Been thinking about tyres size and rolling road radii at work and remembered the car bible. Just used the tyre size calculator to work out possible speed differences at 70mph.
http://www.carbibles.com/tyre_bible_pg2.html
put in the figues for a stockish 16 inch set up (225 55 R16) and put up the specs for an 18 inch wheel (265 35 R18). Figures indicate at 70 mph the difference is approximately 1.8%. So at 70mph a car with 18's would be reading 71.25mph. My 3-4 % was a little optimistic!
Also on the site it mentions speedometer calibrations and your speedo can be more innacurate as the car ages. Also worth pointing out is that some of the best calibrated speedometers are made by porsche. They are calibrated for 300km/h. Thinking back to skylines when using my sat nav unit (also does GPS speed) I found that my speedometer varied by +or - 1mph. So the stock unit is pretty good at motorway speed (legal ones

). The question is since the car is JDM did Nissan actually bother to calibrate the factory speedometer for higher speeds since the car is factory limited to 120????
So to reitterate, I think he can and did hit 160 but due to spec (lack of) I would think it is unlikely that he hit an indicated 175. He simply doesnt have enough power.