As the impact of current economy continues to hit hard on the cost of living in Nigeria, particularly in Lagos and Abuja.the country’s major cities have become an irresistible destinations for foreigners, as it offers a cheaper cost of living compared to other global cities.
according to the 2024 Mercer cost of living survey that ranks global cities, Lagos and Abuja, Nigeria’s commercial and political hubs, has emerged as the cheapest cities globally for foreigners to reside in, as it saw Lagos move from the 173th spot to take the 225th position, while Abuja fell to the 226th position.
This development started as naira’s decline began last year after President Bola Tinubu introduced economic reforms, abandoning the artificial currency peg instituted by the former Central Bank of Nigeria governor, Godwin Emefiele.
The reforms led to a significant devaluation of the naira, making Lagos and Abuja attractive destinations for international workers.
Islamabad, Pakistan, was the only city ranked lower than the two Nigerian cities. In contrast, Hong Kong and Singapore emerged as the most expensive cities for international assignees, followed by Western European cities like Zurich, Geneva, and Basel.
The survey attributed the significant decreases in the cost of living rankings to currency decrease, which have offset the effects of rising inflation in many countries, including Nigeria and Angola. Despite inflation rates exceeding 20% in both countries, the write down has made Lagos and Abuja more affordable for international workers.
However, the survey also notes that the decrease has occurred alongside rising inflation rates, which may affect the overall cost of living in the long term. Nigeria’s inflation rate rose to 33.95% in March 2024, driven primarily by food and non-alcoholic beverages, housing, water, electricity, gas, and other fuels.
The report’s findings have implications for international assignees and expatriates considering relocation to Nigeria.
While Lagos and Abuja offer relatively affordable living conditions, the country’s economic volatility and rising inflation rates may require careful consideration.
The 2024 Mercer cost of living survey highlights the significant impact of currency devaluations on the cost of living in Lagos and Abuja, making them the cheapest cities globally for expatriates.
