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Lagos Agbero Economy : Unremitted Revenue Doubles With Subsidy Removal

Last updated: April 13, 2024 6:21 pm
3 years ago BY NKEIRU NWOKEDI
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6 Min Read
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Commercial vehicle drivers are faced with daunting challenges in their daily purchase of Premium motor spirit known as petrol, diesel and even the informal taxes collected by a group of touts known locally as Agberos in Lagos. They forcefully collect monies at each bus stop from commercial buses, Keke Maruwas and even the popular Okada with little concern over the expenses incurred by the drivers.

The Agbero economy in Lagos, characterized by informal taxation, revenue collection, and street-level transportation management, has long been a prominent aspect of the city’s informal sector.

The term “Agbero” is derived from the Yoruba word for “bus conductor” As The Agbero system dates back several decades and was initially associated with assisting passengers on public transportation. Over time, it evolved into a complex informal economy, with Agberos collecting fees from drivers, market traders, and other businesses.

They are non-state actors although they are recognised by the state government. They belong to the National Union of Road Transport Workers (NURTW) and Road Transport Employers’ Association of Nigeria (RTEAN).

This group had raked in billions of Naira Over the years with very little remittances going to the state government.

Despite the removal of fuel Subsidy, Commercial Drivers struggles every day to pay the Agbero who increased levies even as drivers raise their fares to meet up with the Current Price of Premium Motor Spirit also known as Petrol and the price of Diesel.

Each commercial Bus driver pays more than N7,000 to agberos, mini bus also known as Korope N4, 000 and Tricycle N3, 000.

It doesn’t end there as some other groups are at different bustop collecting N100, N200, N500 depending on the locations.

A driver, Innocent Olajide lamented that the union gets the larger part of what drivers work for on a daily basis.

“Our work is no longer the way it used to be this people don’t care , we still pay a lot on tickets and other collections. We are working but not enjoying the profit, no result to show for the efforts. Instead to reduce the amount they collect they increased . They said that since we increase our bus fares they will also increase the amount they collect from us”.

For this LT Bus driver Lekan Adekunle he pays as much as N14, 000 to Agberos daily.

” Aside the N800 national ticket, I pay N2, 000 in Alakuko, in Iyana- ipaja we pay N900 , Oshodi N1, 500 for going, then coming we pay same amount that is for morning, In the afternoon and evening we pay the same amount.”

” Out of all this money, only N800 is for the government “.

“I drive a mini-bus (Korope) and I charge N300 per passenger and in total, N2,100. I pay N500 per loading to Agberos and collect N500 ticket.

Also, a tricycle rider in Alimoso Local Government area , Samuel said: “I pay N1,500 for tickets every day including Saturday and Sunday. Apart from that, I pay N200 when I load Passengers, I pay N100 for Agbero marker, I pay N100 for turning, I pay for Chairman guest. “

The Agbero economy operates largely without oversight, leading to corruption and exploitation. The absence of formal regulation allows Agberos to act with impunity.

Reports by the the international centre for investigative Reporting ICIR in 2021 shows that Each commercial vehicle driver pays at least N3,000 to agberos, also known as ticket touts, every day, according to oral testimonies and estimates obtained by this reporter from more than 50 commercial bus drivers in 21 out of 37 local council development authorities (LCDAs) in Lagos.

This means that these drivers pay an average of N225 million each day, N6.75 billion each month, and N82.125 billion each year to agberos in Lagos, according to The ICIR’s estimates.

More than 60 tricycle drivers in 21 LCDAs in the commercial city told this reporter that they paid at least N1,800 to agberos each day.

This, therefore, means that each day, agberos walk off with N90 million from transport taxes collected from tricycle drivers. Every month, their pay reaches N2.7 billion, rising further to N32.85 billion every year.

In total, commercial buses, tricyles and motorcycles pay N123.078 billion ($300.19 million) to agberos in Lagos each year. This excludes taxis, tankers and trailers as there are no relevant data on these categories.

The Agbero economy in Lagos exacts a substantial financial toll on the city, N123. 078 billion , an amount that would have doubled with the rise in transportation fares due to subsidy removal .

To cushion the effect of subsidy removal and ensure reduction of transport fares, Lagos commercial bus drivers and tricycle operators want the state government to reduce the number of Agberos and their collection points on the roads.

Also Addressing this issue through regulation, reform, and alternative employment opportunities for Agberos could help mitigate these losses and contribute to a more prosperous and investor-friendly Lagos.

Editor : Ena Agbanoma

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