A Documentary on Motorcycle Loan Schemes as It Affects Economic Empowerment and Urban Poverty Reduction Among Dispatch Riders in Ibadan

ABSTRACT
This study explores the Max Okada motorcycle loan scheme as a mechanism for economic empowerment and poverty reduction in Nigeria, particularly among low-income youth. Designed to provide motorcycles on an instalment basis, the scheme enables beneficiaries to work as dispatch riders and generate income. Conducted in Ibadan, Oyo State, the research adopts a qualitative approach, using semi-structured interviews with five participants, two programme officials and three beneficiaries. Thematic analysis reveals that while the scheme offers immediate financial relief and improved access to employment, participants face notable challenges. These include high daily repayment pressures, exposure to economic shocks, and insufficient training. Although programme officials regard the initiative as a promising response to youth unemployment, they acknowledge its limited reach and structural shortcomings. Broader systemic issues, such as the absence of insurance, weak social protections, and informality in operations, undermine the scheme’s long-term sustainability. Despite these challenges, Max Okada demonstrates potential as an innovative micro-enterprise support model. To enhance its developmental impact, the study recommends flexible repayment options, expanded training programs, improved social safety nets, and stronger institutional partnerships. Such reforms could transform the scheme from a temporary income source into a durable poverty-alleviation strategy.

Key words: loan, Income, Employment, livelihood, scheme