Determinants of earnings among commercial tricycle operators in Ilorin metropolis, Nigeria

Abstract

In 1999, Nigerian government of Olusegun Obasanjo launched series of empowerment schemes to alleviate poverty. Among these is tricycle empowerment. Till date, tricycle is used for commercial transport in Nigeria. This study examines the determinants of earnings among commercial tricycle operators in Ilorin metropolis, Nigeria. 335 commercial tricycle operators were interviewed via structured questionnaire, using stratified-simple random sample method. 321 questionnaires were returned valid. The study covers 15 major tricycle parks in Ilorin metropolis. This study is rooted on Minority Group Theory and Human Capital Theory. It is analyzed using logistic binary logit and stepwise regression technique. The results show that ownership of tricycle, passengers-carried per day, and membership to tricycle union are core determinants of daily earnings. And that a unionist is better off than non-unionist. Operator who owns a tricycle is also better off than one who lives on a rented tricycle. The core challenges of operators are: high daily fee charges by union, high price of tricycle, seasonal demand for tricycle service in routes that link schools, and undignified approach of passengers. The study recommends that government should subsidize the cost of tricycle on monthly installments through registered tricycle unions, and that government should also regulate daily charges by unions.