Keke Tricycle Price in Nigeria Skyrockets to N3.5 Million Amid Economic Hardship
- Economic difficulties in Nigeria have driven up the cost of purchasing a commercial tricycle
- According to reports, the price of acquiring the three-wheeler has risen to as much as N3.5 million
- The soaring costs of petrol and vehicle maintenance have made operating tricycles as a profession even more challenging
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Legit.ng journalist Victor Enengedi has over a decade's experience covering Energy, MSMEs, Technology and the Stock Market.
The prevailing economic challenges in Nigeria have significantly increased the cost of acquiring a commercial tricycle.
Commonly referred to as Keke Marwa, these tricycles have served as a dependable means of transportation for passengers and a sustainable livelihood for operators across various parts of the country.
Source: UGC
Keke Marwa rose to prominence between 1996 and 1999, following its introduction by the administration of Mohammed Buba Marwa, a former military governor of Lagos State.
Keke operators face challenges
Tricycle operators and aspiring owners now face a daunting challenge due to the sharp surge in the cost of the three-wheeled vehicle.
Currently, acquiring a tricycle through hire purchase reportedly costs around N6 million, while an outright purchase requires at least N3.5 million.
Just five years ago, these prices stood at N1 million for hire purchase and N600,000 for outright purchase.
According to The Tribune, the dream of owning a tricycle has become increasingly out of reach amid the prevailing economic difficulties.
Many prospective operators struggle with the steep hire purchase rates, as outright purchase of brand-new tricycles has largely become an unrealistic option.
Mr. Adekunle Johnson, a commercial tricycle operator in Lagos, explained:
"The higher purchase system is no longer favorable. Before, I could pay around N2,500 daily and still have something left for myself. Now, they demand N5,000 daily, which is unrealistic considering the current state of the economy."
This situation has reportedly led to a decline in the number of operational Keke Marwa, as many operators are opting to sell their tricycles due to the rising maintenance costs.
Compounding the challenges faced by tricycle operators are the surging prices of petrol and the cost of maintenance.
Since the removal of fuel subsidies in mid-2023, petrol prices have skyrocketed, increasing from N185 per litre to over N1,000 in various parts of the country.
According to Uche Nwaogwu, a tricycle operator in the Ikotun area of Lagos, Keke Marwa relies heavily on petrol, and the sharp increase in fuel prices has significantly eroded operators' profit margins.
He said:
"Before, I could fill my tank with less than N2,000 and work for the whole day. Now, I spend almost N6,000 daily on fuel, and passengers are not willing to pay higher fares. How are we supposed to survive?"
These challenges, combined with the soaring costs of petrol and vehicle maintenance, have reportedly driven many operators to abandon the transportation business that once provided a means of livelihood for their families.
CNG, solar-powered keke as alternatives
The administration of President Bola Tinubu has taken significant steps to promote the adoption of Compressed Natural Gas (CNG) as an alternative to petrol.
As part of the Presidential Initiative on Compressed Natural Gas, the federal government distributed over 2,000 CNG-powered tricycles to help mitigate the country's high petrol cost.
Also, a dedicated portal was launched to provide interested individuals with access to these tricycles at affordable prices.
In a related development, Legit.ng reported that TVS Motor Company, a private auto manufacturing firm, introduced the TVS King Deluxe, a CNG-powered tricycle.
Similarly, Okafor Motors, a Nigerian company, announced plans to begin mass production of its solar-powered tricycles, branded as Nikeke.
Obi Cubana rolls out CNG-powered tricycles
In related news, Legit.ng reported that Obi Cubana unveiled CNG-powered tricycles through his company, Enviable Transport, in collaboration with DAG Bajaj Auto Nigeria.
The collaboration focuses on encouraging the use of CNG vehicles as an affordable alternative amid the ongoing fuel crisis.
The Nigerian billionaire businessman highlighted how switching to CNG will mitigate the effects of increasing fuel prices in Nigeria.
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Source: Legit.ng
