Cost of Living in Lagos: Monthly Budget and Everyday Expenses

Lagos is a metropolis of sharp contrasts, where the cost of living depends heavily on your neighborhood and lifestyle.

Main Expense Categories

Food: Local markets (Mile 12, Balogun) offer very affordable fresh produce. Imported-goods supermarkets (Shoprite, Spar) charge international-level prices.
Energy & Fuel: Diesel or petrol for a generator, or monthly solar installment payments, make up a significant share of the budget.
Transport: Ride-hailing (Uber/Bolt) is widely affordable; fuel for private cars is price-regulated.

Typical Monthly Budgets by Profile

Single, modest living (Mainland): roughly NGN 250,000–400,000/month, covering a studio in Yaba or Surulere, danfo/BRT transport, mostly local meals (buka food), plus NEPA electricity bills and inverter top-ups.
Single, mid-range standard: NGN 600,000–1,000,000/month, with a furnished flat in a secured residence, regular ride-hailing use, and occasional dining out in Lekki or Ikeja.
Expat family, high standard (Island): NGN 2,000,000+/month, including rent in Victoria Island/Ikoyi/Lekki Phase 1, international school fees, a generator or hybrid solar system, domestic staff, and estate security dues.

Commonly Underestimated Costs

Energy costs are frequently underestimated by newcomers: between the EKEDC/IKEDC utility bill, generator fuel, and solar system maintenance, this category can reach 15–25% of a mid-range household's monthly budget. Annual building service charges, often billed separately from rent, add a further significant cost that can reach up to 20% of base rent in secured Lekki or Ikoyi residences. Finally, international school fees and private healthcare (consultations, insurance) weigh heavily on the budgets of families settled in Lagos, since the city concentrates most of Nigeria's high-end offering in both sectors.

An Expensive City Nationally, Volatile Internationally

On a strictly national level, Lagos remains by far Nigeria's most expensive city, driven by high rents, significant transport costs, and elevated prices for imported goods, clearly ahead of Abuja and the country's other major urban centers. Internationally, however, Mercer's cost-of-living ranking for expatriates saw Lagos fall sharply between 2023 and 2024, mainly due to the naira's devaluation, even as local inflation exceeded 20% over the same period. This paradox stems from the fact that the Mercer ranking is calculated in hard currency: a weaker naira mechanically lowers the cost of living as perceived from abroad, even though prices in local currency keep rising for residents.

Inflation That Remains Volatile

Nigerian inflation has followed a pronounced trajectory in recent years, peaking at 34.8% in December 2024 before easing to around 15.15% by December 2025, a level that remains high by international standards and continues to weigh on Lagos households' budgets, particularly for food and energy. This volatility makes it especially useful for newcomers to regularly review their monthly budget, since local prices can shift significantly from one year to the next independent of exchange-rate movements.