Nigeria still has the second lowest cost of living in the world even with its Economic challenges

 

Nigerians in a busy Market 

According to a recent report released by Business Insider Africa, Nigeria is now ranked the second country in the world with the lowest cost of living and the number one in Africa despite its economic downturn. 

This may come as a surprise to many Nigerians who are of the notion that they probably have the worst cost living in a world facing economic upheaval.

Nigeria faces a 28.92% inflation rate, but Numbeo ranks it as having Africa’s lowest cost of living index.

This presents an economic anomaly.

Nigeria’s current cost of living index stands at 19.0.

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.

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.

While many Nigerians will dispute the above statistical reference it is important to note that; firms that did such research have being doing this for years; and as the saying goes, numbers don't lie.