In this report, Kehinde Akinseinde-Jayeoba examines the growing trend among business owners who conduct business activities inside vehicles in different parts of the country.
Aside from having physical locations such as shops, malls, stalls and offices to trade, mobile vending has given hope to many Nigerians such that the phenomenon is now on the increase in the country.
The display of wares in vehicles is a prominent feature on major roads across the country as cars, buses and even vans are common sights in densely populated areas where human traffic is usually recorded.
This may not be unconnected with the high cost of renting shops, among other challenges being faced by informal business owners.
In Lagos State, for instance, which is regarded as the hub of micro, small and medium enterprises (MSMEs) in West Africa with a growing number of 3,224,324 micro-operators and over 11, 663 SME operators, mobile vending appears to be the order of the day as mobile vendors saturate the populated locations in the state including Bus Rapid Transit (BRT) stations.
To rent a decent shop at a prime location in Lagos State, a minimum of N1 million must be on the table for yearly rent aside from other supporting fees such as agent, commission, sanitation, among others. In less populated areas, standard shops range from N400,000 to N700,000 while stalls are acquired for between N60,000 and N100,000 per annum, aside from other daily, weekly, monthly or one-off payments.
According to Kenneth Kelechi, one of the vendors at the Ikotun BRT station, carrying out business with the use of cars, in spite of its alluring benefits, is not for the faint-hearted.
For almost one year, Kelechi plies his trade at the BRT terminal in Ikotun where he sells men’s and children’s wears from the booth of his Toyota Sienna Space Bus.
To aid his trade, K.K, as he is popularly known among other traders, displays some of the wares on the windscreen for prospective buyers while the rest of the load is kept in the booth.
To avoid harassment from louts, Kelechi said he made an initial payment of N15,000 to the leader of the agberos at the Ikotun bus stop. Subsequently, he makes a daily payment of N800 after a moratorium of two weeks.
Speaking with the Sunday Tribune, he said: “I moved my wares to the bus stop almost one year ago when traders in the main market started experiencing a drop in sales.
“I discovered that street traders are more advantageous when it comes to patronage as they get in contact with potential customers before they can get to us at the plaza. And we have bills like shop rent and utility bills to settle despite the low sales.
“This was why I moved my wares to the road. Since I have been here, my sales have improved. I do not regret ever moving to the road because it is worth the while but it comes with the initial payment of N15,000 to secure a spot on the road.
“This payment is made to the chairman of the agbero at the BRT. After the payment of N15,000, you are expected to pay between N800 and N1,000 daily which starts after two weeks of resuming trading on the road. For many of us, being on the road and trading in cars has nothing to do with our inability to afford a shop but about gaining easy access to buyers.”
Another trader also in Ikotun, Austin Akanbi, sells loaves of bread from the bonnet of his minibus.
According to Akanbi, traders maintain morning and afternoon shifts on the road. The morning shift, he stated, starts around 5:00 a.m. and ends at 10:00 a.m. while the afternoon shift begins at 4:30 p.m. till midnight.
Unlike Kelechi, Akanbi has no shop anywhere. For him, he only takes advantage of the huge population of residents in the Alimosho area of the state.
He said: “Normally, I am not a trader but I do the afternoon shift selling loaves of bread at the Ikotun bus stop. I only see an opportunity in selling loaves of bread because of the huge number of people living in Alimosho. So I chose bread.
“And the sales have been good because I enjoy huge patronage from people closing from their various places of work heading home at night.
“I have not experienced any challenge or confrontation with the agberos because I pay their daily dues and after the initial payment of N10,000 and at times, I give them two or three loaves of bread. At least, it is better than losing everything to their troubles.”
For a bakery on the outskirts of Lagos State, the decision to take to street trading with the use of their vehicles was a liberating one for the business.
According to Christian Maduka, the manager, who also serves as the driver, delivering the loaves to customers in their shops and having a strategic location at Agege car park has helped to promote their business.
Speaking to Sunday Tribune, Maduka, who does not want the company’s name to be mentioned in prints, noted that the bakery, situated at Olambe in Ifo Local Government Area of Ogun State, was not making much sales as the area despite its closeness to Lagos, adding that the area is not densely populated and the competition there was stiff.
“I suggested to my boss to allow me to try the idea of using the company bus for selling our bread when our sales dropped tremendously. At that point, we were at the point of closing down. He agreed. We started with our immediate community, Olambe, Giwa, and Akute.
“When we noticed that the sales increased but not to the level that we wanted, we expanded to Lagos State and that’s where we had our breakthrough.
“Before now, we did a trip daily but now, we do at least two trips in a day. In the morning, we take it to shop owners and sell it to them at wholesale prices. In the afternoon, we do the same and sell to end users, especially to customers that we’ve noticed for their consistency. Then, between 5:00 p.m. and 9:00 p.m., we take our bread to Agege to sell to people coming back from work.”
Maduka explained that the accompanying challenges are part of Lagos life, adding that “the agberos know us, we know them. We try to settle them the little way we can. If their demands get too much at a particular location, we move to another.”
For him, the challenges do not outweigh the benefits they get in terms of increased sales.
He further explained: “We now bake at least twice a day, aside from weekends. We’ve increased our staff base. We even have marketers who follow the drivers to the motor parks.”
Sunday Etim, another vendor, sells a variety of goods including electronics such as Bluetooth speakers and DVD players; kitchenware as well as fashion accessories such as wristwatches, earrings, bracelets among others.
For him, trading with his vehicle is the best way to sell his wares. Unlike most vendors situated in densely populated areas, Etim parks his car at a leading to different estates at New Oko Oba, Lagos. Just before the road are about three hotels, a petrol station and shopping complexes.
Etim told Sunday Tribune that his car was an expansion and growth from where he started.
“Before the lockdown as a result of COVID-19, I used to go from one office to another selling fashion items, but that stopped during the lockdown. Shortly after the lockdown, I wanted to pick up where I started but I noticed that most demands for my goods came from people I market to on my street and along the road.
“In most cases, what they asked for may not be with me at that particular time because I cannot carry all my goods at a time. So, I asked my brother to lend me his car to take my goods to my customers, but even with that, I kept missing some of my customers.
“So, I decided to just stay at a location. This has earned me more customers because passers-by would see me with my goods by the roadside every evening. Even my previous customers come to buy from me and they call me before coming because I do not come out every time.”
Speaking on his challenges, he explained that recently, the weather had been a major challenge because there’s nowhere to hide when the rain threatens
“Anytime it rains, I pack my goods back into my car. Nobody disturbs me here but wisdom is profitable to direct,” he said.
He explained that there are times young people who come to unwind at the nightclub, who are under the influence of alcohol, come to harass him, adding that this does not make him stay late at the place.
“By 7:00 p.m., I always leave this place because some of those going to clubs may want to buy things and not pay. You know how these people behave now. So, I do not stay till night here because when they start their troubles, even the security personnel at the club may not be able to handle it.”
For Mrs Praise Juwon, vending with her vehicle started out of the need to make quick money. She told Sunday Tribune that she only comes to the park to sell when she finds goods in imported cars.
“I help import cars for friends and at times, I import to sell. Most times, I ask my friends abroad to pack some wares in the car. When it comes, I give some out but when I need money, I take them to motor parks in my car.
“I just park at a little distance from the motor parks because of the louts. I open my booth and start ringing a bell which attracts people to check out my wares. Most times, I sell them cheap and in less than three hours, I would have sold everything.”
Another vendor, Sola Shopo, told Sunday Tribune that selling from his vehicle is the best approach for him because he uses the opportunity to sell to his colleagues in the office, who do not have the time to come to check them out at the shops.
He also explained that it is cost-effective compared to renting shops which are on the high side.
Tope Oluwadare said the approach gives room for both business and leisure while allowing him to trade with some level of flexibility.
Oluwadare noted that at times, government policies affect having a physical shop as the government agents go about demolishing defaulting stalls and shops. This, he noted, disturbs businesses, stating that with his vehicle, he can move around freely and move from one location to another as he pleases.
With the boom in street trading in Lagos, the state government is planning a clampdown on trading on streets as it negates the agenda of Governor Babajide Sanwo-Olu to promote a cleaner and more aesthetic environment in the state.
It will be recalled that the Lagos State government read the riot act to street traders in the state a couple of months ago, especially on the Third Mainland Bridge and Eko Bridge while declaring zero tolerance for street trading in the areas.
Same situations in Anambra, Oyo, Niger states
Some of the traders, who spoke with Sunday Tribune in Anambra State, said they engage in mobile vending because it enables them to make quick money while still engaged with other day-to-day activities.
Mr Edward Chilue, who sells clothes and shoes in Eke-Awka market in Awka, the state capital, said using his car for the business enables him to further his part-time study at the state-owned Chukwuemeka Odumegwu Ojukwu University, Igbariam.
He explained that his academic programme is the main reason behind the decision to use his vehicle for sales and not because he could not afford a physical shop of his own, adding that “some of the traders are part-time students, civil servants.”
Another shoe seller at Upper-Iweka, Mr Ernest Ogwu, said even though he has the money to rent a shop of his own, the high level of competition among traders forced him to steer clear of the sectional markets within the commercial city.
“Onitsha has many sectional markets and there is a high level of competition there. This forced many of the Onitsha traders into debt, which I am afraid of.
“I pay money to revenue collectors in the area. The only challenge we have is the rain, scorching sun and the harassment from louts around the market.
In Nnewi, Mr Ignatius Eyim said he has not recorded a shortage of patronage and sales in the 12 years he has been selling with his vehicle, adding that “the major challenge we have here in Nnewi is insecurity. The continuous attacks by gunmen have made the industrial city to become unattractive.
In Ibadan, Oyo State, a trader who gave his name simply as Folorunso runs a dried fish outlet inside a van located at the Challenge area of the state capital. He noted that the company he works for may not move away from the location because of the high patronage it gets from customers around.
“If we move our vehicle from one spot to another, it will be difficult to retain the patronage of most of our customers even though we get customers from the new place.
“Some people from the local government come here but it is not all the time. Whenever they are around, I inform my boss who interacts with them and resolves the issue. The bone of contention most times is that they complain about where we park our van,” he told Sunday Tribune.
At the Molete area of the state capital, Sunday Tribune met Mercy Eze who sells loaves of bread to shop owners, other retailers and individuals by going from one place to another in the city with her vehicle. Through this, she makes massive sales every day.
She told Sunday Tribune that she used her vehicle because there was not enough capital to rent a shop in Ibadan.
“The most difficult challenge I faced while selling bread is the weather conditions. When we are in the dry season, I’m affected by the sun and when it is the rainy season, I’m affected by the rain. Some customers will claim they have paid me when they have not. These and many more are the challenges I face every day.
“Renting a shop is still one of the things I’m considering because if you are in your shop, you can rest, chat with customers and your goods are protected unlike standing outside. Most times, the sun affects the bread.
“Anytime the area boys approach me, I call my boss who would speak with them. I work and get the bread I sell from him. I make good sales every day by moving from one place to another and selling bread to people,” Eze narrated.
Another vendor, Mrs Ope Ayodeji, deals in the sale of thrift clothes for children between ages two and 15 at Orita Challenge area of the city.
When she started the trade, she thought of getting a shop but found out that the rent was expensive.
Using a vehicle as a mobile store provides her with relative comfort.
She said: “Government officials stop me from displaying my goods on walkways. The increase in fuel prices has also affected my business operations. The approach is flexible such that I move to another location whenever there is a drop in sales.
According to Mrs Ayodeji, selling clothes from a vehicle has more advantages than selling from a shop as it allows for greater mobility and can help save costs associated with renting or maintaining a shop.
Mr Humphrey Nwagwu, who sells rubber slippers and shoes at the Tipper Garage junction, said he has been in the business since the 1980s but opted for mobile vending due to unfavourable economic conditions and because of his need to increase profits to support his family.
“Not all periods yield profit but having a mobile shop makes it easier for me to relocate when necessary,” he said while expressing optimism about securing another store for his goods.
For Nwaboba, who specialises in selling used pots, shoes, watches and cookers in the Agara axis of New Garage, utilising his vehicle as a mobile shop has provided more profit than relying solely on his physical store that is located in Lagos.
“I make double the number of sales using my vehicle in Ibadan compared to staying at the shop. This is due to the nature of my business and the flexibility afforded by being able to move around with the merchandise. I have been able to increase profits significantly,” he said.
In Minna, the Niger State capital, Mrs Abigael Joseph revealed that most traders converted their vehicles into warehouses and mobile shops because of the lack of adequate funds to rent shops.
She revealed this while speaking with Sunday Tribune in front of her Sienna Toyota space bus parked at Dushen Kuta Hausa, a few meters away from the Headquarters of the State Police Command in Minna.
The graduate of Geology from Ibrahim Badamasi Babangida University, Lapai said the choice of the location was as a result of the influx of customers in the area who are usually on the ways to their offices and homes
According to her, “I have decided to bring my car here with my wares inside the trunk of the car since I discovered that both pedestrians and motorists alike are usually attracted to the quality but affordable products that I have.”
She stated further that her sales have improved tremendously just as she has been able to travel to Lagos State to restock her products.
She however lamented that, occasionally, task forces from either the Chanchga Local Government Council or the Niger State Board of Internal Revenue threaten to impound her vehicle over failure to remit levies and taxes to the government.
- Additional reporting by Subair Mohammed, Segun Kasali, Adelowo Oladipo, Ifedayo Ogunyemi, Michael Ovat, Marvellous Agbeje and Tolulope Olugbade
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