Sola just got promoted to Banking Officer. Her salary? ₦1 million monthly. Her dream? To finally buy that Toyota Corolla she’s been eyeing. But after running the numbers, she’s hit a wall. Should she save, take a loan, or just stick to Bolt and Danfo?
If you’re a young professional in Lagos trying to figure out how to move smart without burning your whole salary on transportation, this guide is for you.
Bonus Option: What About Okada?
Many Lagosians, especially those in high-traffic zones, rely on motorcycles (okadas) for short, time-sensitive trips. They’re faster than cars in gridlock but come with major safety and legal concerns.
| Factor | Okada |
| Cost per trip | ₦200–₦500 |
| Monthly Estimate | ₦15K–₦25K (occasional use) |
| Time Efficiency | ✅✅✅ (in traffic) |
| Safety | ❌ |
| Legality | 🚫 (restricted in many areas) |
Hybrid Transport Strategies: How Lagosians Really Move
Most people don’t rely on just one method. A more realistic picture includes blending modes:
| Hybrid Strategy | Estimated Monthly Cost | Recommended Income Range |
| Public Transport + Bolt (nights/rainy days) | ₦120K–₦150K | ₦800K–₦1.2M |
| Car + occasional ride-hailing | ₦450K–₦550K | ₦1.5M+ |
| Danfo + bike-hailing for errands | ₦80K–₦100K | ₦800K+ |
These combinations can enhance flexibility, reduce costs, and improve safety without exceeding your budget.
Car Ownership Cost in Nigeria: Status or Strain?
Buying a Nigerian-used car sounds like a boss move. But what does it really cost?
| Category | Monthly Cost | Annual Cost | Upfront Cost |
| Fuel, Repairs & Maintenance | ₦234,000–₦300,000+ | ₦2.8M–₦3.6M+ | ₦4.9 million |
| Depreciation & Regulatory Fees | ₦91,250 | ₦1.1 million | – |
| Comprehensive Insurance | ₦25,000–₦41,000 | ₦300K–₦500K | – |
| Security (tracking, guards) | ₦10,000–₦25,000 | ₦120K–₦300K | – |
| Emergency Fund Allocation | ₦30,000–₦50,000 | ₦360K–₦600K | – |
| Total (Est.) | ₦390K–₦500K+ | ₦4.6M–₦6.3M | ₦4.9 million |
Maintenance Reality Check: Lagos traffic increases wear and tear. Typical monthly expenses might include:
- Engine servicing: ₦30K–₦50K
- Suspension fixes: ₦40K–₦70K
- Tyre replacement: ₦80K (every 6 months)
- Fuel: ₦200K+ depending on commute and current pump prices
- Emergency repairs: ₦200K–₦500K yearly (ideal to set aside)
Time Cost Analysis: Because Time Is Money
Your time has value. Let’s quantify it:
| Transport Mode | Avg. Daily Time | Monthly Time (hrs) | Stress Level |
| Car (owned) | 2–3 hrs | 45–60 hrs | Medium |
| Ride-hailing | 1.5–2 hrs | 35–40 hrs | Low–Medium |
| Public Transport | 3+ hrs | 60+ hrs | High |
| Okada (short trips) | 30 mins | N/A | High (risky) |
Stress & Health Impact: Chronic commute stress can affect concentration, sleep quality, and even long-term mental health. This translates to lost productivity and missed opportunities. Budgeting for less stressful transport during peak periods (e.g., rainy season, fuel scarcity) can be a smart move.
Location Matters: Mainland vs Island
Living far from work increases both cost and stress. For instance:
- Mainland to Island (e.g., Ikeja to Lekki): longer hours, higher fuel or Bolt costs
- Island to Island (e.g., Lekki to VI): shorter, faster, often cheaper
If you earn ₦1M and live on the Mainland but work in Lekki or Ikoyi, consider relocating closer before buying a car. The long-term savings on fuel, time, and stress can be massive.
Save or Borrow to Buy a Car?
Let’s break it down using Sola’s situation.
| Financing Option | Monthly Cost | % of ₦1M Salary | Comment |
| Save for 1 Year (20% ROI via mutual fund) | ₦417,823 | 42% | Fast, but strains her budget |
| Save for 2 Years (16.5% ROI via Cowrywise Money Market Fund) | ₦223,350 | 22% | Aligned with 50/30/20 rule |
| Loan (Staff + Digital) | ₦588,667 | 59% | Quick car, but heavy stress |
Where to Earn 16–20% Returns? Cowrywise offers regulated investment options like Money Market Funds, Fixed Income Plans, and Treasury-backed products with competitive yields and low risk.
Consider Alternative Car Options
While the Toyota Corolla is popular, it’s not the only game in town. Other reliable options include:
- Hyundai Elantra (₦3.5M–₦4.5M Nigerian-used)
- Honda Civic (₦4M–₦5M)
- Kia Rio, Toyota Yaris, or older Camrys
Choosing a less-demanded but well-maintained model could save you millions upfront and on maintenance.
So, What Should Sola (and You) Do?
- If you earn ₦1M and live far from work, prioritize relocating before buying a car.
- If you earn ₦1.2M–₦1.5M+, and want freedom + comfort, start saving with Cowrywise.
- If you earn ₦2.5M+, ride-hailing can be a premium, low-stress option.
- Use ride-hailing + public transport while you build your car fund.
- Mix and match modes smartly: Bolt at night, Danfo by day.
- Budget for insurance, security, emergency repairs, seasonal fuel hikes, and rainy day options.
Know your exit options: A car bought for ₦4.9M today could resell at ₦6.1M in two years due to FX inflation. Plan for a resale or upgrade when life changes
Don’t Just Move, Plan Ahead
Transport in Lagos isn’t just about getting from Point A to B. It’s about aligning movement with your goals, income, and lifestyle.
- Want to simulate your car savings plan?
- Curious how much your commute is costing you?
