This study was on the challenges facing Tricycle Transportation Business (TTB) and its effects on the local economy of Wa Municipality. It employed the mixed research design in both data collection and analysis. A sample size of 108 was used for the study. Questionnaires, interview guide and observation guide were used for data collection. The study found that the main challenges facing tricycle transportation in the Municipality were: lack of designated parking spaces, careless driving among some drivers, underage driving and single roads with static congestion (traffic), overloading, over speeding, attacking and robbing people in the night and high fares charged. The study further revealed that the TTB has contributed to: difficulty in movement in the Municipality, high fares, high mortality from crashes as well as increased theft and attack and robbery cases facilitated by the use of the tricycles in the Municipality. The study concluded that there were several challenges confronting the tricycle transportation business which had negative effects on the local economy of the Wa Municipality.