Market News

Nigeria’s commercial hub, Lagos, and the capital city, Abuja, have been identified as the cheapest cities globally for expatriates to live in, according to the 2024 Mercer Cost of Living Survey released on Monday. The depreciation of the naira has significantly reduced the cost of living for international workers in these cities.

Naira’s decline began last year after President Bola Tinubu implemented a cocktail of reforms, abandoning the long-standing currency peg established by former Central Bank Governor, Godwin Emefiele, which had kept the naira artificially high.

On Saturday, inflation reached 33.95 per cent, driven primarily by rising prices of food and non-alcoholic beverages, which accounted for 17.59 per cent of the increase. Housing, water, electricity, gas, and other fuels contributed 5.68 per cent, while clothing and footwear, transport, and household furnishings added 2.60 per cent, 2.21 per cent, and 1.71 per cent respectively.

The Mercer survey highlighted that Lagos and Abuja experienced the most substantial drops in cost of living rankings among 226 global cities between 2023 and 2024. Last year, Lagos was ranked the 47th most expensive city, and Abuja was 140th.

In the latest survey, Lagos plummeted 173 spots to 225th, with Abuja just behind at 226th. The report noted that currency devaluations were a major factor in these declines.

Despite the reduced cost of living for expatriates due to currency devaluation, inflation has risen significantly in many of these countries. Between March 2023 and March 2024, Nigeria and Angola both saw inflation rates soar above 20 per cent.

Among the 10 most expensive cities for international workers, half are in Western Europe, with Switzerland hosting four. However, Southeast Asian cities dominate the top positions, with Hong Kong and Singapore ranked first and second respectively.