Report: Naira Depreciation Makes Lagos And Abuja Becoming Most Affordable Cities For Expatriates Globally

Report: Naira Depreciation Makes Lagos And Abuja Becoming Most Affordable Cities For Expatriates Globally

Lagos and Abuja, the primary economic and political hubs of Nigeria, have been identified as the world’s most economical cities for expatriates, as per the 2024 Mercer cost of living survey. The depreciation of the Nigerian Naira is cited as the key factor driving down living expenses for international workers in these locations.

Last year, Lagos ranked 47th globally in terms of costliness, while Abuja stood at 140th. However, in the latest survey, both cities have plummeted significantly, with Lagos now at 225th place and Abuja at 226th. This steep decline in rankings reflects the impact of currency devaluation, which has overshadowed the high inflation rates prevailing in Nigeria, currently recorded at 33.95% overall and over 40% for food items.

The report underscores that these cities have witnessed the most substantial decreases in cost of living among 226 cities surveyed worldwide from 2023 to 2024. Despite inflation rates exceeding 20% in both Nigeria and Angola during this period, the devaluation of local currencies has led to a notable reduction in living expenses for international assignees.

Conversely, half of the top 10 most expensive cities for international assignees are situated in Western Europe, with Switzerland hosting four of these cities.