- Purchase the complete Expat Arrivals Nigeria Guide (PDF)
Underestimating the high cost of living in Nigeria is one of the worst relocation mistakes an expat can make. Expats with little knowledge of this West African country may be quick to assume life in Lagos or Abuja is relatively affordable. In actuality, Nigeria’s two largest urban centres are ranked as two of the most expensive cities in Africa. Lagos ranks 55th out of 227 cities in Mercer's 2022 Cost of Living Survey – making it more expensive than Sydney.
Rural areas and smaller urban centres in Nigeria levy a far less expensive lease on life, but the majority of expats are concentrated in these two aforementioned locales.
Many may wonder how an African country often reprimanded for its high levels of poverty, crime and corruption can beat out global powerhouses such as Hamburg and Barcelona in the cost of living calculations. The answers lie in oil reserves, which have allowed economic expansion and population growth to explode and mushroom. As a result, private investment in luxuries and amenities catering for businesses and foreigners skyrocketed, and prices followed.
Cost of accommodation in Nigeria
The cost of accommodation in Nigeria is undeniably high. In most cases, hiring companies will not only find and secure housing for their expatriate staff, but they will also foot the bill. In fact, many foreign companies have purchased or sub-let housing in areas that have become known as expat enclaves, and so are well-furnished and easily prepared to make the necessary home arrangements. This can be a life-saver as, otherwise, expats may face having to pay several months to a year upfront in terms of rent.
Additionally, due to Nigeria’s high crime rates and unreliable electricity supply, expats will also need to prepare to account for security costs and extra facility (generator) costs.
Generators
The power supply in Nigeria is inconsistent and unreliable. There may be times when the power supply goes off completely. Consequently, many expats and locals invest in a generator. These convenient power supplies can be one of the biggest drains on one’s finances. They are incredibly costly to buy, install and run as they will need to be refuelled regularly and checked consistently to ensure they remain safe.
Cost of transport in Nigeria
Much like accommodation, the cost of driving and getting around in Nigeria can also levy some unexpected fees. Most expats prefer to hire a driver to negotiate the treacherous traffic and legendary gridlock that besiege roadways that are far below standard. This individual’s monthly salary must be tacked onto the normal costs associated with transport (car payments, petrol and car insurance). Nevertheless, employers will often subsidise these costs.
Taking public transport in Nigeria is not a highly-recommended option. The ramshackle buses and improvisational motorbike taxis (okadas) are often unroadworthy and risky.
Cost of education in Nigeria
With local schools not being an option for expats, those moving to Nigeria with children need to factor the cost of private schooling into their budgets as well. Tuition fees for private international schools are known to be high. Most of these schools’ fees will also not cover things such as uniforms, textbooks, school trips or even end-of-year external exams. It is worth negotiating an allowance for school fees in an expat employment contract.
Cost of living in Nigeria chart
Prices may vary across Nigeria, depending on product and service provider. The list below shows average prices in Lagos in January 2023.
Accommodation (monthly rent) |
|
Three-bedroom apartment in the city centre |
NGN 2,300,000 |
Three-bedroom apartment outside the city centre |
NGN 1,100,000 |
One-bedroom apartment in the city centre |
NGN 700,000 |
One-bedroom apartment outside the city centre |
NGN 340,000 |
Food and drink |
|
Dozen eggs |
NGN 1,200 |
Milk (1 litre) |
NGN 1,200 |
Rice (1kg) |
NGN 1,260 |
Loaf of white bread |
NGN 620 |
Chicken breasts (1kg) |
NGN 4,400 |
Pack of cigarettes (Marlboro) |
NGN 520 |
Eating out |
|
Three-course meal for two at a mid-range restaurant |
NGN 20,000 |
Big Mac meal |
NGN 7,800 |
Coca-Cola (330ml) |
NGN 182 |
Cappuccino |
NGN 1,530 |
Bottle of beer (local) |
NGN 840 |
Utilities/household |
|
Mobile call rate (per minute – mobile to mobile) |
NGN 18 |
Internet (uncapped ADSL or cable – average per month) |
NGN 12,000 |
Basic utilities (average per month for a standard household) |
NGN 41,000 |
Transportation |
|
Taxi rate/km |
NGN 1,000 |
City-centre public transport fare |
NGN 400 |
Gasoline (per litre) |
NGN 168 |
Further reading
►For more on managing your finances in Nigeria, see Banking, Money and Taxes in Nigeria
►Get insights into what expat employment is like in Working in Nigeria
Expat Interviews
"Almost all the 'at home' comforts are more expensive. Airtime (for cell phones) is cheap, internet is about the same, and processed foods are often imported and are thus more expensive. Generally, if you can find products made in Nigeria, they are very affordable." Read more in our interview with Vena Namukasa.
"If a company isn't helping with your relocation and paying for your housing etc, it would be hard to relocate here." Find out more about what a typical expat spends their money on in Nigeria in this interview with Keli.
Are you an expat living in Nigeria?
Expat Arrivals is looking for locals to contribute to this guide, and answer forum questions from others planning their move to Nigeria. Please contact us if you'd like to contribute.
Expat Health Insurance
Cigna Global
If you’re thinking about taking out private health insurance, our trusted partner Cigna Global is very aware of all the difficulties that expats can face when it comes to healthcare in a new location, so they have created a range of international health insurance plans specifically designed for expats, which you can tailor exactly to the needs and ensure access to quality care for you and your family.
Moving Companies
Moving Internationally?
Sirelo has a network of more than 500 international removal companies that can move your furniture and possessions to your new home. By filling in a form, you’ll get up to 5 quotes from recommended movers. This service is free of charge and will help you select an international moving company that suits your needs and budget.