It was reported in July last year that about 4,000 decrepit vehicles abandoned on Lagos roads were awaiting evacuation.
More than one year later, hundreds of thousands of unserviceable vehicles, at different stages of decay, still litter the streets of the Centre of Excellence.
With the country neck deep in the importation of used vehicles, thousands more will become dilapidated over time.
Statistics produced by the Equipment Leasing Association of Nigeria (ELAN) showed that Nigerians spend up to $5 billion every year importing vehicles from the United States, Canada, Europe, and Asia; 67 per cent of them second hand.
500,000 vehicles demanded yearly
According to Alfred Okugbeni, Managing Director/Chief Executive Officer of Nigeria Sinotruck, a member of ELAN, vehicular demand in Nigeria is about 500,000 per year. What happens when these vehicles are no more serviceable?
Disposal becomes a challenge, not only to the owners but also to state governments, such as Lagos, which is working hard to maintain a clean, habitable environment.
The Lagos State government has invested billions of naira to set up a steel crushing plant in Oshodi, and another in Shalla, Epe.
Scrap vehicles dot every nook and cranny of the state. But specialists in evacuation of such vehicles under the umbrella of All Motors Parts Dealers’ Association (AMPADA), have come to the rescue.
Ikechukwu Abalunam is the Chairman of AMPADA, which carries out its business opposite Pako market, by Volkswagen, Mile2-Badagry Expressway.
He and his colleagues buy derelict vehicles, dismember them, sort out valuable parts for sale, and sell the metals to metal processors and junk yards.
Motivation and start up
Abalunam quit driving bus in Lagos about two years ago to deal in scrap vehicles, after realising that genuine spare parts were difficult to get.
The market was saturated with Chinese products and customers were at the mercy of substandard products. He saw a business opportunity in the scarcity of genuine parts.
“Customers want genuine parts that can give them value for money. So our motivation for the business is underscored by two major reasons: provide great value out of decrepit vehicles.
“The dismembered parts are a source of genuine spare parts for good vehicles. The carcasses are crushed and recycled for the manufacture of steel products.
“So the economic value of the scrap vehicles may not be maximised if the entire vehicle is crushed in a recycling plant,” Abalunam explained.
He said N200,000 is enough for a beginner to rent a shop and buy one or two scrap vehicles to start with.
Value in rickety vehicles
Every point in the life of a vehicle presents an opportunity for smart entrepreneurs to make money. Enterprising men are making a fortune from growing the second vehicles business and complementary goods and services.
“It may not make you a millionaire overnight but you can be sure of meeting your family obligations, guarantee your family a modest living and education. These are of utmost importance,” Abalunam said.
The second hand spare parts market is more popular in Nigeria than the one for new parts. Many prefer to buy used parts sourced from scrap vehicles because they are cheap, perceived as genuine, and often durable when they come in good condition.
Used engines are one of the most valuable items of spare parts for the sprawling Lagos automobile market. The carcasses of abandoned vehicles are recycled by industries that use iron and steel as raw materials for new products.
Different types of scrap metal fetch varying prices. Aluminum alloys are more lucrative due to higher demand.
Although steel is more common and makes up a significant portion of all scrap metals, alloys – like aluminium, copper, and brass – fetch more money per kilogramme, depending on the condition.
Rule of the trade
Strict rules have been put in place to guide AMPADA members against illegitimate transactions. They are made to certify the ownership dilapidated vehicles before payment, Abalunam said.
Anyone, dealer or seller, who fails to certify ownership before sale is handed over to law enforcement agents for theft.
“These are some of the guiding rules we have put in place for sanity in the business. We want to make sure there is orderliness. We want to make sure members do not patronise thieves, and by so doing steer clear of theft charges that can send all of us out of business.
“Where a prospective seller is no longer in possession of original documents of the vehicle, he must swear to an affidavit and attach personal photograph, a copy which must be given to the police as evidence of ownership.”
Ridding Lagos of scraps
To rid Lagos of scraps, members of AMPADA urged residents to dispose of their unserviceable vehicles abandoned on roads and streets.
They argued that it does not make economic sense to keep decrepit vehicles that are no longer valuable, as vehicles rotting away in open sight cast a slur on the beautification effort by the state government.
The major concern of the dealers is the quit notice served on them by the government to make way for road construction.
They added, however, that efforts are in an advanced stage to get a new location for their business and would move as soon as construction work gets closer to the present site.