Monday, August 5, 2013

LCCI requires Lagos Government to review plan on usage of 200cc motorbikes

The Lagos Chamber of Commerce and Industry (LCCI) has called on the Lagos State Government to review its policy stipulating that courier companies and dispatch riders in Lagos State must use motorcycles of at the least 200cc convenience of their operations.

LCCI said the policy “is posing a major threat to the businesses of courier companies and other stakeholders in Lagos state. “Many companies that engage in-house dispatch riders for prompt delivery of sensitive documents and servicing of customer outlets

are now in a dilemma. Many courier firms and other corporate bodies in their state are now actually delivering mails on foot,” said a statement signed by Muda Yusuf, the Chamber's director-general.
“200 cc capacity motorcycles are generally unavailable in the country since they are in the number of power bikes, not commonly useful for mail delivery and other commercial purposes. This scarcity has established room for several types of malpractices, including falsification and relabelling of lower capacity motorbikes as 200cc and above.”

In accordance with LCCI, the cost of a motorcycle of 200cc capacity and above, where available, is in the region of N500, 000 to N1 million, depending on the brand, which suggests that for a firm that requires to displace 10 of the motorcycles, at the least N5 million to N10million will soon be required.
“Many courier companies have up to 50 motorcycles. For all of the small players in that sector, this may be the finish of the trail because of their enterprises. Commitment of such resources to the purchase of 200cc motorcycles is just a big drain on the resources of courier companies which will be itself a low margin business,” Yusuf said.
The Chamber argued further that: “Electronic payment companies count on the usage of motorcycles for prompt servicing and maintenance of the various electronic payment platforms including the POS terminals situated in various locations in the metropolis. The response time of the providers is currently at the cheapest ebb.
“We submit that the usage of 200cc (and above) motor bikes wouldn't add any value to the realisation of the goal of the traffic law, especially in the light of the intense traffic congestion on Lagos roads. If anything, smaller capacity motorbikes tend to be more flexible and better suited for a higher traffic environment.
The business of courier is just a pick–up and delivery service, often over short distances. Using a 200 cc motorcycle for such service is obviously inappropriate.”

It further added that the grueling bureaucracy of certification and registration of the 200cc motorbikes have created avenues for several types of malpractices, including touting and that service delivery quality of courier companies has dropped drastically considering that the enactment of the policy which will be going for a toll on other sectors in the state.
“We appreciate, and indeed share the concern of government on the security implications of a liberal motorcycle policy, but there should be a definite distinction involving the commercial motorcyclists and corporate organisations providing services for the smooth running of the economy of the state.