Lagos Emerges 2nd Cheapest City to Live in Africa – See 2024 Ranking

Lagos, Nigeria’s bustling metropolis, has been named the second cheapest city to live in Africa, according to the 2024 Cost of Living Index. This ranking, provided by Mercer, highlights the varying economic landscapes across the continent and offers valuable insights for expats considering relocation.

The annual Cost of Living City Ranking is an important tool for global mobility operations and international assignees, shedding light on living expenses in cities worldwide.

In 2024, Lagos’ affordability has become a significant talking point, especially considering its reputation as a vibrant but expensive city within Nigeria.

Insights from the 2024 Cost of Living Index

The 2024 ranking revealed a diverse range of economic conditions across African cities. Lagos, alongside Abuja, emerged as one of the least expensive cities for expats. This trend is largely driven by currency depreciations, which have lowered the cost of living for international residents.

The global economic landscape has seen numerous influencers impacting the cost of living in major cities. Inflation, exchange-rate fluctuations, and geopolitical volatility are key factors that have directly affected the expenses of internationally mobile employees. 

These include housing, utilities, local taxes, and education costs. In contrast, cities like Hong Kong, Singapore, and Zurich face high living costs due to expensive housing markets and high transportation costs.

Lagos’ Position in the Ranking

Lagos, Nigeria, ranked 225th globally, has become one of the most affordable cities due to the lower costs of basic goods and services driven by currency depreciation. Despite being Nigeria’s economic hub, the city offers a lower cost of living, making it an attractive destination for expats looking to balance quality of life with financial stability.

Other Notable African Cities

1. Johannesburg, South Africa

• Global rank for cost of living: 206
• Johannesburg combines economic opportunities with a relatively low cost of living, particularly in housing and basic services, making it a top choice for expats in South Africa. The city dropped to 206th place compared to its 205th place in 2023.

2. Cape Town, South Africa

• Global rank for cost of living: 209
• Cape Town, while being a major tourist destination, offers reasonable living costs for expats, especially in housing and utilities. Unlike Johannesburg, Cape Town climbed up to 209th from 208th in 2023.

3. Tunis, Tunisia

• Global rank for cost of living: 210
• Tunis offers a blend of cultural richness and affordability, with low costs of housing, food, and transportation for expats. The city moved up nine places to rank 210th in 2024 compared to last year.

4. Lusaka, Zambia

• Global rank for cost of living: 213
• Lusaka is known for its low living costs, particularly in housing and transportation, making it an appealing city for expats seeking affordability. Lusaka dropped 16 places from last year’s ranking to 213th in 2024.

5. Gaborone, Botswana

• Global rank for cost of living: 215
• Gaborone presents a cost-effective living environment for expats, with affordable housing and lower costs for daily essentials. The city moved up in the cost-of-living ranking by one place since 2023.

6. Windhoek, Namibia

• Global rank for cost of living: 218
• Windhoek’s affordability is driven by moderate housing costs and relatively low prices for goods and services, making it an attractive destination for cost-conscious expats. The city climbed up four places compared to last year.

7. Durban, South Africa

• Global rank for cost of living: 219
• Durban offers a lower cost of living compared to other South African cities like Johannesburg and Cape Town, especially in terms of housing and groceries. Durban was ranked 220th on the global list for cost of living in 2023.

8. Blantyre, Malawi

• Global rank for cost of living: 221
• Blantyre is known for its low cost of living, especially in terms of housing and everyday expenses, making it a viable option for expats looking to live comfortably on a budget. The city dropped 23 places to rank among the cheapest cities in the world for expats.

9. Lagos, Nigeria

• Global rank for cost of living: 225
• Despite being one of Nigeria’s bustling metropolises, Lagos ranks as one of the cheapest cities due to the lower costs of basic goods and services driven by currency depreciation. Lagos dropped 178 places as a result of the currency depreciation.

10. Abuja, Nigeria

• Global rank for cost of living: 226
• Abuja dropped 86 places due to currency depreciation. Nigeria’s capital city offers an affordable cost of living for expats, particularly in housing and utilities, which have seen lower cost increases compared to other major cities.