Impact of Commercial Motorcycle Transport in Raising Income: Evidence from Jigawa State, Nigeria

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Impact of Commercial Motorcycle Transport in Raising Income: Evidence from Jigawa State, Nigeria

Gambo Babandi Gumel, Ibrahim Muhammad Adam & Itari Abdul-Razaq Rilwan

Department of Economics and Development Studies

Federal University, Dutse, Jigawa State, Nigeria

Corresponding Author: Gambo Babandi Gumel

ABSTRACT

The paper examines how commercial motorcycle business generates income for many of the unemployed people in Jigawa state and the North-Western region of Nigeria. The study employed primary data generated from a survey of 300 randomly selected motorcycle riders in three local government areas in Nigeria. Eviews9.0 & SPSS 20 software aided data analyses were used for descriptive analyses and in addition, an econometric model was specified and estimated using the OLS techniques. A majority of the operators (40.3%) generate average income of between N901 – N1, 200 and the multiple regression result reveal that years of experience, daily savings and daily fuel purchase are the major determinants of income generation model, although the model does not have a good fit given the very low value of R2 (0.31), but, overall, the model is highly statistically significant according to the F-test which is rejected at 1% level of significant. The model is very satisfactory as it passed two out of the three econometric tests conducted. The paper however, recommended government to formalize and regulate the activities of commercial motorcycle operators in order to strengthen the business. In this way, transport service delivery to the people will be enhanced; earnings of the Okada riders will equally be improved to maximize their welfare.

Keywords: Commercial Motorcycle, Transportation, Income