The study examines the use of auto-rickshaw (three - wheeled cycle) as poverty alleviation
scheme in metropolitan areas of Lagos state Nigeria, with the aim of exploring the
significance of the scheme in solving beneficiaries’ financial challenges. Data were obtained
from secondary and primary sources. 200 structured questionnaires were randomly
administered to the tricycle operators in 24 stratified loading points in the metropolitan area
and information collected were analysed using descriptive and inferential statistical
techniques. Findings showed that 73.5% operators benefited and 26% did not benefit from the
scheme. The study also revealed that male operators (97.3%) dominated the scheme. Average
daily income of the operators is more than N2000 (13USD) while daily operating costs was
N1610 (11USD). There is a significant difference in financial difficulty of the operators
( ) in post-procurement of the scheme. Despite a positive change in
financial situations of operators at post-procurement of NAPEP tricycles
( ) and 81% operators’ rating of NAPEP tricycles in poverty
alleviation, some of the challenges facing the operators include high cost of the tricycle
coupled with the unfriendly payback period, extortion from police and local council officials,
problem of routes choice and competition with other road users. Based on the helpfulness of
the scheme, it is recommended that beneficiaries of the scheme be given loan directly at
moderate payback period, provision of parking facilities; educate operators about road safety
than extortion by police and local government officials. While the study revealed the benefits
and challenges of NAPEP policy regarding tricycles in alleviating monetary challenges of
applicants in the state, there is need to address observed challenges in the scheme and as well
prevent reoccurrence in the fourth face of the scheme.