BrandArena: Lagos Places Nigeria on Top of Global Mileage Ranking

Wednesday 25 November 2015

Lagos Places Nigeria on Top of Global Mileage Ranking

At present, Nigeria a country dependant on crude oil is experiencing a shortage of the product called petrol which has affected the daily activities of commuters. Even with the scarcity of petrol, Nigeria still comes on top in the average mileage ranking. The Carmudi team compared average country mileage and found out that population growth; rise in the price of real estate and petrol subsidy affects the distance cars travel. The cars examined ranged from 2 to 5 years old.

The research revealed that Nigeria’s average is 22.8% higher than the global calculation. The average mileage for used cars in Nigeria amounted to 51,764 km. After the first two years of driving, cars in Nigeria averaged 35,714 km. The number of miles on average almost doubles after five years to amount to 59,938 km showing a steady increase in the distance travelled by commuters.

The leading contributor to the higher than average mileage in Nigeria is Lagos. The city population has grown 20% since 2006 due to urban migration, favorable business conditions and high birth rates. Due to the population increase, the former capital is experiencing a significant housing shortage, as well as high levels of migration from the countryside, pushing real estate prices up. Lagos state government estimates that 4 million homes must be constructed to close the current housing gap.  The outskirts of Lagos have become preferable in terms of residential areas and people prefer to travel from the outskirt to the city and back on a regular basis to avoid sky high real estate prices. This has increased the collective millage for Lagos state and ultimately Nigeria on the global ranking.

When examining diesel vs. petrol cars in Nigeria, we see that cars powered by petrol fuel are clearly driven more. Petrol cars in Nigeria were driven 77% further on average than diesel cars. The main contributing factor is petrol state subsidies, which make driving petrol cars cheaper on average. It’s also the reason for continuous increase in amount of petro cars on Nigerian roads.

Citing listings and search trends on the Carmudi website, Amy Muoneke, Managing Director Carmudi Nigeria said “over 97% of the cars listed on the website are petrol engine cars and 99% percent of the people searching for cars on the Carmudi Nigeria website search for petrol engines. Even though diesel powered cars are cheaper, searchers still prefer buying petrol powered cars and with over 35,000 plus listings Carmudi Nigeria offers a wide range of cars for car buyers to choose from.

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