Baranda Economics - Street Hustle as Strategy at Balogun Market

A Messy but Brilliant Model That Keeps Dozens of People Economically Engaged

The Unique Business Model of Balogun Market

Those who know me understand that business model innovation is my passion. I often ask: how can we generate revenue sustainably? This question led me to an intriguing experience in Lagos this summer while I was simply trying to buy a suit.

A friend of mine, who works in men’s fashion, insisted on taking me to Balogun Market. I was hesitant. My childhood memories of Lagos markets were filled with chaos, counterfeit goods, and relentless haggling. It hardly seemed like the place to find a well-tailored suit. However, I trusted my friend’s judgment.

We met near GTBank in Tinubu Square and entered a complex that initially appeared like any other Lagos market: bustling corridors, endless shops, and the constant need to stay alert. I was asked to leave my laptop bag to avoid what Nigerians call “stories that touch” if it went missing. I handed it over to the attendant, who insisted on accompanying us, believing we had made a wise decision to ensure my laptop's safety.

Discovering the Complex Reality

Inside, things were not as they seemed. The entire multi-storey complex belonged to a couple. Initially, I assumed the attendants were full-time staff, uniformed and authoritative. However, I later discovered the reality was more complex.

The lady who escorted us was blunt and borderline rude. She quoted prices while my friend attempted to haggle. However, the negotiation felt ungrounded. Prices shifted constantly, depending on who spoke and what story they told. Eventually, we bought a suit, paid directly to the couple seated by the exit, and received a stamped receipt. My bag was retrieved from beside them, and the transaction felt complete. Or so I thought.

The Unexpected Exchange Experience

The next day, I realized the suit did not fit. Returning for an exchange around 4 PM, I witnessed something extraordinary. By this time, the building was teeming with street boys, known locally as “area boys,” all waving receipts and clamouring to be paid. To my surprise, even the attendants I thought were staff were among those presenting payment receipts. I watched in disbelief.

The business model operates like this: inflated pricing is not an accident but the model itself. Attendants, whether official staff or freelance touts, are encouraged to overprice items so they can be compensated for their role in the sale. Once customers pay, the owners keep the base price. Meanwhile, the markup is distributed among those who facilitated the transaction, whether it was a staff member or a tout who brought customers in from the street. Each evening, these middlemen queue with receipts, collect their share of the markup, and leave with sums that, in some cases, rival what white-collar workers might earn in a day or even month.

The Cycle of Money and Livelihood

Refunds are not allowed; only exchanges are permitted. In my case, the money I had paid the day before was already gone, absorbed into the system. The markup had been divided between the couple who owned the building and the attendant who guided us. In truth, the money never stays in one place; it is dispersed across a network of individuals who depend on this cycle for their livelihood.

I was shocked but also intrigued. Here was an ecosystem that blended formal retail control, represented by the couple at the exit, with informal street economics, including commissions, inflated prices, and cash redistribution. It was messy and frustrating as a customer, especially when I discovered that everything I had purchased was overpriced. One of the owners even told me outright, “Well, you have seen it; you can’t get a refund. Everything has already been shared.” Yet, upon reflection, I found it brilliant in its own way. The system does solve one problem: it provides street boys with an outlet to earn a daily income, however unstructured. Locals refer to this practice as baranda.

The Impact of the Business Model

This market has created a business model that keeps goods moving daily in significant volumes. It draws in otherwise unemployed youth, redirecting them from more destructive alternatives, and ensures that everyone in the chain has a stake in making sales happen. The area boys now have an additional incentive: to keep the business safe, because it directly pays them.

Seeing this model firsthand left me reflecting. Is it customer exploitation or value-chain inclusion? Is it chaos, or is it innovation? For all its flaws, it remains a system that keeps dozens of people economically active each day. One might even argue that the price inflation replaces what would have been absorbed as marketing costs in a more conventional model.

Conclusion: A Question for Reflection

So I put the question to you: could this street-hustle system be considered a strategy, a form of business model innovation at Balogun Market? Might it be refined into a pathway that draws young talent off the streets of Lagos, or is it simply a broken model dressed up as value chain inclusion? Curious to know your thoughts.

And yes, I got a selfie too 😃🤳

Mofoluke Ayoola is a global trade, leadership, and transformational consultant. She helps organisations and communities shape strategies that connect business model innovation with inclusive markets and leadership development, drawing lessons from both formal and informal economies. Alongside her consulting practice, she also reflects on values, purpose, life and faith and the ways tradition and contemporary life intersect.