Nigeria’s Lagos (225th) and Abuja (226th) tumbled to bottom of a new global list of the world’s most expensive cities for expatriates due to currency fluctuations.

Between 2023 and 2024, the most significant decreases in cost of living rankings were seen in cities in Africa (Lagos, Luanda and Abuja), South America (Santiago) and Eastern Asia (Osaka), according to Mercer’s 2024 Cost of Living report.

Currency devaluations have been a significant driver of these decreases. There have also been some reductions in the cost of high-end housing (e.g., in Santiago). The currency-induced falls in the cost of living for international assignees have happened even though inflation in many of these countries has risen.

For example, between March 2023 and March 2024, the inflation rate increased to more than 20% for both Nigeria and Angola.

Regional finance hubs Hong Kong and Singapore topped the table for most expensive cities, keeping Swiss destinations from the top spots for the second year in a row.

High rental costs saw the rival cities beat Zurich, Geneva, Basel and Bern to the top of the table.

Mercer’s ranking methodology encompassed 226 cities across five continents. It assessed the comparative costs of over 200 items in each location — from housing and transportation to food, clothing, household goods and entertainment.

To ensure consistency in city-ranking comparisons, New York City was utilized as the base city and currency movements were measured against the US dollar.

What this means for businesses


The cost-of-living crisis has already had a significant impact on the mobile talent employed by multinational organizations. High living costs have required some assignees to adjust their lifestyles and cut back on discretionary spending. Some employees have even struggled to meet their basic needs.

For businesses, this has made it more difficult to attract and retain top talent. It has also increased the costs of compensation and benefits, limited talent mobility options, and raised general operational costs.

It is therefore important for organizations to stay informed about the cost-of-living trends and inflation rates in the different locations in which they operate. They should also work to understand how price changes are affecting their employees. If they do not, they may not be able to effectively manage the impact of these challenges on their global talent.

Organizations should explore innovative solutions to address these issues — to ensure the well-being and satisfaction of their employees. Options include offering competitive compensation packages, providing support services and exploring alternative talent-sourcing strategies.

As there are multiple issues to contend with, any solutions should be tailored to meet the specific needs of the businesses, places and people involved. One effective approach is to seek input from employees and to engage in open communication — this can help address concerns and find solutions that work for both an organization and its employees.

https://moneycentral.com.ng/exclusive/article/lagos-abuja-ranked-worlds-least-expensive-cities-for-expats-in-2024/

That's for experts with extravagant lifestlye. Many of these guys throw money on irrelevant things like it means nothing

Because there is no much fascinating things or place to spend their money on





The indegines who are supposed to spend on or revamp these fascinating places have been made impoverished by the govt ; take Landmark for example





So they just come here to make their money and repatriate everything back.

It's because of the exchange rate. Coming to Lagos with $1000 can do a lot compared to 2014