Name

UKWUEGBU, ANTHONY CHIJIOKE

080203107

TOPIC

THE IMPACT OF QUALITY

MANAGEMENT, ON THE PROFITABILITY

OF THE NIGERIAN ROAD TRANSPORT

INDUSTRY (A CASE STUDY OF DANFO

BUSES).

SUPERVISOR:

DR E. O. OYATOYE.

THE IMPACT OF QUALITY MANAGEMENT ON THE

PROFITABILITY OF THE NIGERIAN ROAD

TRANSPORT INDUSTRY.

(A CASE STUDY OF DANFO BUSES).

A FINAL YEAR PROJECT REPORT SUBMITTED TO THE

DEPARTMENT OF BUSINESS ADMINISTRATION,

FACULTY OF BUSINESS ADMINISTRATION,

UNIVERSITY OF LAGOS, NIGERIA.

IN PARTIAL FULFILLMENT OF THE REQUIREMENT FOR THE

AWARD OF THE DEGREE OF BACHELOR OF SCIENCE (HONS) IN

BUSINESS ADMINISTRATION.

BY

UKWUEGBU, ANTHONY CHIJIOKE

080203107

OCTOBER, 2012

CERTIFICATION

This is to certify that the contents of this project are commensurate with and representative of the

work done by UKWUEGBU, ANTHONY CHIJIOKE during the course of his final year project

under my supervision.

…………………….. …………………..

Supervisor Date

DR. E. O. OYATOYE

……………………… …………………..

Head of Department Date

DR. O. KUYE

DEDICATION

To Almighty God, the Author and Finisher of my fate.

ACKNOWLEDGMENT

My heart-felt gratitude goes to YOU for picking up this report. I hope you find it useful in your quest

to transform our society.

ABSTRACT

The main focus of this project is to reveal the impact of quality management on the profitability of

the Nigerian mass transport industry.

In order to achieve the aim of this study; attributed quality management factors like maintenance,

accessibility, availability, safety, customer satisfaction and price were investigated. To this end, the

Lagos Danfo drivers were chosen as the body of study. For a purposeful study to be conducted, some

relevant books and research by many authors were reviewed. Research questions were formulated to

avoid any form of deviation from the main purpose of the topic. The use of questionnaires was

employed to gather the information needed from the respondents. This information was then

analysed using Spearman’s correlation to determine the type of association between the hypotheses.

The study revealed that the application of quality management to the Nigerian mass transport

industry would indefinitely boost their profitability.

TABLE OF CONTENTS

1. Introduction ...................................................................................................................................... 10

1.0 Background to the study ........................................................................................................ 10

1.0.1 Origin of Mass Transport in Lagos state .................................................................... 11

1.1 Statement of the problem ...................................................................................................... 12

1.2 Objective of the study ............................................................................................................ 13

1.3 Relevant research questions ................................................................................................. 14

1.4 Statement of hypothesis ........................................................................................................ 14

1.5 Significance of the study ......................................................................................................... 15

1.6 Scope of the study .................................................................................................................. 16

1.7 Limitations of the study .......................................................................................................... 16

1.8 Definition of terms .................................................................................................................. 17

2. Literature Review ............................................................................................................................ 18

2.0 Introduction ............................................................................................................................ 18

2.1 Historical background of the Lagos Danfo service ................................................................. 19

2.2 Impact of Quality Management ............................................................................................ 20

2.2.1 Quality Management and Organization of the Transport industry .......................... 23

2.2.2 Quality Management and Training of personnel ...................................................... 24

2.2.3 Quality Management and Procurement and Financing ............................................ 25

2.2.4 Quality Management and Unions .............................................................................. 26

2.2.5 Quality Management and Maintenance .................................................................... 26

2.2.6 Quality Management and Customer Satisfaction ..................................................... 27

2.3 Quality framework for mass transport .................................................................................. 28

2.3.1 Availability ................................................................................................................. 30

2.3.2 Accessibility ................................................................................................................. 30

2.3.3 Affordability ................................................................................................................ 31

2.3.4 Information ................................................................................................................. 31

2.3.5 Time ............................................................................................................................. 32

2.3.6 Customer care ............................................................................................................. 32

2.3.7 Comfort ....................................................................................................................... 33

2.3.8 Security ....................................................................................................................... 33

2.3.9 Environment ............................................................................................................... 34

2.4 Profits ...................................................................................................................................... 34

2.5 Summary ................................................................................................................................. 36

3. Theoretical Framework and Research Methodology .............................................................. 37

3.1 Theoretical framework ........................................................................................................... 37

3.2 Research design strategy ........................................................................................................ 39

3.3 Sources of data ........................................................................................................................ 39

3.3.1 Primary data ............................................................................................................... 40

3.3.2 Secondary data ........................................................................................................... 41

3.4 Research instruments ............................................................................................................. 41

3.5 Research population .............................................................................................................. 42

3.5.1 Determination of sample size .................................................................................... 42

3.6 Restatement of research questions ...................................................................................... 43

3.6.1 Restatement of hypothesis ........................................................................................ 43

3.7 Conduction of the field work .................................................................................................. 44

3.5 Limitation of methodology .................................................................................................... 44

4. Data Presentation and Analysis .................................................................................................... 46

4.0 Introduction ........................................................................................................................... 46

4.1 Presentation of Data ............................................................................................................... 46

4.1.1 Response rate by location .......................................................................................... 46

4.1.2 Response rate by Age category .................................................................................. 47

4.1.3 Response rate by Sex of Respondent ......................................................................... 47

4.1.4 Years of experience .................................................................................................... 48

4.1.5 Highest educational qualification attained ............................................................... 48

4.1.6 Do you own a Danfo ................................................................................................... 49

4.1.7 Source of Financing .................................................................................................... 50

4.1.8 How many days of the week do you work ................................................................ 50

4.1.9 How long do you work every day ............................................................................... 51

4.1.11 What is your busiest time of the day ........................................................................ 52

4.1.12 What do passengers usually demand for................................................................... 53

4.1.13 Do you have a specific conductor .............................................................................. 53

4.1.14 How long have you been with this conductor ........................................................... 54

4.1.15 How much fuel do you buy everyday ........................................................................ 55

4.1.16 How much do you make every day after expenses ................................................... 55

4.1.17 Would you accept a loan to expand your danfo business ........................................ 56

4.1.18 How often do you do maintenance ........................................................................... 57

4.1.19 On average how much do you spend on the maintenance of the bus ..................... 57

4.1.20 Which union do you belong to ................................................................................... 58

4.1.21 Who gives you the most worry .................................................................................. 59

4.1.22 How often have you been harassed by the Police/Lastma/VIO ............................... 59

4.1.23 How much do you have to pay to the police to let you go ....................................... 60

4.1.24 How much do you have to pay to Lastma/VIO to let you go .................................... 61

4.2 Test for Hypothesis ................................................................................................................. 62

5. Summary Conclusion and Recommendation ............................................................................ 64

5.0 Summary of Findings ............................................................................................................. 64

5.0.1 Operational Problems................................................................................................. 64

5.0.2 Fragmentation of the industry ................................................................................... 64

5.0.3 Literacy Level .............................................................................................................. 64

5.0.4 Union Activities ........................................................................................................... 64

5.0.5 Activities of Police/Lastma/VIO ................................................................................. 64

5.1 Conclusion .............................................................................................................................. 65

5.2 Recommendations ................................................................................................................. 65

6. Appendix ............................................................................................................................................ 67

6.1 Questionnaire Form ............................................................................................................... 67

6.1.1 Part A: Bio-Data .......................................................................................................... 67

6.1.2 Part B: Work specific ................................................................................................... 68

6.1.3 Part C: Industry specific .............................................................................................. 69

6.1.4 Part D: Person specific ................................................................................................ 71

7. References .......................................................................................................................................... 72

CHAPTER ONE

INTRODUCTION

1.0 Background to the study

Of all the modes of transportation in Nigeria, road transportation handles the largest volume

of traffic in terms of users, weight and distance covered. Despite the importance of this, very

little research has been done on the impact of quality management in the road transport

industry. Presently in Lagos state, there is no effective organised mass transportation business

as it is in other developed cities like Hong Kong, London and New York to cater for the

transportation needs of the state. The management of this industry has been left at the hands

of the uneducated and the industry’s ownership structure is too fragmented. Various unions,

Nigerian Union of Road Transport Workers (NURTW), Nigerian Association of Road

Transport Owners (NARTO), and Road Transport Employers Association of Nigeria

(RTEAN) have sprang up to arrest these decay, but they too are plagued by the same evils –

low level of education, low quality management and political infighting. The government has

set up numerous regulatory agencies – Federal Road Safety Corps (FRSC), Lagos State

Transport Management Authority (LASTMA) and Kick Against Indiscipline (KAI) – but

these agencies stifle the industry’s profitability as they seek to generate revenue for the

government.

According to Rose (2005), Quality Management aims to ensure that an organization or

product is consistent. According to Peter and Waterman (1982), quality management focuses

on service quality and the means to achieve it. The objective of quality management is to

deliver consistent customer satisfaction by allocating resources in an effective and efficient

manner in order to realise optimal profit. Quality management has its root in Japan in the

1950s, when with the help of Shewhart, Deming and Juran, amongst others the Japanese

government sought to increase the demand for its good by creating superior and consistent

quality products.

There are three (3) basic management styles in the Lagos mass transport industry – The

‘Individual Ownership structure’ were a danfo driver owns and operate his own bus; The

‘Quasi-corporate structure’ were an Individual owns a fleet of about four (4) buses, sub-

leases them to different drivers who pay him a daily rent but the driver takes care of fuelling

but not the maintenance of the vehicle; and The ‘Corporate structure’ were a company owns,

maintains and operates its own buses while the bus drivers are just staffs of the transport

company. The Individual Ownership style is predominant in Lagos resulting in a haphazard,

un-patterned and non-effective mass transport industry.

In business, profit can be considered to be the difference between the revenue and the costs of

bringing to market whatever it is that is accounted as an enterprise. In this context,

profitability is the difference between the revenue and the cost incurred in delivering the

transport service. Profitability is a very elusive term to define. The transporters could measure

it in terms of Gross profit, Net profit, Return on Assets, Return on Investments, Market share

increases, revenue increase, and more. This research focuses on how quality management can

help mass transport operators maximise profit, i.e., operate at the point where the difference

between the total revenue and total cost is at its greatest (Lipsey, 1975).

1.0.1 Origin of Mass Transport in Lagos state

The history of publicly owned mass transport service within the Lagos Metropolitan Area has

been a very chequered one. With the take-over of the former Zarpas Bus Service by the

Lagos State Transport Corporation (LSTC) in the 1970s, total annual passengers carried by

the Corporation fluctuated from 90 million in 1978 to 53 million in 1983, 76 million in 1989

and less than 60 million in 1992 (The Guardian, 1994). Consequent upon the riots following

on the initiation of the structural adjustment programme in 1989, the Federal Government

introduced the Mass Transit Scheme. Under the scheme, buses were distributed to states,

including Lagos, to assist in both intra-urban and interstate transportation. The Lagos State

Government itself in 1991 bought some 90 buses and leased these to private operators to help

ease the acute transportation problem. Other bus operations were sponsored by local

governments within the metropolitan areas but the capacity they provided hardly equalled

more than half of that provided by the LSTC. However, given the general inefficiency and

corruption with which the LSTC operated, resulting in frequent breakdown of its buses, the

Corporation was dissolved in 1993 and its staff laid off. Molues and danfos which are

privately owned mass transit buses won the battle to transport Lagosians en-masse.

1.1 Statement of the problem

First, the operational problem will be considered – the danfo drivers’ fragmented

management pattern were different individual drivers own, operate and maintain their own

buses. Instead of one were a company owns a fleet of buses, maintains it, while the drivers

are just staffs of the company. Thus, the present informal and fragmented management style

doesn’t allow them to enjoy economies of scale.

Secondly, most of the danfo drivers are illiterates barely finishing primary schools. Though

they might be smart at collecting their transport fares, their literacy level hinders effective

level of communication with their customers. Because of this, they hardly deliver qualitative

services. Another consequence of their low literacy level is the overheads they carry. The

Danfo drivers engage in unproductive activities like drinking, sleeping around, and partying.

All these unnecessary overheads reduce their profitability.

Another problem that they face is that of Agbero’s (touts) who collect tolls from the danfo’s

at strategic locations. Collecting these tolls hampers the speedy movement of theses buses

and drivers who protest payment have one or two parts of their danfo’s forcefully removed.

The danfo driver thus incurs an unnecessary and greater cost to replace the damaged part.

Not having a standard price per journey like the BRT system causes too much delay as

passengers would have to constantly keep haggling over transport fares every time he or she

boards a danfo. This haggling leads to time wastage and high customer dissatisfaction.

Finally, the general problem of bad roads, non-availability of spare parts, government

regulation and so on would be given little attention in this research. Even though their effects

are wide spread, the danfo driver has very little control over them and their effect on the

danfo drivers’ short term profitability is very limited.

1.2 Objective of the study

The primary purpose of this study is to examine the impact of quality management on the

profitability of the Nigerian road transport industry. This will help to create a formal study in

the chosen area thereby improving the quality of service rendered by road transporters. The

objectives of the study are therefore itemised as:

1) Develop a management model that will be useful, understandable and applicable by

the danfo drivers.

2) Measure the profitability level of each individual danfo.

3) Properly motivate drivers and conductors to deliver superior services to customers

(passengers).

4) Harmonize Union and regulatory agencies activities to work optimally so that

profitability is increased.

5) Improve customer satisfaction through superior service delivery.

1.3 Relevant research questions

This project would take both a participatory and questionnaire approach. Participatory in the

sense that for one (1) month I will have to immerse myself with the danfo drivers – their ways

of life, typical business day, their unions and its activities in order to give this project depth,

content and relevance to their various needs. The relevant research questions would include:

How is the present profitability level of each individual danfo measured?

How can the driver and conductors be motivated to deliver superior services to their

passengers (customers)?

How can Unions and other regulatory agencies be harmonised for optimal

performance and for increased profitability of the danfo drivers?

How can customer satisfaction be improved and superior services delivered?

1.4 Statement of hypothesis

The following hypothesis will be raised in an effort to develop the finding about the variables

that relates.

: There is no correlation between how regular maintenance is done on the vehicle and the

profit of the drivers.

There is correlation between how regular maintenance is done on the vehicle and the

profit of the drivers.

HB0: There is no correlation between the amount spent on maintenance and the profit of the

drivers.

HB1: There is correlation between the amount spent on maintenance and the profit of the

drivers.

1.5 Significance of the study

This study is relevant because it seeks to provide quality management strategy guidelines and

implementation procedures that would lead to the attainment of optimal profitability within

the danfo industry.

This study would also serve as a verifiable source of information for High Net-worth

Investors (HNIs), business organisations and the government on how they can profitably

channel their investments into the mass transportation industry.

Finally, the major beneficiary of an efficient and effective transport system is the economy.

The economy benefits in the form of increased access to opportunities for achievement,

employment, goods and services; reduced cost of doing business; economic expansion;

efficient allocation of scarce resources; higher profitability; increased service delivery and

many more. The economy is just a broader term for the Customers (users of the transport

services), producers (providers of the transport services) and the ever present Government

(regulators of the services).

1.6 Scope of the study

The scope of this study is within Nigerian and Lagos state in particular as a case study,

though references would be made to other parts of the world. My research is purely based on

the Lagos danfo drivers in Ikorodu, Ikeja, Yaba, Oshodi and Obalende. My aim is to verify

the impact of quality management on their profitability and how we can maximise this.

To gather a qualitative sample, I intend having from my respondents at least 5 officials from

FRSC, 5 officials from LASTMA, 5 officials from LAMATA, 5 officials of The Nigerian

Police Force, 10 danfo drivers, 10 conductors and 50 danfo passengers from each of the

major transportation hubs of Ikeja, Ikorodu, Obalende, Oshodi and Yaba. This will generate a

total respondent size of 450. With this diverse range of respondents, this research would serve

its purpose of determining the quality management approach that will increase danfo driver’s

profitability.

1.7 Limitations of the study

Much as I would want this project to be hitch free, various problems are expected to rear their

heads. First would be limited finances which are expected to constrain my visitation and

participation in this research, but with the limited finances, I will conduct and in-depth

research that would more than suffice.

Time could be another limitation. I intend overcoming this by doing a large part of this

project during the first semester break and sacrificing some of my ‘friend time’. Another

limitation expected would be the ridicule provided by friends and family. The self-belief that

nothing good comes easy would keep my spirit strong.

The fact that the industry is heavily fragmented would make my research clumsy and

difficult. I intend interviewing a fair and qualitative sample of the major players in this

industry from the drivers, conductors, regulators and passengers. I also intend immersing

myself in their activities for at least a month.

Finally, the low literacy level of my respondents and their attendant fears could limit my

research. This I intend overcoming by learning their predominant Yoruba language and

communicating with them in Pidgin English.

1.8 Definition of terms

Agbero’s: Any member of either of NURTW, RTEAN or NARTO that doesn’t own or

operate a danfo but instead stays at either the motor parks or bus-stops to collect tolls from

the danfo drivers.

BRT: Bus Rapid Transit. A transport option, which relies on the use of dedicated

‘interference’ free segregated lanes to guarantee fast and reliable bus travel.

Conductor: One who assist the danfo drivers in operating their danfo’s by calling passengers

to enter into the danfo, collecting passenger transport fares, brings to the drivers notice

whenever a passenger has reached his/her destination, pays any tolls or charges incurred by

the danfo and performs other activities for the smooth running of the danfo.

Danfo: A shared mini-bus transport service with a capacity of fourteen (14) passengers that

commutes passengers across the Lagos metropolis.

Danfo drivers: Anyone who drives a danfo across the Lagos metropolis.

FRSC: Federal Road Safety Corps. A federal government transport regulator mandated to

ensure that safety on the road is strictly adhered to and to address any safety concern.

LAMATA: Lagos Metropolitan Area Transport Agency. The Lagos state government owned

transport operator providing shared passenger transport services through BRT, and the

proposed light rail project.

LASTMA: Lagos State Transport Management Authority. A Lagos state government

transport regulator mandated to ensure that safety on the road is strictly adhered to and to

address any safety concern.

Molues: An older version of the shared bus services popular in Lagos in the 80’s with a

capacity of 48 sitting and 50 standing passengers.

NARTO: National Association of Road Transport Owners. An association for the owners of

commercial transport owners.

NURTW: Nigerian Union of Road Transport Workers. The largest umbrella body for owners

of danfo, danfo drivers and conductors in Nigeria that aims to solve issues affecting the

industry.

Passengers: Customers and users of the shared bus transport services.

Quality management: An efficient model of operating the danfos with the customer as the

focus point in order to optimise safety, comfort and profit.

RTEAN: Road Transport Employers Association of Nigeria. An association for owners and

employers of danfos.

VIO: Vehicle Inspection Office. An organ of the Lagos state government that regulates the

activities of public transport in Lagos.

CHAPTER TWO

LITERATURE REVIEW

2.0 Introduction

This chapter will outline past studies related to the topic. The researcher will be able to

highlight the impact of quality management on the profitability of the Nigerian mass road

transport industry. Also, the empirical literature and theoretical framework will be defined to

suit the purpose of the research work.

2.1 Historical background of the Lagos Danfo service.

The history of publicly owned mass transport service within the Lagos Metropolitan Area has

been a very chequered one. With the take-over of the former Zarpas Bus Service by the

Lagos State Transport Corporation (LSTC) in the 1970s, total annual passengers carried by

the Corporation fluctuated from 90 million in 1978 to 53 million in 1983, 76 million in 1989

and less than 60 million in 1992 (Oni, Okanlawon and Asenime, 2006). Consequent upon the

riots following the initiation of the Structural Adjustment Programme in 1989, the Federal

Government introduced the Mass Transit Scheme. Under the scheme, buses were distributed

to states, including Lagos, to assist in both intra-urban and interstate transportation. The

Lagos State Government itself in 1991 bought some 90 buses and leased these to private

operators to help ease the acute transportation problem. Other bus operations were sponsored

by local governments within the metropolitan areas but the capacity they provided hardly

equalled more than half of that provided by the LSTC. However, given the general

inefficiency and corruption with which the LSTC operated, resulting in frequent breakdown

of its buses, the Corporation was dissolved in 1993 and its staff laid off. Molues and danfos

which are privately owned mass transit buses won the battle to transport Lagosians en-masse.

While it is true that transport management has been a sadly neglected subject in the past, the

matter has now taken a turn in the eyes of the Lagos state government. The government has

realised that in order to achieve its megacity status, it must have a qualitatively managed

transport system. Lately, it has introduced the BRT service, Mega-city Ferry service, Cab

service and the proposed Light rail service to the commercial transport industry to increase

the transportation options available to Lagosians.

2.2 Impact of Quality Management

The concern for quality has a long and rich history, extending back to artisans and craftsmen,

when master tradesmen inspected the work of apprentices to ensure quality craftsmanship.

The introduction of mass production at the beginning of the 20th century was the dawn of a

new age. The high numbers of poorly made and non-interchangeable parts, breakdowns, and

loss of sales because of unreliable products forced companies to make improvements.

Initially, quality management was a manufacturing concept intended to ship non-defective

products. It was the viewpoint of G.S. Radford that inspectors should examine, weigh, and

measure each item prior to its leaving the factory. Inspection, measurement, and statistical

analysis were the early foundations of quality control. Mistakes were not necessarily

prevented, but they were not shipped. Inspection became an industrial safety net.

Quality management advanced, largely, through the writings and teachings of so-called

Quality Pioneers or TQM gurus. The pioneers focused on quantitative techniques and

methods to control the quality of manufactured products. From its beginnings at Bell

Laboratories, TQM evolved and developed while the most renowned pioneers created and

promoted the philosophy. Five of the more notable proponents and leaders of TQM are

Williams Edward Deming, Joseph Juran, Kaoru Ishikawa, Armand Feigenbaum, and Philip

B. Crosby.

While various experts differ with each other in specific areas, a review of TQM principles

espoused by experts identified the following areas of general agreement:

TQM is a fundamental change in how most enterprises manage their business. The

change is difficult and takes time.

Management must lead the total quality initiative.

All employees must be involved in total quality management.

Continuous quality improvement is a business imperative.

Quality control and improvement apply throughout the organization.

Ongoing education and training are essential for all employees.

Quality requires an environment of teamwork, respect for the individual, trust, and

professional growth.

Quality has a double benefit. It increases customer satisfaction and revenue by

improving the quality of products and services; it reduces costs by improving the

quality of processes.

Quality management is an organisation-wide approach to understanding precisely what

customers need and consistently delivering accurate solutions within budget, on time and

with the minimum loss to society (Chartered Quality Institute, 2012). Quality management

refers to all activities of the overall management function that determine the quality policy,

objectives and responsibilities, and implement them by means such as quality planning,

quality control, quality assurance and quality improvement within the quality system (ISO

8402). The ultimate objective of quality management is to deliver consistent customer

satisfaction by allocating resources in an effective and efficient manner in order to realise

optimal profit (Rose and Kenneth, 2005). To deliver consistent superior services in the danfo

industry, all functions involved in the service delivery need to contribute their own quota –

from the organisation of the danfo industry, to the capacity of personnel available, to the

financing options available for vehicle procurement, to the Unions that represent the industry

and down to the maintenance culture in the industry. All these factors have an influence on

the quality of management and thus overall profitability that can be generated by the Nigerian

mass road transport industry.

Quality management in the transport service has now taken a new turn. Everything is now

being done to enforce this standard in the transport industry, to the point that an entirely new

faculty – School of Transport, at the Lagos State University has been created to meet the

manpower needs of the transportation industry in Lagos State. Quality management in the

mass transport industry is not different form its counterparts in other industries. The role of

quality management in the Nigerian road transport industry is to promote comfortable and

flexible interaction through accessibility between places and people and therefore aid the

economic development of Nigeria. It is widely acknowledged that transport has a crucial role

to play in economic development (Curt Carnemark, Jamie Biderman and David Bovet, 1976).

Thus transportation is a connector that aids the economic advancement of any given nation.

This is more evident when one looks at the 2011 budget, which allocates N 55,954,636,803 to

the Ministry of Transport (Nigeria Bureau of Statistics, 2011). But the transport industry can

only play a leading role when the industry is effectively managed – in terms of organisation,

personnel, financial resources, regulation, etc. The success of the Asian tigers has been

hinged on the investment made by their respective countries. Weisbrod and Reno (2009)

explains that for every $1 dollar invested in mass transport industry, $4 is generated in

economic growth. In 2000, Zeithaml Valerie conducted a research to prove the existence of a

positive correlation between the aggregate profitability generated by an industry and the

quality of management present in that industry.

2.2.1 Quality management and Organisation of the transport industry.

For any big business like the transportation industry to achieve a high level of profitability,

there needs to be a well-structured organisation set-up to manage its operations. Take the

Nigeria banking industry circa 2004, there were 89 banks each controlling a small but

significant market share of the industry (Central Bank of Nigeria Financial Publication,

2004). Prior to 2004, none of the banks had ever made a profit in excess of $100m in any

given financial year, but they still thrived. Just three years after the consolidation, in 2008,

five of them (First Bank, UBA, Zenith, Union and Intercontinental Bank) made profit in

excess of $100m.

The rationale was that a number of banks were made to consolidate and merge their

operations. The Lagos danfo service can also be induced to consolidate. Consolidation allows

an industry to earn a higher profit, to increase revenue and achieve low cost. With twenty (20)

danfos being the minimum number of fleet one must have before one is given the licence to

operate a mass transport service in Lagos. The owners of these fleets would have to employ

managers, drivers, mechanics, and support staff to boost the efficiency of their danfo venture.

As they compete to boost their profitability, they would deliver consistent customer

satisfaction and thus entrench the principles of quality management in the Nigerian mass

transport industry. Heskett (1994) developed the service profit chain which hypothesizes that:

“Customer satisfaction --> Customer loyalty --> Profitability”

His findings support the theory that customer satisfaction is related to customer loyalty,

which in turn is related to profitability (Heskett et al., 1994).

2.2.2 Quality Management and Training of personnel

In 2001, the French Ministry of Transportation (CERTU) in collaboration with the Obasanjo

regime conducted a research and concluded that one of the most undeveloped skills in the

Nigerian Urban Passenger Transport sector is the Human Resource factor. The average

educational attainment of a danfo driver is JSS3 or Basic 9, this could be far worse in some

Local governments. Most drivers aren’t fluent in English, resorting to their native Yoruba

language or the street “Pidgin English”. Because of this, many passengers find it difficult

communicating with the danfo drivers, thus customer satisfaction becomes terribly low.

Heskett et al (1994) has shown a positive correlation between customer satisfaction and profit

margins of businesses.

With increased training of personnel, the mass transport industry would become more

professional. Chartered Institutes could even develop around the transportation industry. With

this, passengers would be able to measure the level of safety and quality of service they

would get on boarding a bus. Take the Chartered Institute of Personnel Management (CIPM)

as a reference point, everyone knows that a Fellow of the Institute (FCIPM) is expected to

deliver superior service when compared to what an Associate (ACIPM) would, an Associate

of the Institute is expected to still deliver superior service compared to an ordinary Member

of the Institute (MCIPM). Increase in professionalism would serve as a measure of service

delivery and is usually a basis for service differentiation in order to charge premium prices.

It is also very important to train the drivers of the danfo on basic mechanic functions, safety,

customer relations and other relevant operational skills regularly, to increase the operating

lifespan of the danfos’ and increase the safety of passengers. If you train the driver, you have

changed his habit and response to situations. The Lagos State government has set up Drivers’

Institute (Lagos State Drivers’ Institute) with centers each in five selected districts of the

state i.e. Ikorodu, Badagry, Ikeja, Lagos and Epe with the aim of:

retraining of all professional drivers in the State

Standardizing the driving profession in the State.

registering and creating a database for all professional drivers in the State

2.2.3 Quality management and Procurement and Financing

Virtually all vehicles used for the danfo service are self-purchased and procured second-hand.

The drivers who can’t afford the initial start-up cost of a danfo lease from an “Oga” who has

more than one danfo. Volkswagen Varagon - adjusted with some fittings, is the most

preferred vehicle brand for danfo because of its engine ruggedity, passenger carrying capacity

(it can seat up to 13 passengers) and ease of manoeuvrability. The initial start-up cost for a

Second-hand Volkswagen 1993 Varagon model is N700,000, inclusive of taxes and

registration fees. Financing options by the commercial banks is very limited to the danfo

industry, mainly because of the fragmented nature of the industry and as such danfo drivers

are force to depend on their personal savings, family savings, friend’s loans, and Sherlock

moneylenders. The Microfinance banks that consider lending to this industry, charge 6%

interest rate per month on a reducing balance (Moses-Ashike , 2012).

Empirical research supports entrepreneurs’ views and indicates that lack of finance is

negatively correlated with SME firm growth (Ayyagari and Demirgüç-Kunt, 2007). The

Lagos danfo industry emphasises his research. Commercial banks are more willing to lend to

industries with minimal risk exposure. Cheap external financing is one of the foundations on

which quality management is built. To deliver consistent superior services, organisations

must have access to adequate financial resources.

2.2.4 Quality management and Unions

NARTO, NURTW and RTEAN are the major unions representing the danfo industries. These

unions are basically employee unions. Employee unions, in this context, are trade unions

which are more concerned with the welfare of their members rather than the maximisation of

industry gains. NARTO, NURTW and RTEAN liaise with governments (Federal and State)

on how to improve the well-fare conditions of their members. While they represent the

interest of their members, the danfo drivers are given autonomy on the affairs concerning

their buses. These unions need to be strengthened to enable them enforce the minimum level

of quality obtainable in the industry.

In New York, with its fragmented yellow-taxi service, the largest Cab union - the New York

Taxi Workers Alliance (NYTWA) numbering over 11,000 members and the Taxi and

Limousine Commission (TLC), has a set quality of standard for operation – vehicle type to be

used as taxi, fare rate, and passenger carrying capacity. With these passengers are assured of

the quality of service obtainable and thus patronize the yellow-taxi instead of other competing

mass transport service. NARTO, NURTW and RTEAN could take their cue from the New

York Taxi Workers Alliance (NYTWA) and the Taxi and Limousine Commission (TLC) of

New York City.

2.2.5 Quality management and Maintenance

To attain optimal profit, danfos need to have a life span long enough to generate sufficient

revenue at minimal cost. Oni (2004) has proved that a Second-hand vehicle has a useful life

span of five (5) years if taken regularly for tune-ups at a well-qualified mechanic and just

three (3) years if not. The average danfo driver doesn’t ever visit the mechanic for routine

maintenance, only visiting when his vehicle develops a visible fault. Because of this poor

maintenance culture, the danfo driver loses up to two (2) years of potential profits from his

danfo.

Auto maintenance is the process of inspecting or testing the condition of car subsystems (e.g.,

engine) and servicing or replacing parts and fluids. Regular maintenance is critical to ensure

the safety, reliability, drivability, comfort and longevity of a car. During preventive

maintenance, a number of parts are replaced to avoid major damage or for safety reasons,

e.g. timing belt replacement. Regular maintenance involves checking to see if the engine oil

is sufficient, the wheels are properly aligned, the air pressure in the tyres are right, the vehicle

isn’t making any unusual sound, the spark plugs are in proper working conditions, etc.

Regular maintenance is visiting a qualified mechanic and not the ordinary mechanic we see

on the road side. Though it costs money to visit a qualified mechanic, the extended lifespan

more than compensates for the cost.

2.2.6 Quality management and Customer Satisfaction

The central focus of quality management is consistent superior customer satisfaction. To

deliver this in the mass transport industry, the following dimensions must be given important

attention – the responsiveness of the transport service to passenger’s needs, the reliability of

the transport service in terms of availability, the accuracy of service delivery, the knowledge

of operators of the transport service, the courtesy displayed to the customers, the consistency

of service delivery and the speed at which this service is delivered.

Consistent superior customer satisfaction begins by identifying customer expectations for all

key "moments of truth" - the critical interactions customers have with the transport service.

The best way to understand customer expectations is to listen to customers using qualitative

research techniques. After identifying expectations, customer satisfaction can readily be

measured. Measuring passenger satisfaction requires the passenger to answer specific

questions about how he or she feels about the transport service's performance. This is why it

is so important to capture their interest and build the credibility needed to gain their

cooperation. The task is made considerably easier by speaking the customer's language and

presenting only issues that are truly significant.

Customers define quality by judging them in relation to competitors. The best performing

organizations allow customer expectations to drive their quality initiative. Once a mass

transport operator measures itself in relation to its competitors (benchmarking), it would be

able to quickly capitalize on their emerging strengths and address weaknesses before they

become problems. In fact, the whole success of a customer-orientated business is people

(Vincent, 2001)

2.3 Quality framework for mass transport

The European Commission in 1999 under the 4th

framework for Research, Technological

Development and Demonstration funded an extensive research that developed a quality

matrix – QUATTRO, which offers a comprehensive framework for analysing both functional

and technical quality determinants in mass transport. The table below is an adapted version.

Quality 1. Availability 1.1 Network

1.2 Timetable

2. Accessibility 2.1 External Interference

2.2 Internal interference

2.3 Ticketing

3. Affordability 3.1 Fare levels

3.2 Socially desirable services (concession fares).

4. Information 4.1 General Information

4.2 Travel Information in normal conditions

4.3 Travel Information in abnormal conditions

5. Time 5.1 Length of travel time

5.2 Punctuality and reliability

6. Customer care 6.1 Commitment

6.2 Customer Interference

6.3 Staff

6.4 Physical assistance

6.5 Ticketing options

7. Comfort 7.1 Ambient conditions

7.2 Facilities

7.3 Ergonomics

7.4 Ride comfort

8. Security 8.1 Safety from crime

8.2 Safety from accident

8.3 Perception of security

9. Environment 9.1 Pollution

9.2 Natural resources

9.3 Infrastructure

2.3.1 Availability

Public transport users want to be certain that the transport service would be at hand whenever

they need the service. They don’t want to get to the bus-stop and have to queue long hours

before they use the service. The average danfo user can wait at the bus-stop for an average of

ten (10) minutes before his/her patience runs thin. Making the mass transport service

available round the clock should be what the transport service providers should aspire to. As

once the customer is certain that the service would always be available, he increases his

patronage as he sees the service as reliable. The average danfo driver operates from 5:30am to

10:00pm on a single shift, while the BRT service operates two shifts of 6:00am to 2:00pm

and 2:00pm to 10:00pm. Between 10:00pm and 5:30am, transport service demand becomes

negligible. The traffic jams during peak periods and rainy season disrupts the availability of

mass transport and as such passengers resort to alternative means of transport – Okada, train

and by foot. For the young and elderly, mass transport is often the only motorised transport

option available to them.

2.3.2 Accessibility

This refers to the ease or convenience of getting a transport service. This also refers to the

convenience with which people with special requirements (physically disabled) can get on the

transport service. Virtually all danfos in Lagos state aren’t designed to accommodate people

with special requirement and as such these people are discouraged from using the danfo

service. In Lagos, there are over 200,000 disabled people and thus this potential market

becomes untapped. It also involves the ease with which the mass transport can access

passengers transport routes. Can the danfos access the periphery of Lagos and how terrain

serves as a constraint of choosing a public transport services? To achieve this, the

government has to construct motorable roads to improve accessibility.

2.3.3 Affordability

The cost of using the mass transportation service must be so minimal in the transport users’

eyes, but sufficient enough for the transport operator to cover the costs of delivering the

transport service plus a profit margin adequate to encourage further investment. Also the

transport fares should be charged in readily available denominations (N20, N50, or N100) to

allow for ease of payment. E – payment channels could also be implemented, especially for

frequent riders. This would be done through customer loyalty programs that encourage

customers to stick to a particular brand, rather than hover across different service providers.

2.3.4 Information

Information they say is power. Passengers need to have complete information of the vehicle

before they embark on a journey. On getting to the bus-stop they want to know what time is

the next bus coming, how many seats are available, how much is the transport fare going to

cost, route to be plied, what is the status of the driver – drunk or not, etc. Simply put, they

want to be provided with real time information of the status of their journey. During unusual

situations like emergencies, they want to be aware of the emergency procedures, the nearest

emergency exit, the insurance cover taken, and much more. Danfo drivers hardly ever care

about the importance of making information available to the passengers. In fact, the only

information they will provide for you is that which displays their destination. Worst of all

during emergencies, passengers are left at their own mercy as most of the danfos don’t have a

pre-planned emergency response procedure. Because of the dearth of information and poor

service delivered, frequent passengers of the danfo service are school children, youths,

women, and the poor primarily because they are helpless and can’t afford a private car. The

middle class who own a car rarely ever patronize the danfo services.

2.3.5 Time

As one considers embarking on a journey, one of what comes to mind is the issue of time –

what is the length of the journey, will the vehicle arrive on time, how much of the travel time

would be taken by traffic jam, etc. Passengers need to be certain that if they board a danfo

from Yaba that they would be in CMS in exactly 15minutes; nothing more, nothing less.

Because of the numerous stops for touts, police officers, traffic jams, etc the length of the

journey by a danfo is hardly ever certain. Some danfo drivers have been able to minimise the

effect of traffic jams by plying the opposite lane or manoeuvring through residential streets.

This at most times puts them in the nets of LAMATA and against the law. The BRT is the

only service that its time of travel is predictable. The longest time interval before a BRT bus

arrives at a bus-stop is 10minutes. The segregated lane for BRTs has made BRT rarely

affected by traffic jams and thus a Yaba-CMS journey by BRT is just 15minutes.

2.3.6 Customer care

The focal point of every customer oriented business is the customer. Customers need to be

treated with care from the moment they decide on the bus they want to board till they finally

alight the bus. Some schools of thought believe that customer care extends even after he

alights – this is a welcome development. The danfo driver and his conductor need to show the

passengers how committed they are to ensure that the passengers get to their destination on

time and safely. Anytime they come in contact with a (potential) passenger, they need to

inspire safety and reliability, while giving the passengers the reassurances that they are in the

safest hands possible. They should also provide special assistance to the elderly, school

children and pregnant and nursing mothers. The underlying premise in a customer oriented

business is that customer satisfaction should be the only objective of a business and profits

can only be generated from a satisfied customer. Because of the danfo driver’s educational

background, they believe that their major objective is to maximise transport fares, even at the

expense of customer satisfaction, as passengers will always come.

2.3.7 Comfort

This refers to how relaxing one feels in a public transport service. It includes the passengers

comfort in terms of leg room, upholstery of the chairs, luggage space, fresh air flow,

ambience and much more. Passengers want to enter a public transport and feel like they are in

the back seat of their car and not fishes parked in a Sardine can. The Volkswagen Type 2 (T3)

– typically used for danfo in Lagos, was designed to carry goods and not passengers. And as

such doesn’t have any sitting arrangement besides the driver’s row. It is when the vehicle

lands in Apapa that it gets fitted with wooden chairs, usually covered in two (2) cm of foam,

making comfort in a danfo bus poor. The only comfortable place is the driver’s row where

you have two (2) or three (3) passengers as against the average four (4) passengers on the

other rows.

2.3.8 Security

Anytime a passenger boards a mass transport, three main security issues comes to mind –

safety from crime, safety from accident and one’s perception of security. Safety from crime

refers to how secure is one and one’s belongings from pick pocketing, theft, being mugged

and armed robbery on entering the danfo. Safety form accident refers to the how certain that

he would arrive at his destination unharmed and in the event of an accident, the speed at

which medical personnel would attend to him. The perception of security refers to his

subjective feeling of his security in the public transport. Empirical research has discovered

that besides accessibility, security is a major concern on passengers mind in deciding to use a

public transport. Regardless of their drinking habits, danfo drivers are the safest means of

travel from ghastly motor accidents, but their records with regards to safety from crime is

abysmal.

2.3.9 Environment

This measures the impact of the danfo and their activities on our environment. How much

they contribute to global warming, noise pollution, breaking of law and order how they

damage our roads. Public transport cuts down our per capita carbon footprint, but this savings

could be reversed especially when the danfo used is rickety. The danfos incessant honking

causes a lot of noise pollution. The danfo drivers in Lagos are known to be the most reckless

in the world with regards to their constant and utter disregard for traffic rules and regulation.

2.4 Profits

Measuring customer retention, relates directly to the bottom line. Long term customers spend

more, refer new clients and are less costly to do business with. Ironically, past customers

present every company with an opportunity. They can tell the organization exactly what parts

of the business to fix in order to reduce the number of customers at risk. This improves

customer retention and, subsequently, profitability. An average organization loses about 15%

of its customers every year. But if this can be reduced to 10%, bottom line profits improve

35% to 85% (Heskett, 1994). Finding out why customers leave can often be difficult since the

majority of unhappy customers don't complain, they simply quit. Exit interviews solve this

problem.

Concern for performance and interest in customers are not new to the public transportation

industry. As the operators of private businesses and later public services, public transportation

managers have sought to maximize ridership and revenues by providing clean, safe, and

reliable service, while carefully managing costs.

Figure 1 The willingness to pay circle. Source QUATTRO

The figure above is “The willingness to pay circle” developed by Quattro. This figure explains

how with improved quality management performance, the firm can deliver better service at a

premium. Because of the better quality of service delivered, new customers would be gotten and

some old customers would be lost. The underlying premise is to make the net gain of customers

positive. Because of the transports company’s improved financial capacity, he would be able to

deliver more improved services. This cycle continues on and on as service in the transport

industry improves.

Better service quality

Higher effectiveness of

service

Higher willingness to

pay

Higher fares

Higher revenues

Increased financial capacity to improve

service quality.

Performance of

Quality management

New Customers Lost customers

Summary

A review of the history of the mass transport industry shows that it is predominantly dominated

by the danfos. They have their history dating back to the seventies and are characterised by their

disorderliness, poor organisation, illiteracy, low maintenance culture, poor quality of service

delivery. While the Bus Rapid Transit (BRT) was designed to solve the excesses of these danfos,

the danfos still have a strangle hold of the Lagos mass transport industry.

We use the Quattro model to explain how we can implement quality management in the

transport industry. We start by explaining the nine (9) quality matrix as they form the building

blocks to implement the quality management in the transport industry. Quattro also provides us

with the willingness to pay circle. The willingness to pay circle describes how with improved

quality of service delivered, the transport firm can maximise its profits.

CHAPTER 3

THEORECTICAL FRAMEWORK AND RESEARCH METHODOLOGY

This chapter introduces the general method by which the data used in this research was gathered and

also analyses the way the research instruments were developed. Each section provides an insight into

the methodology adopted in the collection, analysis and interpretation of the data collated for the

study. It attempts to provide a detailed analysis of the research plan and tools utilized in the

actualization of this study.

3.1 Theoretical framework

Quality management is a management approach to increase the efficiency and effectiveness of an

organization. Quality management is not an easily visible management approach. But an increase in

long term profitability is just one of the signs of the positive impacts of quality management. This

change could be positive or negative depending on the Human and financial resources and

implementation procedures. Therefore, it is important to understand the channel through which

quality management approach influences the organizations long-term profit as well as the time it

takes for this approach to have industry wide impact. The basic theoretical framework for analyzing

the success or failure of the quality management approach is the Year-on-Year change in the Net

profit levels over a period of three (3) years. The mechanism is such that changes in the management

approach affect the organizational productivity and efficiency which increases the revenue accruable

to the industry.

The Total Quality Management literature, pioneered by Shewart, Deming and Juran in the 1950s,

based Total Quality Management on the quest for progress and continual improvement in the areas of

cost, reliability, quality, innovation, efficiency and business effectiveness. According to Bubsait

(2007), "Total Quality Management has been an approach for continuously improving the quality of

goods and services delivered through the participation of all levels and functions of the

organization". Organizations have viewed Quality management as the totally integrated efforts of

organizational members for gaining and sustaining competitive advantage by continuously

improving every facet of organizational culture. The increased reliability, quality and efficiency

leads to a simultaneous drop in cost. A reduction in cost - it being an outflow to the organization,

would lead to an increase in Net profit.

Another channel through which the application of quality management tends to affect Net profit is

the increased revenue. To an economist, the improved efficiency in the transport industry attracts

more ridership - more people would begin to use the public transport as a means to travel compared

to other available modes of transport. Also the improved efficiency is very crucial as it attracts

creditors into this industry. The creditors begin to offer more and cheaper financing to the transport

industry. Not only would they reduce the cost of borrowing in this industry, but the improved ease of

access to low cost financing encourages the transport industry to consolidate and enjoy economies of

scale.

However, since quality management was born and developed in the manufacturing industry,

obstacles can arise if the Quality Management philosophy is not adjusted enough to put the nature of

the transport industry - a service industry. According to Stanton, services are those separately

identified and essentially intangible activities that provide want satisfaction and that are not

necessarily tied to the sale of a product or another service. Dr Abdulaziz (2007) further emphasized

by saying, "implementing quality management in the transport industry can be difficult due to the

fact that quality of services cannot be defined objectively because of the higher level of external

uncertainty. Another difficulty is the fact that services are intangible which makes it difficult to set

standards to confirm to them and to measure them. High quality services are subject to the individual

customer expectations which may be unknown or unstated, and may vary from customer to customer

and also time to time.

But the European Commission in 1999, under the 4th Framework program for Research,

Technological Development and Demonstration funded an extensive research called QUATTRO that

outlines the effects of Quality management, how to measure this quality, how quality management

affects cost in the public transport industry and the public transport quality matrix. The project,

called QUATTRO, emphasized the conventional wisdom that Quality management has a positive

correlation with profitability in the transport industry. These studies also represent an advance in our

understanding of the effects of the quality management on profitability.

3.2 Research design strategy

This research is designed to critically investigate the impact of quality management on the

profitability of the Nigerian public road transport industry. Research design provides the glue that

holds the research project together. A design is used to structure the research, to show how all of the

major parts of the research project — the samples or groups, measures, treatments or programs, and

methods of assignment — work together to try to address the central research questions.

There are various research designs but the one adopted for the purpose of this study is a cross-

sectional survey. In a cross-sectional survey, data is collected at a point in time from a sample

selected to describe some larger population.

3.3 Sources of data

To ensure the reliability of the information resulting from the research, this research work will be

based on secondary and primary data collection methods the researcher deployed the use of the two

data types. The data used in this study was thus derived from both primary and secondary sources.

3.3.1 Primary data

Primary sources are the materials on a topic upon which subsequent interpretations or studies are

based, anything from first hand documents such as poems, diaries, court records, and interviews to

research results generated by experiments, surveys, and so on. Primary sources are records of events

as they are first described, without any interpretation or commentary. Primary data has the advantage

of giving the researcher the opportunity to conduct an unbiased and extensive study on the research

problem set-out to solve.

For the purpose of this research, the researcher used the underlisted primary research data

i. Questionnaires: A structured questionnaire was used, which contained a series of

questions. A structured questionnaire has the advantage of presenting questions in

sequence. It standardises the research instruments and equally removes the chances of the

respondent tele-guiding the researcher. The researcher used scaled questions.

ii. Observation: Observation means that the situation of interest is checked and a person or

some mechanical device records the relevant facts, actions, or behaviours. Accurate data

about what consumers do in certain situations is provided by observation. Observation

does not tell why it happened.

We intend to carry out a study to determine the impact of quality management on the profitability of

the Nigerian public road transport industry. To facilitate this process, a population size of four

hundred and fifty people was chosen. The distribution of the respondents was on the danfo drivers,

their conductors, passengers and regulatory agencies like LASTMA, the Police, NURTW, etc. The

questionnaires will be administered in the Ikeja, Ikorodu, Obalende, Oshodi and Yaba motor parks of

Lagos based on the fact these areas are the major transport hubs of Lagos.

3.3.2 Secondary Data

Secondary sources, on the other hand, offer an analysis or are statement of primary sources. They

often attempt to describe or explain primary sources. Some secondary sources not only analyse

primary sources, but use them to argue a contention or to persuade the reader to hold a certain

opinion.

A lot of materials used, especially for the theoretical framework of this study was obtained from

articles, internet, journals, magazines, newspapers and textbooks. All these served as the secondary

source of data.

3.4 Research instruments

The instruments of research are determined in line with the nature and objective of the research. This

study was designed to be facilitated using a survey format hence the use of a carefully designed and

standardised questionnaire that allows respondents to answer certain collated questions. Questioning

involves using a questionnaire (data collection instrument) to ask respondents questions to secure the

desired information. The result of the questionnaire was combined with data collated from secondary

sources as well as observations, to draw concluding inferences.

3.5 Research population

According to Asika (1991), the population of a research study is defined as the census of all items or

objects that possess the characteristic or that have the knowledge of the phenomenon being studied.

The population of the study consists of the entire transport operations in Lagos.

To reduce the laborious process of distributing questionnaires and conducting personal interviews

with the entire population in the various institutions, a random selection of players in the Lagos

public transport industry was carried out. Our sample size is drawn from this population and consists

of two hundred and fifty (250) respondents.

3.5.1 Determination of sample size

A sample size is defined as the subject or part of the entire population of the study from which we

select a few objects (people) in the population for observation and then apply what was observed to

the entire population of the study. The population of this study is a finite one.

A sample size of 250 respondents was used and adequate care was taken to accommodate all

categories of respondents in the analysis of data. To optimize the outcome of the research the

researcher restricted the distribution of the questionnaires to aforementioned categories of people.

The drivers and conductors are the ones who have more dealings with customers and are experts in

the field, hence making them more experienced in developing tailored superior services to their

customers.

Other regulatory agencies like LASTMA, KAI, The Police, NURTW, etc. are also included in this

sample because they develop and implement the policy framework that would affect the profitability

of the public transport industry. Also, the customers (passengers) are also included in this research as

they are the users of the public transport services.

3.6 Restatement of research questions

The research questions will focus on the impact of quality management on the profitability of the

Nigerian road transport industry and how the profitability of the industry can be improved.

i. How is the present profitability level of each individual danfo measured?

ii. How can the driver and conductors be motivated to deliver superior services to their

passengers (customers)?

iii. How can Unions and other regulatory agencies be harmonised for optimal

performance and for increased profitability of the danfo drivers?

iv. How can customer satisfaction be improved and superior services delivered?

3.6.1 Restatement of hypothesis

: There is no correlation between how regular maintenance is done on the vehicle and the

profit of the drivers.

There is correlation between how regular maintenance is done on the vehicle and the

profit of the drivers.

HB0: There is no correlation between the amount spent on maintenance and the profit of the

drivers.

HB1: There is correlation between the amount spent on maintenance and the profit of the

drivers.

3.7 Conduction of the field work

The field work involved the administration and collection of the questionnaires. Efforts were made to

avoid much use of technical terms as the questions were simple and straight forward. The

administration of questionnaire was done in locations at Ikeja, Ikorodu, Obalende, Oshodi and Yaba

in Lagos. A total of two hundred and fifty (250) copies of questionnaires were distributed.

In order to obtain data from the sample respondents, Likert scale questionnaire was designed and

administered among the chosen sample size. The success in the number of respondents to the

administered questionnaire was ensured through the deployment of the assistance of fellow

colleagues and friends who are resident in these cities. Interviews were conducted on the research

topic.

3.8 Method of data analysis

This involves the use of some statistical tools such as percentages, mean score and Correlation co-

efficient in order to make comparison, test the hypotheses and draw conclusions. Correlation

coefficient helps test the relationship between variables.

3.9 Limitation of methodology

The followings, so far projected might be encountered in the conduct of the research work and these

include: the rate of response rate of the respondents, the availability of data in relation to their

profitability and the respondent’s literacy level.

Summary

The aim of this chapter would be to validate empirically our research hypothesis and gather as much

insight into the impact of quality management on the profitability of the Nigerian road transport

industry using the Lagos state danfo drivers as a case study.

CHAPTER FOUR

DATA PRESENTATION AND ANALYSIS

4.0 Introduction

The findings of the research are presented as they relate to the research hypothesis. A tabular format

is used to present the data, results and findings of the study with appropriate explanations.

Prior to the actual administration of the questionnaire, the investigator carried out some exercise

among few operators of the danfo service in order to determine whether the questions were ordered

or structured in such a manner as to elicit the desired information.

4.1 Presentation of Data

TABLE 4.1.1: RESPONSE RATE BY LOCATION

REGION No. of Questionnaire given Properly filled

Ikeja 45 38

Ikorodu 45 35

Obalende 45 39

Oshodi 45 36

Yaba 45 37

Total 225 185

From the table above, a total of 185 questionnaires were returned out of 225 questionnaires given.

The questionnaires were fairly distributed around the major transport hubs of Ikeja, Ikorodu,

Obalende, Oshodi and Yaba with 38, 35, 39, 36 and 37 respectively.

TABLE 4.1.2: RESPONSE RATE BY AGE CATEGORY

Age category Number Response

17 – 23 18 9.7

24 – 30 51 27.6

31 – 40 41 22.2

41 – 50 50 27.0

51 and above 25 13.5

Total 185 100.0

As could be read from the table, out of 185 respondents 18 were between the ages of 17 to 23years,

51 were between 24 and 30years, 41 were between 31 and 40years, 50 were between 41 and 50years

and 25 were above 51 years representing 9.7%, 27.6%, 22.2%, 27.0% and 13.5% respectively.

The labour force participation rate is highest among the broad age category of 24 to 50 which

constitute 76% of the total sample. Age category 17 to 23 years constitutes 9.7% while 51 and above

constitutes 13.5%. The study of age distribution enables the researcher to know the percentage that is

within the various age group of the workforce.

TABLE 4.1.3: DISTRIBUTION BY SEX OF RESPONDENT

Variable Number Percentage

Male 185 100.0

Total 185 100.0

A total of the 185 respondents were all male. This represents the realities on ground. The danfo

business is a predominantly male dominated business.

TABLE 4.1.4: YEARS OF EXPERIENCE

Years of Experience Number Percentage

Less than 1year 38 20.5

1 – 5years 28 15.1

6 – 10 years 39 21.1

11 -15 years 39 21.1

Above 15 years 41 22.2

Total 185 100.0

Table 4.14 shows the years of experience possessed by the drivers. This is so important to this study

for the fact that, the more experience you acquired the more likely you would deliver quality service.

TABLE 4.1.5: HIGHEST EDUCATIONAL QUALIFICATION ATTAINED

Degree Qualification Number Percentage

Primary 80 43.2

JSCE 57 30.8

SSCE 42 22.7

HND/DIPLOMA 6 3.2

Total 185 100.0

An examination of this table would reveal that 43.2% have attained a maximum of primary school

qualification, 30.8% have a maximum of JSCE and 22.7 have a maximum of SSCE qualification.

And 3.2% have a maximum of HND/Diploma qualification. None of the danfo operators has attained

B.Sc. our Masters qualification. This is important to this study because, one’s educational

qualification influences one’s exposure which determines the quality of service one could offer. And

as such, the more educational qualification one has attained the better quality of management one

would offer.

TABLE 4.1.6: DO YOU OWN A DANFO

Response Number Percentage

Yes 130 70.3

No 55 29.7

Total 185 100

From the table above, 130 representing 70.3% of the operator own their danfo’s and 55% either

rented theirs or leased the danfo buses they use. Of those who own their own danfo’s, 89 of them

own just one Danfo, 18 own just two buses, 10 own three buses while the remaining 13 own above 4

buses. This shows how fragmented the industry as 48% of the Danfo drivers own just one danfo bus.

They are thus not able to maximise the economies of scale.

TABLE 4.1.7: SOURCE OF FINANCING

Frequency Percentage

PERSONAL SAVINGS 100 54.1

LOAN FROM RELATIVES 31 16.8

LEASED THE DANFO 54 29.2

Total 185 100.0

From the table above, 54.1% of the danfo drivers use their personal savings to operate their danfo,

16.8% get their financing from relatives and loved ones. The other 29.2% get their financing from

some other form of informal financing – retirees, loan sharks, etc. Despite the fact that 76.8% of the

Danfo drivers are open to loan from commercial banks (Table: 4.16 ), Commercial banks provide

0% financing to the danfo service possibly because of the perceived risk.

TABLE 4.1.8: HOW MANY DAYS OF THE WEEK DO YOU WORK

Frequency Percentage

5 DAYS 44 23.8

6 DAYS 112 60.5

7 DAYS 21 11.4

Invalid 8 4.3

Total 185 100.0

From the table above, 60.5% of the danfo drivers operate for 6-days out of a possible. This is very

important as it is a fact that the more work hours, the higher the chances of fatique setting in and the

lower the quality of service that could be delivered.

TABLE 4.1.9: HOW LONG DO YOU WORK EVERY DAY

Duration Frequency Percentage

BELOW 8 HOURS 13 7.0

8 -10 HOURS 42 22.7

10 - 12 HOURS 83 44.9

ABOVE 12 HOURS 47 25.4

Total 185 100.0

From the Table above, 60.5% of the danfo drivers work for six times a week resting mostly on

Sundays. 23.8% of them work for five days in a week and 11.4% work 7 Days in a week. The

median hours of operation are 10 – 12 hours as 44.9% of the drivers affirmed to this. This is

important because we now that the longer a person works, the more fatigue sets and his frustration

begins to rise. He thus becomes unable to deliver appropriate quality service to his customers.

TABLE 4.1.11: WHAT IS YOUR BUSIEST TIME OF THE DAY?

The busiest time of the day is between the hours of 6a.m. and 9a.m. and between the hours of 6p.m.

and 9p.m. in the evening. These hours represent rush hours when workers and students are going

and returning from their areas of work and schooling respectively. During this peak period, pressure

is on the danfo drivers to deliver quality service.

Frequency Percentage

6AM - 9AM 98 53.0

9AM - 12NOON 12 6.5

12NOON - 3PM 10 5.4

3PM - 6PM 9 4.9

6PM - 9PM 56 30.3

Total 185 100.0

TABLE 4.1.12: WHAT DO PASSENGERS USUALLY DEMAND FOR

Frequency Percentage

CHEAPER TRANSPORT FARES 39 21.1

COMFORT 12 6.5

TIMELINESS 100 54.1

SAFETY AND SECURITY 34 18.4

Total 185 100.0

According to the drivers, 54.1% of their passengers demand that the driver arrives to their point of

destination on time; 21.1% of their passengers demand for cheaper transport fares; 18.4% are more

concerned about their safety; and just 6.5% demand for an improvement in the comfortability of the

danfos. Knowing what passengers demand for is very important as it would enable the researcher

develop an effective quality management framework that would be relevant to the industry.

TABLE 4.1.13: DO YOU HAVE A SPECIFIC CONDUCTOR

Frequency Percentage

YES 111 60.0

NO 74 40.0

Total 185 100.0

From the table above, 40% of the drivers attested to the fact that they do not have a permanent

conductor. A high labour turnover of this magnitude limits their ability to consistently deliver quality

service to their passengers. Frequent changing of passengers would require continuous enlightenment

and this would hinder the danfo service from delivering superior quality service.

TABLE 4.1.14: HOW LONG HAVE YOU BEEN WITH THIS CONDUCTOR

Frequency Percentage

LESS THAN 2 WEEKS 33 17.8

2 WEEKS - 2 MONTHS 32 17.3

2 MONTHS - 6 MONTHS 46 24.9

6 MONTHS - 1 YEAR 33 17.8

OVER 1 YEAR 41 22.2

Total 185 100.0

From the table above, 60% of the drivers attested to the fact that they have spent less than 6 months

with their conductors. This high labour turnover doesn’t encourage the delivery of quality service to

the customer.

TABLE 4.1.15: HOW MUCH FUEL DO YOU BUY EVERYDAY

Cost Frequency Percentage

N751 - N1,500 12 6.5

N1,501 - N2,300 30 16.2

N2,301 - N3,000 115 62.2

ABOVE N3,000 16 8.6

Total 185 100.0

From the table above, the median expenses spent on fuel lies between N2,301 – N3,000. As fuel is a

major operational cost, a spike in the cost of fuel would lead to higher transport fares or the reduction

in the already low maintenance culture of the drivers.

TABLE 4.1.16: HOW MUCH DO YOU MAKE EVERYDAY AFTER EXPENSES

Frequency Percentage

LESS THAN N2,000 10 5.4

N2,001 - N4,000 63 34.1

N4,001 - N6,000 94 50.8

N6,001 - N8,000 18 9.7

Total 185 100.0

This table is very important as it shows the average daily profit of the danfo drivers. It can be seen

that 34.1% of them make between N2,000 and N4,000 profit. While 50.8% of them make between

N4,001 and N6,000. This table is also important as it will also help us test our hypothesis.

TABLE 4.1.17: WOULD YOU ACCEPT A LOAN TO EXPAND YOUR DANFO BUSINESS

Frequency Percentage

YES 142 76.8

NO 36 19.5

INVALID 7 3.8

Total 185 100.0

From the table above, 76.8% of the danfo drivers are open to accept a loan from financial institutions

to invest into and expand their business. Lack of funds could also be a factor that hinders their

capacity to deliver quality management.

TABLE 4.1.18: HOW OFTEN DO YOU DO MAINTENANCE

Duration Frequency Percentage

WEEKLY 15 8.1

MONTHLY 66 35.7

WHEN THE PERFORMANCE OF THE VEHICLE DROPS 89 48.1

RARELY 15 8.1

Total 185 100.0

The maintenance culture among danfo drivers is poor. This is because 48.1% of the danfo drivers

only report going for maintenance only when their bus performance drops. Effective quality

management requires that maintenance be done on a regular basis and not once in a while.

TABLE 4.1.19: ON AVERAGE HOW MUCH DO YOU SPEND ON THE MAINTENANCE

OF THE BUS

Frequency Percentage

LESS THAN N2,000 8 4.3

N2,000 - N5,000 58 31.4

N5,001 - N10,000 98 53.0

ABOVE N10,000 21 11.4

Total 185 100.0

From the table above, 53.0% of the drivers spend between N5,000-N10,000 on maintenance. While

31.4% spend between N2,000 and N5,000 on maintenance.

TABLE 4.1.20: WHICH UNION DO YOU BELONG TO?

Frequency Percentage

NURTW 89 48.1

RTEAN 55 29.7

NONE 41 22.2

Total 185 100.0

NURTW happens to be the union with the largest membership strength with 48.1% of the drivers,

while RTEAN is second with 29.7%. 22.2% belonged to no union at all. With 77.8% of the drivers

unionised, the concept of quality management would be more accepted with the involvement of the

unions.

TABLE 4.1.21: WHO GIVES YOU THE MOST WORRY

Frequency Percentage

AGBERO'S 66 35.7

LASTMA/VIO 75 40.5

NURTW/NARTO/RTEAN 17 9.2

POLICE 27 14.6

Total 185 100.0

LASTMA/VIO, Agberos, police and the union, in this order, happened to give the danfos more

worry as they exhibit 40.5%, 35.7%, 14.6% and 9.2% of the survey report.

TABLE 4.1.22: HOW OFTEN HAVE YOU BEEN HARRASSED BY THE

POLICE/LASTMA/VIO

Frequency Percentage

DAILY 87 47.0

WEEKLY 47 25.4

MONTHLY 26 14.1

RARELY 25 13.5

Total 185 100.0

From the table above, the danfo drivers are on a regular basis harassed by the Police, Lastma or VIO.

This frequent harassment causes a strain on the danfo drivers ability to deliver quality service.

TABLE 4.1.23: HOW MUCH DO YOU HAVE TO PAY TO THE POLICE TO LET YOU GO

Frequency Percentage

LESS THAN N50 62 33.5

N51 - N100 77 41.6

N101 - N200 20 10.8

ABOVE N200 26 14.1

Total 185 100.0

To get themselves free from Police harassment, 41.6% attested to the fact that they pay between N51

and N100; 33.6% pay between N0 and N50, 10.8% pay between N101 and N200 while 14.1% claim

to pay above N200.

TABLE 4.1.24: HOW MUCH DO YOU HAVE TO PAY TO LASTMA/VIO TO LET YOU

GO

Frequency Percentage

LESS THAN N2,000 8 4.3

N2,001 - N5,000 24 13.0

N5,001 - N10,000 114 61.6

N10,001 - N20,000 36 19.5

ABOVE N20,000 3 1.6

Total 185 100.0

From the table above, 61.6% of the danfo drivers pay between N5,000 and N10,000 to get

themselves free from the clutches of lastma or VIO, 19.5% pay N10,000 and N20,000, 13.0% pay

between N2,000 and N5,000; 4.3% pay less than N2,000 and just 1.6% pay above N20,000.

4.20: Test for hypothesis

This section presents the test of the hypothesis formulated for the study using Spearman’s correlation

statistical tool which is shown in Table 4.30

Table 4.20: Correlations

PROFIT MAINTENANCE EXPENSE ON

MAINTENANCE

WORK TIME

PROFIT 1.000 .745** .730** .165

MAINTENANCE .745** 1.000 .574** .120

EXPENSE ON

MAINTENANCE

.730** .574** 1.000 .107

WORK TIME .165 .120 .107 1.000

**. Correlation is significant at the 0.05 level (2-tailed).

Hypothesis 1:

: There is no correlation between how regular maintenance is done on the vehicle and the

profit of the drivers.

There is correlation between how regular maintenance is done on the vehicle and the

profit of the drivers.

From the Table 4.4 when profit (daily take home by the danfo drivers) was correlated against

maintenance visits, the coefficient was 0.745. This shows that there is a high relationship between

the daily take home (profit) of the drivers and how regular maintenance was done on the danfo

because correlation coefficient is closer to one (1). Thus, is rejected at the 0.05 level of

significance because the SPSS flagged the result with two stars (**) indicating that correlation is

significant at the 0.05 level (2-tailed).

Hypothesis II

HB0: There is no correlation between the amount spent on maintenance and the profit of the

drivers.

HB1 There is correlation between the amount spent on maintenance and the profit of the

drivers.

From Table 4.4, when the expenses were tested with the profit of the danfo drivers, the coefficient of

correlation was 0.730(**). This shows that there is high relationship between the amount spent on

maintenance and profit levels because the coefficient of correlation is closer to one (1). Thus, 𝐻𝐵0 is

rejected at 0.05 level of significance because the SPSS output flagged the result with two stars (**)

indicating that correlation is significant at the 0.05level (2-tailed).

In order to test this hypothesis, question seven in the questionnaire solicited to know what the

respondents felt about good incentive and achievement in relation to their needs, want and desire.

CHAPTER FIVE

SUMMARY, CONCLUSION AND RECOMMENDATION

5.0 Summary of Findings

There is no doubt that this study has proved the impact of quality management on mass

transportation in Nigeria. This has been achieved by actually interacting with the danfo drivers who

are the subject matter of this research. Among some of the findings made from the study are:

5.0.1 Operational Problems

Firstly, the operational problems which were related to bad roads and lack of garages does not

encourage profitability and effective transportation business because these operational problems add

to maintenance cost of the vehicles and shorten the life span of the vehicles thereby making business

susceptible to failure. And problem of getting genuine spare parts make it difficult to operate

effectively.

5.0.2 Fragmentation of the Industry

Since the organised mass transport industry is highly fragmented. It does not benefit from economies

of scale and efficiency as a result of specialisation. With every owner of a danfo business also being

his driver, his mechanic, his administrative staff, etc., he thus doesn’t maximise profit accruable.

5.0.3 Literacy Level

The low literacy level of the danfo drivers is also a hindering factor. Many of them are not able to

speak “standard English”, choosing instead to communicate in their local dialect or pidgin. This thus

hampers how effective they would be in communicating with their customers.

5.0.4 Union Activities

The persistant taxation and toll taking by the unions, agberos and touts has been a strain on the

profitability of the danfo drivers. Having to always contend with paying these levies or see one part

of their vehicles damaged forces them to pay. They are even more angered since these unions,

agberos or touts aren’t helping them to solve their operational problems, but more interested in lining

their own pockets.

5.0.5 Activities of Police/VIO/LASTMA

These government agencies have virtually started living off the mass transport industry. They make

laws that would always make the danfo drivers at their mercy so that they could charge him a fine.

Some even believe that collecting bribe is their birth right and have been known to shoot at any

slightest provocation. The activities of the Police, LASTMA and VIO have thus hindered the

profitability of the mass transport industry.

5.1 Conclusion

Having gone this far on mass transportation in Nigeria, it is considered an understatement to observe

that mass transportation has become an integral part of the Nigerian economic system. Thus, the

effective management of the mass transportation industry is essential for Economic build up, or

excellence.

The increasing awareness of the business prospect having dawn on prospective transportation

operators and the need for positive orientation along this line is in no doubt putting transportation in

the fore-front of the economic reconstruction. The role of effective transportation therefore cannot be

over-emphasised or over-looked in an economy.

5.2 Recommendations

Giving the rightful backing, by government and investors, over hauling the whole transportation

system of the country will go a long way in helping the business to grow.

This should include the construction of all season road network across the country’s landscape as

every dollar spent on transportation contributes to the overall GDP.

The public transport operators should be made to consolidate and organise themselves into

corporations.

The activities of the Unions, Agberos and touts should be curtailed and overtime restrained as

they have no positive contribution to the industry.

The Police, VIO and LASTMA should stick to their traditional functions of maintaining law

and order and not revenue generation.

Parties involved (Government, Drivers and Unions) should promote the best possible service

to public transport customers in urban areas by applying adapted quality management

practices and procedures, so as to optimise the use of physical and financial resources in a

market driven environment

Transform the public transport experience from “an obstacle course” to a “seamless journey”,

which means proposing a door to door service to the users;

Use quality and quality management to attract customers by offering services which compete

with the private car;

Develop a customer-orientated approach. Think “Customer”, “Customer”, and “Customer”

Drivers should consider their activity as more than a business: the impact of passenger

transport activities on the local community and on the quality of life must be taken into

consideration in urban public transport strategies, objectives and priorities

That the people who ultimately influence service quality in public transport are the bus driver,

the traffic warden, the person in charge of complaints or vehicle maintenance. Their working

conditions will influence directly their willingness and capacity to provide good service.

Listening to the staff, communicating with them on their working conditions, on the firm’s

traffic management strategy, on the results of their work and on the practical consequences

for them of the management’s decisions is therefore essential.

QUESTIONNAIRE FORM

INSTRUCTION: Please tick the most appropriate option as provided below.

PART A

BIO - DATA

1) Sex:

Male ( ) Female ( )

2) Marital Status:

Single ( ) Married ( )

3) Age:

17 – 23 ( ) 24 – 30 ( ) 31 – 40 ( ) 41 – 50 ( ) 51 and above ( )

4) Education qualification;

Primary ( ) JSCE ( ) SSCE ( ) Diploma ( ) HND/B.Sc. ( )

M.Sc. ( )

5) Do you own a Danfo bus:

Yes ( ) No ( )

6) Do you have a Driver’s license?

Yes ( ) No ( )

7) How did you get the money to purchase this danfo:

Personal savings ( ) Loan from relatives ( )

Loan from Microfinance banks ( ) Loan from banks ( ) Rented the danfo ( )

8) Indicate your years of experience in the Danfo industry:

Less than 1year ( ) 1 – 5 years ( ) 6 – 10 years ( )

11 – 15years ( ) Above 15 years ( )

9) How many Danfo’s do you own:

0 ( ) 1 ( ) 2 ( ) 3( ) 4 and above ( )

PART B – Work specific

10) How many days of the week do you work:

5days ( ) 6 days ( ) 7 days ( )

11) How long do you work every day:

Below 8hrs ( ) 8 – 10 hrs ( ) 10 – 12 hrs ( )

Above 12hrs ( )

12) After work, how do you relax:

Beer parlor ( ) Watch a match ( ) At Home ( )

Visit a girlfriend ( )

13) How much money do you charge per journey:

less than N50 ( ) N51 – N100 ( ) N101 – N150 ( )

N151 – N200 ( ) Above N200 ( )

14) What time of the day is the MOST profitable:

6am - 9am ( ) 9am – 12noon ( ) 12noon – 3pm ( )

3pm – 6pm ( ) 6pm – 9pm ( )

15) What time of the day is the LEAST profitable:

6am - 9am ( ) 9am – 12noon ( ) 12noon – 3pm ( )

3pm – 6pm ( ) 6pm – 9pm ( )

16) What do passengers usually demand for:

Cheaper transport fares ( ) comfort ( ) Timeliness ( )

Safety and security ( )

17) Do you have a specific conductor:

Yes ( ) No ( )

18) How long have you been with this conductor:

less than 2 weeks ( ) 2weeks – 2 months ( ) 2months – 6 months ( )

6months – 1 year ( ) Over 1 year ( ).

19) How many conductors have you had in the past 2years:

less than 2 ( ) 3 – 4 ( ) 5 – 6 ( ) Above 7 ( )

20) How much money do you pay your conductor daily:

less than N200 ( ) N201 – N500 ( ) N501 – N1000 ( )

N1,001 – N2,000( ) Above N2,000 ( )

21) Is it cheaper to work without conductor:

Yes ( ) No ( )

22) If yes, why is it cheaper to work without conductror:

Theft ( ) Wage ( )

PART C – Industry specific

23) How much fuel do you buy everyday:

Less than N750 ( ) N751 – N1,500 ( ) N1,501 – N2,300 ( )

N2,301 – N3,000 ( ) Above N3,000 ( )

24) How much do you make every day:

less than N2000 ( ) N2,001 – N4,000 ( ) N4,001 – N6,000 ( )

N6,001 – N8,000 ( ) Above N8,000 ( )

25) Would you accept a loan to expand your Danfo business:

Yes ( ) No ( )

26) How often do you visit the mechanic:

Weekly ( ) Monthly ( )

Only when the car develops fault ( ) Rarely ( )

27) On average how much do you spend on the maintenance of the bus:

Less than N2,000 ( ) N2,000 – N5,000 ( ) N5,001 – N10,000 ( )

Above N10,000 ( )

28) Which Union do you belong to:

NURTW ( ) RTEAN ( ) NARTO ( ) None ( )

29) How do you pay your Union dues:

Per journey ( ) Daily ( ) Weekly ( ) Monthly ( )

Yearly ( )

30) How much do you pay daily to the Unions:

N500 – N1,000 ( ) N1,001 – N1,500 ( ) N1,501 – N2,000 ( )

Above N2,000 ( )

31) Who gives you the most worry:

Agbero’s ( ) LASTMA/VIO ( )

NURTW/NARTO/RTEAN ( ) Police ( )

32) How often have you been harassed by the Police/LASTMA:

Daily ( ) Weekly ( ) Monthly ( ) Rarely ( )

33) How much do you have to pay for the Police to let you go:

Less than N50( ) N51 – N100 ( ) N101 – N 200 ( ) Above N200 ( )

34) How much do you have to pay for LASTMA/VIO to let you go:

Less than N2,000( ) N2,001 – N5,000 ( ) N5,001 – N 10,000 ( )

N10,001 – N20,000 ( ) Above N20,000 ( )

34) What is the biggest challenge facing you in this industry:

Passengers ( ) Agberos/Touts ( ) LASTMA/VIO ( )

Police ( ) Fellow drivers ( )

PART D – Person specific

35) How many children do you have:

2 and below ( ) 3 – 5 ( ) 6 – 8 ( ) 9 and above ( )

36) How many Girlfriends/ wives do you have:

1( ) 2 – 3 ( ) 4 – 5 ( )

6 – 7 ( ) Above 8 ( )

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