Transportation plays a crucial role in the financial lives of young professionals in Nigeria. The choice is influenced by cost as well as lifestyle considerations.
Cost of Car Ownership
The study examines prices of four used cars in Nigeria: Toyota Corolla 2005 (₦4.0 million), Kia Rio 2007 (₦4.5 million), Toyota Camry 2005 (₦6.5 million), Toyota Camry 2007 (₦4.5 million). Young professionals like Sola can save ₦415,000 monthly to buy a car within a year or ₦217,000 over two years. If Sola purchases a used Toyota Corolla for ₦4.9 million, additional maintenance costs of ₦234,000 per month would bring her total 5-year expenses to ₦22.7 million, with a resale value of ₦3.8 million.
Cost of Ride-Hailing Services
Using the Bolt platform in Lagos, Sola's total fare for ride-hailing could amount to ₦461,176 a month, requiring a monthly income of ₦2.3-₦2.5 million to sustain it. This option eliminates upfront costs, but long-term expenses can exceed those of car ownership, especially with fluctuating pricing.
Cost of Public Transportation
Public transportation remains the most cost-effective choice for young professionals in Lagos. Typical bus fares could reach ₦115,000 per month. Although affordable and accessible, public transport poses challenges like delays and safety issues, making it less appealing for those who prioritize comfort and reliability.
The choice between car ownership, ride-hailing, and public transportation depends on the individual priorities of young professionals in Nigeria. Each option has its advantages and disadvantages that should be carefully considered.
