Global Ranking: Naira Devaluation Puts Lagos, Abuja Among Cities With Lowest Cost Of Living For Expatriates
The report said that Hong Kong, Singapore and Zurich are currently the costliest cities for international workers.
Mercer’s 2024 cost-of-living data has ranked Lagos and Abuja among the lowest cities in the world regarding cost of living for international workers.
The report said that Hong Kong, Singapore and Zurich are currently the costliest cities for international workers.
Mercer’s annual Cost of Living City Ranking, 2024 edition listed 226 cities in the world in order, from the most expensive to the least expensive places to live.
“The comprehensive ranking serves as a valuable compass, providing guidance through the intricate landscape of living expenses in cities worldwide,” the firm said.
According to Mercer, the key factors that have influenced the world’s economy include inflation and exchange-rate fluctuations which directly affect 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 which 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 cost 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,” it added.
According to a breakdown of the ranking, “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).
“Between 2023 and 2024, the most significant decreases in cost of living rankings were seen in cities in Africa (Lagos, Luanda and Abuja), South America (Santiago) and Eastern Asia (Osaka).
“Currency devaluations have been a significant driver of these decreases.
“The currency-induced falls in the cost of living for international assignees have happened even though inflation in many of these countries has risen.
“For example, between March 2023 and March 2024, the inflation rate increased to more than 20% for both Nigeria and Angola.”
