Overview of Nigeria's Cost of Living
Nigeria's cost of living varies significantly between urban and rural areas, with Lagos, Abuja, and Port Harcourt being the most expensive cities. The country's economic landscape is shaped by oil revenues, agricultural production, and a growing services sector, directly impacting purchasing power across different income brackets.
As of 2024, Nigeria faces ongoing inflationary pressures, with the Consumer Price Index showing substantial increases in food and housing costs. The naira's volatility against major currencies has also affected import-dependent goods pricing.
Housing and Accommodation Costs
Rental Market Overview
Housing represents the largest expense for most Nigerian households, typically accounting for 30-50% of monthly income in major cities. The rental market operates on an advance payment system, where tenants often pay 1-2 years rent upfront.
- Lagos (Victoria Island/Ikoyi): ₦2,000,000 - ₦8,000,000 annually for 2-bedroom apartments
- Lagos (Mainland areas): ₦600,000 - ₦2,500,000 annually for 2-bedroom apartments
- Abuja (Central districts): ₦1,500,000 - ₦5,000,000 annually for 2-bedroom apartments
- Port Harcourt: ₦800,000 - ₦3,000,000 annually for 2-bedroom apartments
- Kano/Ibadan: ₦400,000 - ₦1,800,000 annually for 2-bedroom apartments
Utility Costs
Utilities in Nigeria can be unpredictable, with frequent power outages necessitating alternative energy sources:
- Electricity: ₦15,000 - ₦45,000 monthly (including generator fuel costs)
- Water: ₦5,000 - ₦15,000 monthly (borehole or treated water)
- Internet: ₦8,000 - ₦25,000 monthly for broadband
- Waste management: ₦3,000 - ₦8,000 monthly
Transportation Expenses
Public Transportation
Nigeria's public transport system varies by city, with Lagos having the most developed network including BRT buses and rail systems:
- BRT Bus (Lagos): ₦200 - ₦400 per trip
- Commercial buses (danfo): ₦100 - ₦300 per trip
- Motorcycle taxis (okada): ₦100 - ₦500 per trip
- Tricycle (keke): ₦100 - ₦400 per trip
- Lagos Rail Mass Transit: ₦200 - ₦500 per trip
Private Transportation
Vehicle ownership costs include high import duties and fuel expenses:
- Fuel (petrol): ₦617 per liter (official pump price as of 2024)
- Car insurance: ₦15,000 - ₦150,000 annually depending on vehicle value
- Vehicle registration: ₦6,500 - ₦35,000 depending on state and vehicle type
- Used Toyota Corolla (2015): ₦4,000,000 - ₦7,000,000 (to be verified)
Food and Groceries
Local Food Staples
Nigeria's food costs have experienced significant inflation, particularly affecting staple foods:
- Rice (50kg bag): ₦32,000 - ₦45,000
- Beans (paint bucket): ₦8,000 - ₦12,000
- Yam (per tuber): ₦800 - ₦2,500
- Plantain (per hand): ₦500 - ₦1,200
- Tomatoes (per basket): ₦8,000 - ₦15,000 (seasonal variation)
- Chicken (whole): ₦3,500 - ₦6,000
- Beef (1kg): ₦2,500 - ₦4,500
Imported and Processed Foods
- Bread (family loaf): ₦500 - ₦800
- Milk (1 liter): ₦800 - ₦1,200
- Cooking oil (5 liters): ₦4,000 - ₦6,500
- Imported rice (50kg): ₦40,000 - ₦55,000
- Soft drinks (350ml): ₦200 - ₦350
Dining Out
- Local restaurant meal: ₦1,500 - ₦4,000
- Fast food (international chains): ₦3,000 - ₦6,000
- Fine dining: ₦8,000 - ₦20,000 per person
- Street food: ₦300 - ₦1,000
Healthcare and Education Costs
Healthcare Expenses
Healthcare costs vary dramatically between public and private facilities:
- Private hospital consultation: ₦5,000 - ₦15,000
- Public hospital consultation: ₦500 - ₦2,000
- Health insurance (family plan): ₦50,000 - ₦200,000 annually
- Prescription medications: 50-200% higher than international prices
Education Costs
- Private primary school: ₦200,000 - ₦1,500,000 annually
- Private secondary school: ₦300,000 - ₦2,500,000 annually
- Private university: ₦500,000 - ₦3,000,000 annually
- Public university: ₦50,000 - ₦200,000 annually (tuition only)
Purchasing Power Analysis
Income Benchmarks
Understanding purchasing power requires context of typical Nigerian salaries:
- Minimum wage: ₦30,000 monthly (National Minimum Wage Act 2019)
- Entry-level graduate: ₦80,000 - ₦150,000 monthly
- Mid-level professional: ₦200,000 - ₦500,000 monthly
- Senior management: ₦800,000 - ₦2,000,000+ monthly
Cost of Living Index by City
Relative cost comparison with Lagos as baseline (100):
- Lagos: 100 (highest cost)
- Abuja: 85-90
- Port Harcourt: 75-80
- Kano: 60-70
- Ibadan: 65-75
- Enugu: 60-70
Regional Economic Considerations
ECOWAS Impact
As a member of the Economic Community of West African States (ECOWAS), Nigeria benefits from regional trade agreements that affect certain commodity prices and labor mobility, though specific impacts on cost of living require further verification.
Currency and Inflation
The naira's performance significantly impacts purchasing power, particularly for imported goods. Current inflationary trends show food inflation at approximately 28-35% year-on-year (to be verified for exact current figures).
Note: All prices are approximate and subject to frequent changes due to economic volatility. Actual costs may vary significantly based on location, quality, and market conditions. Regular price monitoring is recommended for accurate budgeting.