In the complicated realm of global economics, Nigeria in 2024 has emerged as a fascinating paradox. The West African nation boasts the lowest cost of living index in Africa and the second lowest in the world. This is according to Numbeo, a data platform that provides insights into consumer prices, real property prices, and quality of life metrics.
According to Numbeo’s updated cost of living index for 2024, Nigeria has Africa’s lowest cost of living and the world’s second lowest cost of living, second only to Pakistan, despite the country’s startling rate of inflation and weakening currency.
Nigeria’s inflation which is currently at an alarming 28.92%, an 18-year high, and a 13-month consistent surge, has seemingly done little to raise its cost of living index to a global high.
Inflation is typically associated with a greater cost of living. However, Nigeria’s reality calls into question this logic. The cost of living index, which takes into account factors such as housing, transportation, food, and healthcare, still places Nigeria as one of the countries with the lowest cost of living, presenting an interesting case study.
To collect data, Numbeo relies on user inputs and manually collected data from authoritative sources (websites of supermarkets, taxi company websites, governmental institutions, newspaper articles, other surveys, etc.). Manually collected data from established sources are entered twice per year.
With that said, Nigeria’s current cost of living index stands at 19.0. When compared to the highest, Bermuda there is a 114.8 disparity, as Bermuda has a cost of living index of 133.8.
Also when compared to Mozambique, which has the highest cost of living in Africa at 45.2, there is a 26.2 points difference.
Nigeria’s relatively low cost of living is despite the fact that the country’s latest food inflation rate accelerated to 33.93% on a year-on-year basis, marking a 10.18% increase compared to the rate recorded in December 2022 (23.75%).
According to a report by Business Day, a prominent news publication in Nigeria, “100% of respondents who participated in the publication’s poll are dissatisfied with the current cost of food, and 75% believe the government isn’t doing enough to address the issue.
A recent report also shows that commodity prices in Nigeria are set to surge again, following the fall of the country’s currency to N1,420/$.
While Nigerians are generally frustrated with the current state of affairs in the country, Numbeo’s list shows that its living conditions are very cheap compared to the rest of the world.
