Cost of Living in Nigeria

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It’s crucial to understand the complex nature of the cost of living in Nigeria. With inflation and currency shifts, locals may struggle to make ends meet, while expats who earn in a foreign currency such as the US dollar will be able to live a much more comfortable lifestyle.

Lagos is the most expensive place to live in Nigeria, while living in rural areas or smaller cities within Nigeria can offer a more budget-friendly lifestyle. Most expats still choose to settle in Lagos or Abuja as these cities remain hubs of business and international activity, even as living costs fluctuate.

Cost of accommodation in Nigeria

The cost of accommodation in Nigeria is high, particularly in Lagos and Abuja. If you're moving with a company, they may cover the cost of housing, especially if they place you in an expat enclave. These enclaves offer well-furnished homes with all the comforts of modern living, but if you're securing housing independently, prepare to pay several months' rent upfront.

Demand for housing, driven by urban migration and inflation, has tightened the rental market. Many expats are looking for homes that support remote work, pushing the trend toward larger, more equipped apartments or houses. If you don't have corporate backing, consider shared accommodations or private rentals using local listing platforms. These can provide more flexibility and potentially lower costs.

Security and reliable power are concerns you'll need to address when choosing a place to live. Crime rates and the often unreliable electricity supply mean that additional costs for security and backup power (like generators) are common.

Generators

Generators are an essential investment in Nigeria. The power supply is inconsistent and can be cut off for long stretches. A generator provides backup electricity but can significantly drain your wallet. The cost of buying, installing, and maintaining one adds up quickly. You’ll also need to keep it fuelled and serviced to ensure it runs safely.

While there have been some improvements in the national power grid, reliance on generators remains the norm for most residents and businesses, especially in urban areas. Be prepared for this when budgeting for your move.

Cost of transport in Nigeria

Getting around in Nigeria, like accommodation, can carry unexpected costs. Most expats opt to hire a driver due to the chaotic traffic and poorly maintained roads, particularly in major cities like Lagos. The cost of hiring a driver varies, but expat employers typically subsidise it. On top of that, you’ll need to account for car payments, petrol, and insurance.

Public transport is not recommended for most expats. The buses and okadas (motorbike taxis) are often in poor condition and can be unsafe. Although there have been government initiatives to improve public transport in major cities, the safety and reliability of these systems still lag behind what many expats are accustomed to.

Cost of groceries in Nigeria

Groceries in Nigeria can be a mixed bag. You’ll find that locally sourced food is generally quite affordable, especially if you shop at local markets. These vibrant markets offer fresh produce and exotic fruits, typically at prices lower than what you'd pay back home.

However, imported goods can be costly. Inflation has made this divide even more noticeable. Due to shortages and currency fluctuations, basic staples like rice and maize have seen steep price increases.

You might find groceries significantly pricier in more affluent neighbourhoods or urban centres than in rural areas. Be mindful of the fluctuations in food prices and consider sourcing local products to help manage your grocery budget.

Cost of entertainment and eating out in Nigeria

Going out for a meal or catching a movie in Nigeria offers a range of price points, but inflation has driven costs up across the board. A simple dinner for two in a local spot remains affordable, while mid-range restaurants will charge more, especially for multi-course meals. Cinemas offer a reasonably priced option for entertainment, falling somewhere between the costs of eating out.

There are also plenty of new dining options popping up, catering to expats and locals alike, so you’ll find a mix of traditional Nigerian dishes and international cuisine. It’s worth exploring the local eateries to get a taste of the diverse food culture without breaking the bank.

Fitness enthusiasts may find gym memberships on the higher side, but they’re still manageable. Clothing and footwear from well-known brands are surprisingly inexpensive, especially compared to North America or Western Europe.

Cost of education in Nigeria

For expats moving with children, the cost of education is something you’ll need to factor into your budget. Private international schools in Nigeria can be pricey, with tuition rates varying depending on the school’s reputation and facilities. Many of these schools follow globally recognised curricula, ensuring your child receives a high standard of education, but the cost often reflects the quality.

Remember that tuition fees frequently don’t cover extras like uniforms, textbooks, school trips, or exams, so if possible, negotiate for a school allowance in your employment package.

Cost of healthcare in Nigeria

Healthcare in Nigeria remains a challenge, although improvements are being made, particularly in major cities like Lagos and Abuja. The quality of services varies, but expats typically prefer private clinics and hospitals, where the standard of care is higher. That said, costs can add up quickly, particularly for more specialised treatments or extended hospital stays.

Because of this, many expats opt for private international health insurance, which helps cover medical expenses and sometimes includes expatriation in case of severe medical issues. It’s a smart move to ensure you have comprehensive coverage while living in Nigeria, as out-of-pocket costs for treatments and medications can be steep.

In some areas, the availability of quality healthcare can be limited, so it’s important to plan for any potential medical needs before relocating.