Lagos and Abuja Becomes Most Affordable cities for Expats because of Naira Depreciation.

A recent report reveals that Lagos and Abuja have emerged as the most affordable cities for expatriates worldwide, driven by the significant depreciation of the Naira. The findings were published in the latest Cost of Living survey by Mercer, a leading global consultancy firm.

The survey evaluates the cost of living for expatriates in over 200 cities globally, taking into account various factors such as housing, transportation, food, clothing, and entertainment. This year, Lagos and Abuja have seen a marked decline in their rankings, becoming the least expensive cities for foreign nationals.

Nigeria’s economic challenges have played a critical role in this shift. The Naira has experienced a sharp decline against major international currencies, influenced by factors including reduced oil revenues, inflation, and economic instability. The currency’s depreciation has significantly lowered the cost of living for those earning in foreign currencies, making everyday expenses in cities like Lagos and Abuja far more affordable compared to other global urban centers.

The report indicates that while this is beneficial for expatriates, the situation poses significant challenges for local residents who face rising costs of imported goods and economic uncertainty. The disparity between local incomes and the cost of living continues to widen, exacerbating socio-economic inequalities.

Experts suggest that while the affordability may attract more expatriates, it is imperative for the Nigerian government to address the underlying economic issues. Measures to stabilize the currency and improve local economic conditions are crucial for sustainable growth. Without such efforts, the current scenario might offer only temporary relief for expatriates but long-term challenges for the local population.

Overall, the report underscores the complex dynamics at play, highlighting the dual impact of currency depreciation on different segments of the population and prompting a closer look at economic policies and their broader implications