The demand for oil in Nigeria has grown significantly during the last four decades with an annual average growth rate of 5.4% from 1973 to 2019. The 1973 and subsequent global oil shocks brought a large influx of petrodollar revenue to Nigeria, which led to an unprecedented rise in individual incomes. The oil-driven revenues also encourage the Nigerian government to move from market-based pricing of petroleum products to a subsidy-based pricing policy. These two factors brought a complete change in individual lifestyles, particularly regarding the choice of means of transportation in Nigeria. Additionally, factors such as population growth, urbanisation boom in construction activities and smuggling of highly subsidised products to energy-deficient neighbouring countries also add to the problem.Accordingly, the vehicle stocks enlarged by more than tenfold within the last four decades; leading to an increase in oil demand in Nigeria. Consequently, oil consumption raised from 16,000 b/d in 1960 to 35,000 b/d in 1980 to 446,000 b/d in 2019 (OPEC, 2020). The problem is compounded by the provision of subsidies on oil products; annually government spends about 4% of GDP on petroleum subsidies. These factors encourage inefficiency and cross-border smuggling. However, the country relies heavily upon the road transport system, with insignificant rail networks and an inefficient air transport system.