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Lagos and Abuja, Nigeria’s industrial and political capitals have been ranked the world’s least costly cities for expatriates, based on the 2024 Mercer value of residing survey.
The numerous depreciation of the Naira has been recognized as the first issue for this rating, making residing prices for worldwide staff extra reasonably priced.
The report attributes the Naira’s decline to reforms launched by President Bola Tinubu, which ended the long-standing forex peg applied by former Central Financial institution of Nigeria Governor Godwin Emefiele.
Consequently, Lagos and Abuja skilled essentially the most important drops in the price of residing rankings amongst 226 world cities between 2023 and 2024.
Regardless of Nigeria’s hovering inflation charge at the moment at 33.95% with meals inflation over 40%, the depreciation has made these cities cheaper for expatriates.
In 2023, Lagos was the forty seventh costliest metropolis globally, whereas Abuja was ranked one hundred and fortieth. This yr, Lagos plummeted 173 spots to 225th, and Abuja fell to 226th.
The survey notes, “Foreign money devaluations have been a big driver of those decreases. The currency-induced falls in the price of residing for worldwide assignees have occurred despite the fact that inflation in lots of of those nations has risen.”
The survey additional highlights that between March 2023 and March 2024, inflation charges elevated by greater than 20% in each Nigeria and Angola.
In distinction, the costliest cities for worldwide assignees are predominantly in Western Europe, with Switzerland housing 4 of them. Nonetheless, Hong Kong and Singapore lead the checklist, rating first and second, respectively.
In Africa, Lagos and Abuja are the most cost effective cities, with Bangui, the capital of the Central African Republic, rising 12 locations to 14th globally. Djibouti and N’Djamena comply with carefully, rating 18th and twenty first, respectively.
Conversely, Blantyre, Lagos, and Abuja are among the many least costly African cities, ranked 221st, 225th, and 226th globally.