According to a 2024 assessment by Mercer, an American consulting firm, Abuja is the cheapest African city for expats to live.
According to the report, Nigeria’s commercial metropolis, Lagos, is the continent’s second cheapest city, and it is one of the cities with significant declines in cost of living rankings for expats from 2023 to 2024.
According to the report, Lagos slipped 178 positions to 225th from 47th in 2023.
According to the Mercer analysis, currency devaluations were a crucial role in making Lagos more affordable for international professionals.
The naira fell from 464/$ on June 9, 2023, to 1483.31/$ on Friday, following the harmonization of the country’s foreign exchange market on June 14, 2023.
It noted, “A number of key factors have influenced the global economy in recent years.” In 2024, these factors will continue to influence the cost of living in large cities. Inflation and exchange rate variations have a direct impact on international mobile employees’ compensation and savings.
“Increased economic and geopolitical volatility, as well as local disputes and emergencies, have resulted in higher costs in areas such as housing, utilities, municipal taxes, and education. Higher-ranking cities (Hong Kong, Singapore, and Zurich) have experienced high living costs due to variables such as expensive housing markets, high transit costs, and higher costs of products and services.
“Conversely, in Islamabad, Lagos and Abuja the demonstrably lower costs of living of international assignees have, in part, been driven by currency depreciations.”
According to the survey, the cost of living is a crucial concern for expatriates when deciding where to relocate because it affects their quality of life and financial security.
It further stated that currency-induced decreases in the cost of living for international assignees occurred despite rising inflation in countries such as Nigeria and others.
Mercer evaluated 226 cities throughout the world, from most expensive to least expensive places to live.
It also stated, “African towns that placed highest in the global Cost of Living City Ranking include Bangui (14, up 12 places), Djibouti (18), and N’Djamena (21). The least costly cities in the region are 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.”
