Cost of Living in Abuja

The cost of living in Abuja is deceptively expensive; in fact, the 2011 ECA ‘Cost of Living’ Survey ranked the city as the 31st most expensive in the world, ahead of both Manhattan and Singapore.  
 

Such a fact often comes as a shock to expats, especially those who were intending to save, rather than spend money, while working abroad.  

 

Foreigners moving to Nigeria should realise that this is a developing country with a vast gulf between rich and poor. While many of its citizens live in poverty, a select few experience a very different lifestyle, utilising their wealth to fund international business ventures, unlimited shopping sprees and private education.  Nigeria’s well-to-do are not just millionaires, they are billionaires. And naturally, this has a skewing effect on the country’s economy.

 

 

Since the 1990s, the cost of accommodation in Abuja has been well beyond the average professional’s wages.
 

It costs roughly N3,000,000 per annum, which is approximately £12,000, to rent a one-bedroom bungalow in the capital city will. Plus, the majority of contracts are only available on a two-year lease, and require that the total amount be paid up front, rather 

than in monthly instalments.  

 

At one point in Abuja, towards the beginning of the 1990s, two years’ rent for an expat-friendly property was equivalent to the total purchase price of a house.  Therefore, for those who already had cash available, it made more sense to buy.  This resulted in a property boom in the 1990s with houses being bought to let.

 

Within this period, international companies, such as Johnson and Johnson and Unilever, invested in staff accommodation throughout Nigeria.  
 

It follows that for the majority of expat workers housing will be provided as part of the relocation package, and very often the accommodation will also include a security guard and a housekeeper.
 

If you’ve only been allocated an accommodation allowance, do be sure the amount promised is enough to secure appropriate housing in Abuja.

 

 

If moving to Nigeria for work and employed by a large company, you are quite likely to be offered the services of a complimentary driver as part of the package.  Otherwise, to hire a personal driver costs around N25,000 which is just under £100 per month.

 

 Although this sounds excessive, it is necessary, especially if you want to get from A to B on time and unharmed.  Abuja’s roads are among the best in Nigeria - rickshaws are banned, traffic wardens are plentiful and the government have taken care to cover most of the pot holes.  However, despite this, they are still very basic. The main roads are chaotic, congested and a hazard to the inexperienced, foreign driver. 
 

Nigerian drivers very much adhere to their own traffic rules and only a local driver will be aware of these.

 

 

Within Abuja, the most sought after schools for private education are the Lead British and the American International.  According to its web site the Lead British school offers a “quality education based on both the Nigerian and the British curriculum.” Whereas the American International School, follows the American curriculum and has been specially designed for students who intend to continue their studies within the USA. 
 

Funny enough, the alumni of both schools mainly consist of the sons and daughters of Nigeria’s leaders, as well as a good proportion of overseas pupils from the USA and the UK. 
 

The cost for a year at the American International School for a pupil over the age of twelve years old is approximately £10,000.

 

There are other schools throughout Abuja, however, the majority are of a very basic standard and are unlikely to appeal to foreign pupils.  Compared to the UK, the classrooms would be poorly equipped and the teaching methods would be considered old fashioned.  
 

 

The cost of western food items in Nigeria is significantly inflated. If you are intending to buy the same products as you would at 

home, then this will get expensive.  You can expect to pay about a third more for items such as cornflakes and chocolate.   A standard 500g box of Kellogg’s corn flakes costs N1,000, around £4, in the bigger supermarkets throughout Abuja.

 

If, however, you can be flexible with your eating habits and adapt to a Nigerian diet, then you will find that the local produce is cheap. Nigeria has an excellent climate, so an array of fruits and vegetables are available all year round.  Wuse Market in Abuja is the best place to go food shopping. Be warned though, this is a market in the traditional sense, so if you can brave the noise, crowds and confusion then you can get a bargain.

 

There are very few international clothing stores present in Abuja, and as is the case with food, prices for western clothes are high.  A simple pair of trousers is likely to cost upward of £60.  If you want value for money, it is best to either select the material and have clothes made-up yourself, or to buy second hand from any of the clothes dealers in Abuja.  
 

Once again though, this is a time consuming process and you need to be ready to barter.
 

Arguably, the most up-to-date shopping mall is the Silverbird Plaza, Memorial Drive, which is home to Mango and T.M. Lewin stores. 

   

 

The power supply in Nigeria is inconsistent and unreliable.  There will be times, generally in the afternoon, when the power supply goes off completely.  

 

While this may be acceptable at home, it is not so easy to stomach if you are running a business, in which case you will need to invest in a generator. These convenient power supplies can be one of the biggest drains on your finances, they are expensive to buy and install and incredibly costly to run.

 

Generators will need to be refuelled regularly and checked consistently to ensure they are safe. Fumes from generators are lethal and still kill hundreds of people each year.  Many small businesses decide to do without generators and find it easier and more economical to close for a few hours.  If a generator is absolutely vital to your business then the cost needs to be balanced carefully against the income, as quite often, generators are a false economy and will cause small businesses to operate at a loss.

 

It is impossible to give an accurate cost of running a generator as it depends on the quantity of fuel you purchase, the amount of power you require and where in Nigeria you are located.  Nigeria spends around 13 billion USD every year powering generators and President Goodluck Jonathan, has expressed his concern and vowed to implement a reform.

 

Although only a small cost, this is an added extra which should be taken into account.  Water in Nigeria is not safe for Nigerians nor foreigners to drink. The government never managed to install a piped water system, and as the population has grown so fast, it seems unlikely that they ever will.

 

For teeth brushing, food preparation, tea making and general drinking – bottled water should always be used. Nestle pure water and Eva water by Coca cola are the most commonly sold brands, and although they are inexpensive to buy, it is an expense which will add up.

 

This is a hidden cost which can really put a dent in the bank balance.  It is unlikely that maintenance workers in Nigeria will have been trained to the same level as those throughout the UK. Many pick up their trade simply through having watched a parent do the same job and will have received no official training of their own. Although Nigerian electricians, plumbers and roofers will do the best they can with the knowledge they have, be prepared for every job to be an expensive and time consuming process.  Repair work is often carried out by young men who diagnose the problem through a process of elimination, and even then repairs are not likely to be a long-term solution. Remember the more basic the model, the easier it will be to repair. So, while in Nigeria try to go without the mod cons or be prepared to spend a fortune on poor repair work.