The Declining Economic Status Of Nkwo-Nnewi Market

The major economic attraction to Nnewi is the famous “Nkwo Nnewi Market”, although the town hosts some number of industries, the truth remains that Nnewi is virtually nothing economically, without the market. 

The presence of the market is what is driving both the population and economy of the town. Obviously, people relocating or coming into the town are not coming in because of the number of industries, but, because of Nkwo-Nnewi Market. 

Nkwo Nnewi Market is made up of nine (9) different markets, but the market is peculiar due to its history of being known as the major import and wholesale point for motor and motorcycle spare parts in Nigeria. The auto and motorcycle section of the market developed to the extent that dealers in collaboration with their manufacturers have products made and sold in local branded names. 

While the motor parts section of the market appears to have collapsed due to the proliferation of more market that measures in the sell of the products, the motorcycle spare parts business have continued to suffer a sharp decline in patronage over the years due to the continuous banning of commercial motorcycle popularly known as Okada, by different state government in Nigeria. 

Ban On Commercial Motorcycle (Okada)

Across Nigeria, most state governments have continued to ban commercial motorcyclists from plying most cities either because of the increase in crime, in pursuit of a green environment or as part of a futuristic transportation plan. 

Okada has been banned in places like Abuja, Awka, Asaba, Enugu, Abakaliki, Bauchi, Abeokuta, Calabar, Onitsha, Owerri, Port- Harcourt, Kaduna, Uyo, Kano, Kebbi, Katsina, Sokoto, Zamfara and Major parts of Lagos, virtually most states in Nigeria have either restricted their operations or have banned their operations in their cities.   

Despite sustaining millions of families in Nigeria, with the estimated generation of N30 Billion daily, most state governments have continued to phase out okada business. 

Okada and Crime

Aside from the nuisance constituted by Okada operation, it has been associated with criminality – it is believed that motorcycles are being used by criminals to perpetrate crimes and harm the peace and security of the people. Most robberies, hire killings, snatching of bags, phones, laptops are carried out through motorcycles, which is fast and can navigate the roads easily. 

Accidents

According to a research conducted by Damilola J. Micah and Gabriel O. Owagbemi of Adekunle Ajasin University Akungba-Akoko, Ondo State, commercial motorcycles have a higher rate of crippling and fatal accidents per unit distance than cars and buses. Their research at Obafemi Awolowo Teaching Hospital, Ile-Ife, Nigeria, showed that injuries to limbs occurred in 79.3 percent of patients who reported at the emergency department of the hospital. These patients were linked to commercial motorcycle accidents. 

Also, according to the Lagos State Government, From 2016 to 2019, motorcycles and tricycles were responsible for 10,000 accidents and 600 deaths between 2016 and 2019 in the General Hospitals. This number excludes unreported cases and those recorded by other hospitals.

Okada is seen as the riskiest and a reckless form of transport that endangers motorists and other road users.  

Green Environment

In 2013, Gainaako reported that an average Okada releases more greenhouse gas than a modern bus and when one considers that an Okada only commutes one (1) passenger at a time while a bus can commute ten (10) or more, then the pollution from the bus drops even further per capita.

In pursuit of environmental sustainability against the threat of global warming, it is obvious that motorcycles as a means of transport are not the future. 

Alternative Means Of Transport

Many see Okada business as a sign of retrogression. The mode of transportation is considered outdated, despite the poor road infrastructure in Nigeria. Most governments prefer shuttle buses, taxis and tricycles popularly known as Keke to ply their roads especially in the cities in order to sanitize and restore order and sanity on most roads. 

Clearly, there is no country that is serious about development that will continue to keep Okada as a means of transport, especially with the option of rails, electric cars and eco-friendly buses.

How does this Affect the Nnewi Economy?

The buying and selling of motorcycle spare parts have fallen drastically with the continuous ban on commercial motorcycles, and the truth remains that there will be no recovery moving forward. No amount of hope and prayers can reverse this, it’s pending collapse is imminent. Other businesses surviving through the cash flow in the market have also been greatly affected. 

Without doubt, Nkwo-Nnewi Market is the main source of livelihood of about 70% of the working class living in Nnewi, the remaining 30% are either working at the Nnamdi Azikiwe Teaching Hospital (NAUTH), Nnamdi Azikiwe University, College of Health Sciences, Okofia, the few industries in the town, or those involved in petty trading, white-collar jobs, unskilled labour and different small scale entrepreneurship service.

The Big Question

What will be the future and relevance of Nnewi in a few years time with the decline of motorcycle trade?

Read Also: OKADA BAN IN SOME SELECT CITIES IN ANAMBRA STATE AND THE FUTURE OF NNEWI ECONOMY

Beyond Buying and Selling

Slowly but gradually, most of the traders with foresight have and are diversifying into production, with the likes of Innoson, Ngobros, Coscharis, Chika Emenike (Kotec Group), Louis Carter, and most recently, Ikenna Ifejiofor (Jolly Jolly Noodles) taking the lead. 

For Nnewi to remain economically relevant in Anambra and Nigeria, the traders should start investing in other businesses especially in manufacturing, agriculture, technology, hospitality, transport, media and other service-based sectors. There is obviously a need for a paradigm shift.

What of Nnewi Automotive Industrial Park?

Though still a proposal, the Nnewi Automotive Industrial park is designed to bring supporting automobile parts manufacturing companies together, to deliver support services and vehicle components. This will trigger a lot of economic activities, infrastructure, knowledge and will lead to the creation of more jobs. When it comes on stream, it will be a world-class hub of advanced technology.