The commercial capital of Nigeria and the fifth largest economy- Lagos, has been rated one of the cheapest cities to live in the world.
Why low income is not a problem in Lagos, Nigeria
The relative cost of living in Lagos has more than halved since 2008, which might signal renewed interest from foreign investors, with price levels so low by international standards.
In a report by the Economic Intelligence Unit of the Economist, Lagos was ranked the second city with the lowest cost of living in the world. The report noted that the cost of living in the city has been halved since 2008, occasioned by political and economic disruption in the country.
According to the Economist, the report is a purpose-built interest tool designed to help human resources and finance managers calculate cost of living allowances and construct compensation packages for foreign business associates and expatriates.
For the 2017 edition of the report, Lagos fell 16 places to 132nd place to join Almaty, Kazakhstan at the bottom of the ranking.
“Although Nigeria has been attracting significant interest and investment in recent years, the fall in global oil prices has driven a collapse in the value of the Nigerian naira, which pushed down relative pricing, despite strong local inflation.
“The relative cost of living in Lagos has more than halved since 2008, which might signal renewed interest from foreign investors, with price levels so low by international standards,” the report noted.
LAGOS: CHEAP BUT NOT ALWAYS CHEERFUL
As noted in the report, Lagos being a cheap city to live do not mean all is cheerful. Housing in the city is relatively cheap, but mostly of poor standard.
Also, there is structural societal and economic instability that are increasingly prominent factors that play prominent roles in lowering the relative cost of living in Lagos.
“There are well-documented economic, political, security and infrastructural challenges, and there is some correlation between The Economist Intelligence Unit’s cost of living ranking and its sister ranking, the liveability survey. Put simply, cheaper cities tend also to be less liveable”
The city is notoriously noted for high traffic congestion occasioned by poor road networks and poor rating its liveability ranking, as major infrastructural facilities such as portable water and standard shelter, are scared and expensive.
Though the cost of living is always changing, but the government must ensure concerted efforts towards delivering on the infrastructural facilities and social amenities that would complement that low cost of living in the state.
Lagos should not only be a cheap, but habitable (liveable) city.
JOIN OUR PULSE COMMUNITY!
Eyewitness? Submit your stories now via social or: