The Oyo State Government has begun implementing measures to address bottlenecks surrounding vehicles acquired through hire purchase agreements, particularly those affecting transport operators across the state.
The intervention is aimed at curbing what stakeholders described as “draconian” practices by some vehicle owners who seize vehicles despite substantial payments already made by operators under the popular “work-and-pay” arrangement.
This was disclosed during a stakeholders’ engagement held at the Ministry of Investment, Trade, Cooperatives and Industry on Friday in Ibadan.
The Commissioner for Investment, Trade, Cooperatives and Industry, Mr. Adeniyi Adebisi, explained that the engagement was organised following a resolution of the Oyo State House of Assembly calling on the government to intervene and ensure fairness, sustainability and transparency in hire purchase operations.
Represented by the Permanent Secretary of the Ministry, Mr. Olajide Okesade, the Commissioner reaffirmed the commitment of the Governor Seyi Makinde-led administration to people-centred governance, noting that the engagement was designed to gather practical insights toward developing a balanced policy framework that protects livelihoods while encouraging responsible enterprise practices.
The meeting had in attendance representatives of the Motor Dealers Association of Nigeria (MODAN), the Automobile and Motor Dealers Association of Nigeria (AMDON), the Oyo State Park Management System (PMS), the State Intelligence Department (S.I.D.), and other key stakeholders.
Speaking during the session, the Chairmen of MODAN and AMDON, Captain Oluwole Odeleke (rtd) and Asiwaju Olurinde Kolawole, stated that hire purchase, popularly known as “work-and-pay,” remains a widely used model for acquiring income-generating assets such as tricycles, motorcycles and vehicles.
They emphasised the need for clearer operational standards, improved documentation and realistic repayment structures to reduce disputes and strengthen trust among all parties involved in the system.
Also speaking, the Vice Chairman of the Oyo State Park Management System, Alhaji Tajudeen Jimoh, highlighted the socio-economic pressures faced by many youths who depend on hire purchase arrangements for economic empowerment, describing the engagement as timely and necessary.
Officers of the State Intelligence Department (S.I.D.), Eleyele Police Station, sensitised participants on the provisions of the Hire Purchase Act, urging all parties to embrace transparency, written agreements and lawful procedures in resolving disputes.
Other stakeholders at the meeting agreed that the outcomes of the discussions would be harmonised into formal recommendations for legislative consideration and subsequent policy action, aimed at establishing a humane, structured and sustainable hire purchase system in Oyo State.
