down the drain. Reports has it that,with the ban,the investor will up lose up to $200million,from the backlash of the harsh policy. Little wonder,yesterday, in Lagos, the motorcycle riders took to the street to express their grievances over the ban.

The riders, which include majorly that of Gokada and Max.ng staged a peaceful protest from Oregun road to the government secretariat in Ikeja.Bearing various placards, the protesters appealed to the state government to regulate their services and not restrict them from operating.

If you recall,in 2019,OPay the parent company of ORide raised $120million. That was after raising $50million earlier in the year.

In May 2019, Gokada announced that it has raised $5.3million by San Francisco-based Rise Capital.

Around June 2019, MAX.ng.also raised a $7million funding capital $7 million by Novastar Ventures, with participation from Japanese manufacturer Yamaha.

To operate in Lagos, government required for them to operate as part of local transportation infrastructure, which brought about the meeting with the Lagos State chairman of the National Union of Road Transport Workers (NURTW), Musiliu Akinsanya, popularly known as MC Oluomo,whey signed a memorandum of understanding.

Under the proposed regulation, each startup will pay annual licensing fees of 25 million naira ($70,000) per 1,000 bikes and then 30,000 naira ($83) per bike after the first set of 1,000.Little wonder,a twitter user lashed at the Governor,after the ban was announced, ’if OPay and Gokada is illegal, then this is also illegal’, displaying a picture where ORide and Gokada management team,visited the Governor,last yearhis office,to intimate him of their activities.

The current move,has sent wrong signal to foreign investor,they now see Nigeria and Lagos,as not conducive for investments,despite meeting all governmental conditions.

However the Government, through the Commissioner of Information Gbenga Omotoso, said “scary figures” of fatal accidents recorded from operations of Okada and tricycles,lack of regard for the Lagos Traffic Laws, and their impermissible movements on restricted highways had also contributed to traffic jams,are parts of the reasons for the ban.

He said: “After a robust assessment of the debate on what has been widely referred to as the motorcycle (Okada) and tricycle (Keke) menace, the Lagos State Government and the State Security Council have decided that the security and safety of lives of Lagosians are paramount.

“Also, the rate of crimes aided by Okada and Keke keeps rising. They are also used as getaway means by criminals. Therefore, after consultations with stakeholders, the State Security Council, in compliance with the extant Transport Sector Reform Law 2018, has decided to commence enforcement of the law which bans the operation of Okada and Keke in six Local Government Areas and nine Local Council Development Areas (LCDAs).”

Omotoso,further warned that the enforcement would be total, warning that the Government would deal with violators in accordance with the Laws. According to the Commissioner, operations of Okada and Keke NAPEP have been banned in the following LGAs and LCDAs: Apapa LGA, Apapa Iganmu LCDA, Lagos Mainland LGA, Yaba LCDA, Surulere LGA, Itire-Ikate LCDA, and Coker-Aguda LCDA.

Others are Ikeja LGA, Onigbongbo, LCDA, Ojodu LCDA, Eti-Osa LGA, Ikoyi-Obalende LCDA, and Iru-Victoria Island LCDA, Lagos Island LGA and Lagos Island East LCDA.

The Okada and Keke NAPEP are restricted on the following highways and bridges:

Major Highways