CEM REPORT, TRANSPORTATION | Experts have opined that the E-hailing transport sub-sector has helped to curtail the unemployment situation in the country.
Although they stressed that the government needs to provide an enabling environment to further flattened the unemployment curve in the country.
According to Kennedy Izuagbe, Chairman of Highflyer Investment Group of Companies, at the Executive Roundtable Discussion hosted by Continental Economic Magazine, graduate now provide the E-hailing service unlike before when it was segregated to the unlettered.
He continued that unlike other jobs, the E-hailing business is not so difficult to get into hence the influx of employed and unemployed graduates.
He further stressed that the E-hailing transport sub-sector will not completely flatten the unemployment curve but will help in reducing the unemployment population.
“The business of creating employment is mainly for the private sector, not for the government. The government is just to provide the enabling environment for private participation in business to thrive.
“It was in those days, you find only school dropouts driving yellow cabs all over the place but today, all over the world, not just in Nigeria, graduates, even PhD holders, now provide this service, because it’s so easy to get into; once you have a car, you make your money.
“The E-hailing business will not cure everything, it is only going to be able to help in some areas. And the advantage it has is it’s so easy to get involved.”
Izuagbe stated that Nigeria is yet to fully take advantage of the E-hailing transport sub-sector while noting that the sector is projected to be worth over $70 billion by the end of 2023.
“We are just scratching the surface as far as I’m concerned. As long as people will commute from one point to the other, that business will thrive. As long as people perceive the e-hailing service as a more secure way of commuting. It will thrive.
“Available statistics indicate that by the end of this year 2023, the business will be worth over $70 billion. And if you bring it home, Nigeria alone, we could be looking at about $500 million.”
On the sustainability of the sub-sector, Izuagbe noted that the E-hailing transport sub-sector is sustainable while calling on banks and investment bodies to look into other areas of the sub-sector.
He noted that banks need to look beyond car financing and explore the market deeply.
“There are also areas of investment that banks can come in. They shouldn’t just be looking at just financing a car, financing a car is just for me about 10% of the market. There are so many other components that banks can look into.
“I’m sure by the time we open the business up, where more banks will participate. And the processes are made easier. Funding is put in place, more attraction for both the users and the service providers, the market will deepen and more employment will be created.”
Executive Roundtable Discussion is a quarterly program hosted by Continental Economic Magazine (CEM), where experts discuss burning issues that affect the economy and proffers solution to them
The program is streamed live. Follow CEM on social media to stay updated on the next edition which will be bothering on the Hospitality Industry.