Keke Napep Drivers,Okada Riders in Kogi Struggle to Break Even Amid Economic Hardship.

By Dada Ahmed in Lokoja.

Photo credit: Google.

Keke Napep drivers and Okada riders in Kogi State, North Central Nigeria, are finding it increasingly difficult to break even due to escalating economic hardships and rising fuel prices.

Economic experts define breaking even as a financial situation where total revenues match total costs, resulting in neither profit nor loss. This means businesses cover all expenses but do not generate a profit.

Several drivers and riders interviewed by our correspondent on Monday, expressed frustration over the recent increase in petrol prices, which have surged from around N600 per litre to between N1,000 and N1,300. This price hike has significantly impacted their businesses.

Isa Mohammed, a Keke Napep driver, said he spent N15,000 daily on petrol, leaving little to no profit. “Due to wear and tear, I also spend heavily on repairs. At the end of the day, I rarely make any profit,” he said.

Another driver, Micheal Audu, expressed disgust over the strain of the rising fuel costs on his transport business. “I purchased my KekeNapep on credit for N5 million and am required to make daily payments of N7,000 to the financing company.

“On average, I spend close to N15,000 on fuel daily. Despite the increase in transport fares, the current economic conditions are making the business less profitable,”Audu revealed.

“Although I own my Okada, I no longer make the desired profit. “Ninety percent of my earnings go toward buying fuel at exorbitant prices. This is a common struggle among my colleagues as well.

“The heat of the current economic challenges in Nigeria is hitting hard on the masses, the Tinubu administration should do the needful to ease the hardship,” he said.
The situation is similarly dire for Okada riders. Stephen Lawal, a rider with 15 years experience in the business, described the current economic challenges and fuel price increases as “terrible”.
Other members of the public interviewed have urged the federal government to address the fuel price hike to alleviate the suffering of the masses.

They also called on Alhaji Aliko Dangote, President of Dangote Group of companies to expedite the operation of his new refinery to help reduce the exorbitant fuel prices in the country.

They argued that an abundant supply of petrol at filling stations would surpass demand, which would naturally lead to a reduction in the pump price of fuel.

According to them, once there is abundant supply of petrol in filling stations, supply will out weigh the demand for the product and this will naturally force the pump price of petrol to come down.

Meanwhile,the Nigeria Labour Congress (NLC) and former Vice President Abubakar Atiku warned, over the weekend, that the federal government’s increase in petrol prices has pushed many Nigerians to the breaking point.

Human rights lawyer ,Mr. Femi Falana, SAN, therefore urged the Federal Government to ensure that the nation’s refineries are fully rehabilitated by September 2024.

Similarly, the Socio-Economic Rights and Accountability Project (SERAP) called on President Bola Tinubu to direct the Nigerian National Petroleum Company Limited (NNPCL) to immediately reverse the “illegal and unconstitutional” hike in petrol prices at its retail outlets.

The NLC, demanding a reversal of the price increase, has urged Nigerians to support efforts to address the significant rise in petrol prices.

President of the NLC, Joel Ajaero, represented by Deputy President and President-General of the Maritime Workers Union of Nigeria (MWUN), Prince Adewale Adeyanju, made the call during the 2024 annual workshop organized by the Labour Writers Association of Nigeria (LAWAN), with the theme, “Challenges of Nigeria’s Economic Downturn: Survival Options for Workers.”