AT the heart of Bolade in Oshodi market on May 26, an area boy in a yellow apron with thick black stripes stopped to harass a micro-business owner en route to another part of the market in Lagos.

The micro-business owner had bought clothes and singlets in retail to resell in a nearby mini-market. And he had packed them in two nylon sack bags and put them in a wheelbarrow.

Like a bee to the honey, the area boy rushed to the wheelbarrow, standing in front of it to ensure that he was in charge.

‘Owo mi da” he demanded. In Yoruba, one of the three major languages in Nigeria, the expression loosely means “where is my money?”

“I paid someone not too long ago,” the business owner protested.

“That one no concern me, make you give me my money,” the now agitated area boy barked in pidgin English.

After eight minutes of haggling, the reporter observed that the micro-business owner parted with N100 before the area boy could allow him to go.

His co-area boys were around, watching closely at the scene.

By definition, micro-businesses are enterprises with one to nine employees and is started with a small amount of money.

They are big sources of employment and economic growth in Lagos, Nigeria’s richest state, but they are constantly harassed and exploited by non-state actors known as area boys,

Lagos boasts of 3.329 million micro-business and is the state with the highest number of this class of business, according to the 2019 survey conducted by the National Bureau of Statistics (NBS) and the Small and Medium Enterprises Development Agency of Nigeria (SMEDAN) covering 2013 to 2017.

Micro-business owners range from ice cream sellers moving in bicycles to food vendors in make-shift stalls.

Their start-up capital is usually N50,000, according to a report by the NBS/SMEDAN report.

“These kinds of business create a lot of jobs. One of them can create one, two, three jobs and the multiplier effect on the economy can be very strong,” former Acting Managing Director of the Bank of Industry Waheed Olagunju (now retired), who also headed the small business segment of the bank, once said at an event attended by the reporter.

By Olagunju’s estimates, these businesses could have created 6.66 million jobs or more in Lagos State with a record unemployment rate of 37.14 per cent –higher than the national average of 33.3 per cent in the fourth quarter of 2020, according to the NBS.

They are the smallest among the acronym, MSMEs, others being small and medium enterprises, but they create 95 per cent of jobs, according to the 2019 NBS/ SMEDAN survey.

Because they cannot afford to rent standard shops, they operate in make-shift shops, open spaces, kiosks and sometimes move around with their products.

However, areas boys are on the streets, major markets, open places in Lagos lying in wait for these micro-businesses which operate in the informal sector of the economy.

In simple terms, area boys, also known as agberos or touts, are non-state actors who harrass businesses and collect mostly illegal taxes from them.

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Shops are expensive

According to The ICIR findings, rents for shops in Oshodi and its environment go as high as N2 million (nearly $4900) for a year. Cheapest shops are rented at N800,000 (nearly $2,000) per annum, findings show.

Many micro-businesses in Lagos cannot afford them as the majority operate with capital base of N50,000.

In Isolo LCDA, half a shop goes as high as N300,000 while full shops are rented out at N600,000 per year.

“That is if you will even see one in places like Ajao Estate or Aswani. I cannot afford to pay N300,000 or N400,000,” Angela, who sells confectionery in retail, said.

She told The ICIR that her capital base was N80,000 and she could not even afford quarter of a standard shop in Isolo.

The situation is same in other parts of Lagos, where high cost of rents has driven micro businesses into the streets and open places.

In Ikeja, particularly at Otigba Cluster, shops go as high as N1.2 million-N3 million, depending on their sizes. according to findings.

“This is why you see a lot of people outside the shops, because they can’t afford to rent them here,” Stella, who sells phone accessories at Oguniyi Community Development Association in Computer Village, said.

“Getting a space in open places here is not easy. You have to pay three groups of area boys, local government, and market leaders to give you a portion. If you do not have more than N100,000, don’t even start.

“However, as you can see, there is even no more space for any new person,” she further said.

She noted that many micro traders were now being allocated shops at the edges of the roads and around Medical Road in Ikeja, contrary to the Computer Village master plan.

Similarly, shops at Lagos Island areas are also expensive for micro traders. At CMS, Lagos Island East, shops go as high as N500,000 to N700,000, forcing many micro businesses to display their wares indiscriminately, The ICIR found.

READ MORE HERE: https://www.icirnigeria.org/lagos-micro-businesses-in-the-grip-of-area-boys/

Tinubu handed Lagos to touts to secure his re-election then godfatherism.
Now touts are now an official part of the Lagos state government machinery.
In sympathy with the Lagos government,touts are now also part of the official government apparati in many states in the SouthEast and South South.

Their CEO is in a US hospital writhing in pains after which he will be arrested.

Their reign's end is almost near.

a lot of things wrong with this country. The chances of succeeding for the citizens are being met by obstacles from here and there.

Na wa oo

When is lagos state going to pass a law to ban these people? They won't because those boys work for them

Grace dey for the month ahead
Come to church tomorrow