New Delhi: Nigeria’s financial hub Lagos, one of the largest export markets for Bajaj Auto Limited, has banned commercial motorcycles and auto rickshaws.

Shares of Bajaj Auto fell over 3% on the BSE following the news of the ban and also after the company reported a 22% decline in domestic two-wheeler sales in January.

Lagos government imposed the ban on commercial motorcycles and auto-rickshaws from 1 February following a rise in fatal accidents on its city roads.

Allaying concerns, Rakesh Sharma, executive director, Bajaj Auto, in an interview with CNBC-TV18, said though Nigeria contributes about 25% to Bajaj Auto’s exports, business to Lagos was not hit significantly.

The city contributes only 6-7% to the company's overall motorcycle exports, Sharma said.

Bajaj Auto’s international business contributed about 43% to the company's net sales in the third quarter. Africa, driven by Nigeria, Congo, Uganda and Ethiopia, recorded a growth of 15% year-on-year in Q3 of FY20.

Bajaj Auto exported 201,601 units in January, up 15% from a year ago.

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