Economic Analysis of Commercial Motorcycling as a Mean of Poverty Reduction in Osun State, South-west, Nigeria

Abstract

The study examines the extent to which the involvement in the operation of commercial motorcycling has reduced poverty in the selected Local Government Areas of Osun State. The study relies solely on primary source of data gathered through the administration of questionnaires and the conduct of structured interview. The study population (4,824) comprises motorcyclists (4533), Market Women (54), Farmers’ Association (66) and Community Development Associations (181). The study adopts a multi-stage sampling procedure. In the first stage, all the 30 Local Government Areas in Osun State are stratified into 3 Senatorial Districts which are Osun West, Osun Central and Osun East. In the second stage, 1 rural Local Government Areas (LGAs) and 1 urban Local Government Area are purposefully chosen from the selected LGAs in each senatorial district making 3 rural LGAs and 3 urban LGAs. The study adopts sample size determination by Kreijc and Morgan (1990) which yields 357 respondents for questionnaire administration. The proportionate sampling is then used to select 207 respondents from selected urban LGAs and 150 respondents from rural LGAs. The study gathers evidences from the fieldwork that the main causal factor for engaging in commercial motorcycling is the prevalence of wide spread of poverty and unemployment. Using logistic regression analysis, the study finds that through the operation of commercial motorcycling, motorcyclists live above poverty line of $2.15 per day. The study finds that the commercial motorcyclists have been able to reduce poverty through the operation of motorcycling by meeting the three-square meal daily with their families; settlement of utility bills such as payment of electricity supply; payment of school fees of their pupils in that chronological order. The study however, finds that in an attempt for commercial motorcyclists to meet their personal daily needs of drinking alcohol like Beers, Whisky, ogogoro, pelebe and gin in their required quantities as determined by each motorcyclist increase the poverty level in Osun State. The study concludes that the operation of commercial motorcycling has reduced level of poverty among commercial motorcyclists in Osun State, Nigeria.