In Lagos, Nigeria’s bustling economic hub, getting around is more than just a daily necessity, it’s a decision that shapes finances, lifestyle, and well-being.
A Cowrywise report, Move Smart, Live Free: An Insight into the Real Cost of Getting Around Nigeria’s Urban Chaos, provides a detailed analysis of three primary transportation options: car ownership, ride-hailing, and public transport. Through the lens of Sola, a fictional young professional, the report breaks down the financial and intangible trade-offs of each mode, offering critical insights for Lagosians navigating the city’s chaotic urban landscape.
Car Ownership in Lagos: Status, Comfort, and a Hefty Price Tag
Owning a car in Lagos is often seen as a symbol of success, offering unmatched comfort, control, and social status. However, the report reveals that this milestone comes with significant financial and time costs. For a Nigerian-used Toyota Corolla priced at ₦4.9 million, the initial purchase is just the beginning. Annual ownership expenses, including fuel, maintenance, repairs, regulatory costs, and depreciation, total approximately ₦2.8 million, or ₦234,000 monthly. Over five years, the total cost of ownership balloons to ₦22.7 million, though factoring in resale value reduces this to ₦18.9 million.
Despite the high costs, car ownership has unique advantages. The report notes that Nigeria’s reliance on imported vehicles, coupled with exchange rate volatility and inflation, can lead to an annual increase in replacement value of ₦1.73 million (₦144,473 monthly), offering a partial hedge against inflation. However, this upside doesn’t offset the ongoing expenses, which require a substantial income. To keep transport costs within the recommended 10-15% of monthly income (per the 50/30/20 budgeting rule), Sola would need a net monthly salary of ₦1.2 million to ₦1.5 million, equivalent to an Assistant Manager at a commercial bank. Beyond finances, car ownership demands time for maintenance and navigating Lagos’ notorious traffic, which can erode productivity and well-being.
For professionals like Sola, whose jobs involve frequent client visits or late-night commutes, a car offers safety and reliability, enhancing professional image and peace of mind. Yet, the report underscores that these benefits come at a steep price, making car ownership a significant commitment that may not suit everyone.
Ride-Hailing in Nigeria: Convenience at a Cost
Ride-hailing services like Uber and Bolt have surged in popularity among Lagos’ young professionals, offering a balance of convenience, flexibility, and control without the upfront costs of car ownership. The Cowrywise report estimates the monthly cost of using Bolt for two daily trips at ₦476,000 for routes like Yaba to Lekki. This translates to an annual expense of ₦5.7 million, making ride-hailing the most expensive option over time despite requiring no initial investment.
The appeal of ride-hailing lies in its flexibility. Users can avoid the hassles of car maintenance, parking, or navigating traffic, and the service is particularly valuable for those prioritizing safety, especially for late-night or high-risk routes. However, the report highlights that sustaining this option requires a high income. For ride-hailing to fit within the 10-15% budgeting guideline, a monthly net income of ₦3.2 million to ₦4.8 million is necessary, far above the average earnings of most young professionals, even those at the Banking Officer level (₦1 million monthly).
For Sola, ride-hailing offers a practical short-term solution, especially if her career involves irregular hours or frequent relocations. However, the escalating costs make it unsustainable for daily commuting unless supplemented by other transport modes or supported by a significantly higher income.
Public Transportation in Nigeria: Affordable but Unreliable
Public transportation, primarily buses and danfos, remains the most affordable option for getting around Lagos. The Cowrywise report estimates monthly costs at ₦20,300 for two daily trips on routes like Yaba to Ikoyi, totaling just ₦243,600 annually. This affordability makes it accessible to a wide range of income brackets, requiring only ₦135,000 to ₦203,000 monthly income to stay within the 10-15% budgeting rule.
However, the low cost comes with significant trade-offs. Public transport is often unreliable, with inconsistent schedules and overcrowding, leading to time inefficiencies that can impact productivity. Safety concerns, particularly for late-night commutes or in certain neighborhoods, further diminish its appeal. The report emphasizes that while public transport minimizes financial strain, it sacrifices comfort, control, and peace of mind, making it less viable for professionals with demanding schedules or safety concerns.
For Sola, public transport could be a stopgap measure while saving for a car or during periods of financial constraint. Yet, the intangible costs—time lost in transit, reduced productivity, and potential safety risks—make it a less desirable long-term solution for those aspiring to a professional lifestyle.
Comparing the Options: What Makes Financial and Practical Sense?
The Cowrywise report’s comparison of car ownership, ride-hailing, and public transport reveals stark differences in cost and lifestyle impact. Public transport is the cheapest, with monthly costs of ₦20,300, but it offers the least comfort, reliability, and safety. Ride-hailing, at ₦476,000 monthly, provides convenience and flexibility but is prohibitively expensive for most, outpacing even car ownership in long-term costs. Car ownership, with monthly expenses of ₦234,000 (plus the upfront ₦4.9 million purchase), offers the highest comfort and control but demands a significant income and ongoing financial commitment.
For young professionals like Sola, earning ₦1 million monthly, the report suggests that saving for a car over two years (₦217,573 monthly, 22% of income) aligns best with the 50/30/20 rule and offers a sustainable path to ownership. Borrowing, while faster, is costly: a combination of a ₦3 million staff loan (15% annual interest) and a ₦1.9 million digital loan (84% annual interest) results in ₦588,667 monthly repayments, consuming 59% of income and risking financial strain. A hybrid option, combining a staff loan with family support—reduces repayments to ₦459,167 (46% of income), but access to such support isn’t guaranteed.
The report concludes that the best choice depends on individual priorities and circumstances. For low-income earners or those prioritizing cost-efficiency, public transport is the most practical, despite its drawbacks. Professionals with higher incomes (₦3 million+) may find ride-hailing viable for its flexibility, especially for short-term needs. Car ownership suits those earning at least ₦1.2 million monthly, offering long-term value for those needing control, safety, or a professional image, particularly if future plans include family responsibilities or frequent travel.
Ultimately, the Cowrywise report emphasizes that transportation decisions in Lagos extend beyond finances. Intangible factors—time, safety, productivity, and emotional well-being—play a critical role. Young professionals must weigh these against their income, career stage, and life goals to choose a mobility option that balances cost with quality of life. Whether opting for the affordability of public transport, the convenience of ride-hailing, or the status of car ownership, the key is to move smart and live free in Lagos’ urban chaos.
