A 2024 ranking by Mercer, an American consulting firm, declared Abuja the cheapest African city for expatriates to live in.
According to the report, Nigeria’s commercial capital, Lagos, is ranked the second cheapest city on the continent, noting that it is among the cities that witnessed significant decreases in the cost of living rankings for expatriates between 2023 and 2024.
It stated that Lagos dropped significantly by 178 places to 225th from the 47th position in 2023.
The Mercer report identified currency devaluations as the significant factor that increased the affordability of Lagos for foreign professionals.
The local currency depreciated from 464/$ on June 9, 2023, before the harmonisation of the country’s foreign exchange market on June 14, 2023, causing the naira to weaken to 1483.31/$ on Friday.
It stated, “A number of key factors have influenced the world’s economy in recent years. In 2024, these factors continue to have an impact on the cost of living in major cities. Inflation and exchange-rate fluctuations are directly affecting the pay and savings of internationally mobile employees (or those executing an international assignment).
“Heightened economic and geopolitical volatility, as well as local conflicts and emergencies, have led to additional expenses in areas such as housing, utilities, local taxes, and education. In the case of the higher-ranking cities (Hong Kong, Singapore, and Zurich), factors such as expensive housing markets, high transportation costs, and higher costs of goods and services have all contributed to high living costs.
“Conversely, in Islamabad, Lagos and Abuja the demonstrably lower costs of living of international assignees have, in part, been driven by currency depreciations.”
The report stated that the cost of living was a major consideration for expatriates when selecting a city for relocation since their choices determine their quality of life and financial stability.
It added that the currency-induced falls in the cost of living for international assignees had happened even though inflation had risen in countries like Nigeria and others.
Mercer ranked 226 cities in the world in order, from the most expensive to the least expensive places to live.
It added, “African cities that placed highest in the global Cost of Living City Ranking are Bangui (14, up 12 places), Djibouti (18) and N’Djamena (21). The least expensive cities in the region include Blantyre (221), Lagos (225, down 178 places) and Abuja (226).
“The comprehensive ranking serves as a valuable compass, providing guidance through the intricate landscape of living expenses in cities worldwide.”
