Nigerian taxi ban hits commuters

The BBC reports that the capital city of Nigeria has banned the use of motorcycles for taxis:

The high profile minister in charge of the city of three million, Nasir el-Rufai, has cracked down on the motorbikes for two main reasons, he says.

Accident rates involving motorbike taxis are very high and the authorities have also become increasingly frustrated with the number of motorcycles being used as getaway vehicles in armed robberies across the city.

The decision has angered many who considered the motorcycle taxis worth the risks that are cited by the government:

A frustrated Adamu Mohammadu, waiting for a minibus at an Abuja street corner, complained there had been no consultations before the ban was announced.

“If you want me to appreciate that type of decision, carry me along; seek my view before you decide on my behalf. If they are really protecting my interest, they should return those okada boys to the streets,” he said.

First, this is undoubtedly due to the externality of the accidents and robberies. If the frequency of these two are not sufficiently high to be a worry to the average commuter then they should not be expected to automatically be sympathetic to a regulation that has a clear downside. Second, the giant increase in demand for other forms of public transportation has not been handled well, causing further slow-downs and spike in prices.

This is an excellent example of how trying to reduce one type of risk can ultimately lead to an increase in others, as well as the difficulty in generating support for addressing external risks (e.g. someone else in an accident or robbery). And so I am certain many people in Nigeria will ask whether the frequency/severity of the accidents and robberies (and insurance or other costs?) will decline enough to offset the frequency/severity of inconvenience to commuting without motorcycle taxis.

Perhaps rather than an outright ban (preventive measure), the government should have sought less intrusive strict regulation of identity and licenses or even partnered with the private sector to require a higher-level of insurance (detective measure). If nothing else, they certainly should have better anticipated the economic and social fall-out from blocking a heavily used form of transportation.

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