Owning a Car in Nigeria? Here’s What It Costs to Maintain It in 2025

Owning a car in Nigeria goes beyond the purchase price. Yearly expenses on fuel, maintenance, and repairs often come as a surprise to many, especially first-time drivers.

Beyond the purchase price, owners must cover fuel, routine servicing, tyres, insurance, unexpected repairs, parking, and other hidden costs.

I spoke to two car owners in Lagos, a commercial driver and a middle-class neighbour. The former said fuel and spare parts quietly swallowed most of his monthly income, while the latter cited insurance and parking fees as the most surprising line items.

Knowing annual ranges for each cost area helps you budget properly and avoid the shock that turns a convenience into a financial burden.

1. Fuel cost

Petrol is the single biggest recurring cost for most drivers. An economy car doing around twelve thousand kilometres a year and using about eight litres per 100 kilometres will spend roughly ₦200,000 on petrol at common market prices.

2. Routine servicing and consumables

Small services for oil filters and checks come every three to five months, depending on usage frequency and vehicle condition. Major services that cover brakes, spark plugs, and belts can be significantly pricier.

Budgeting for three to four minor unexpected services, as well as a major one, provides a sensible annual range of approximately ₦150,000 to ₦300,000 for everyday cars when using reputable workshops.

3. Tyres, batteries, and wearable parts

Tyres and batteries wear out with use, and poor roads accelerate the need for replacement. Economy tyres cost much less than international brands but require more frequent changes.

For an average car, expect to spend between ₦50,000 to ₦200,000 a year on tyre rotation, alignment, and at least one battery replacement every few years, factored into the annual budget.

4. Insurance registration and licensing

Comprehensive insurance typically costs three to seven percent of the insured value each year. For a ₦3,000,000 vehicle, that works out to roughly ₦90,000 to ₦210,000.

Cheaper third-party policies exist but offer less cover. Add state licensing and occasional inspection fees, which vary by location and can add to yearly paperwork costs.

5. Unexpected repairs and spare parts

Breakdowns and collision repairs are unpredictable but inevitable. Minor repairs from local mechanics can range from ₦50,000 to ₦100,000, while major engine or transmission jobs for older or imported cars can hit several hundred thousand naira.

Setting aside a repair fund between ₦100,000 and ₦500,000 a year smooths shocks when things go wrong.

6. Parking tolls and day-to-day running costs

Daily parking fees, bridge or toll payments, and routine cleaning can add up over the year. Regular paid parking and occasional tolls might total ₦20,000 to ₦100,000 depending on your neighbourhood and commuting habits.

Remember occasional towing or emergency pickup charges, which are commonly expensive when you need them.

7. Depreciation, finance, and opportunity cost

Cars lose value every year, which is a real cost, especially in the first few years after purchase. Depreciation plus interest on financed purchases raises the effective annual cost significantly.

When you include finance charges and lost opportunity returns, consider depreciation of several hundred thousand naira annually in your total ownership calculation.

A careful owner who uses independent mechanics and drives modestly might budget three hundred thousand to seven hundred thousand naira a year.

While a driver who prefers dealer services, higher quality parts, or an SUV should plan for ₦700,000 to ₦2,000,000 annually and set up a monthly sinking fund to cover these costs.