The Cost of Living in Lagos: How to Manage Your Finances

 

Lagos is a city of dreams—fast-paced, vibrant, and full of opportunities. But let’s be real: living here can also drain your wallet faster than Lagos traffic drains your fuel. From skyrocketing rent to surprise "Lagos prices" at the market, managing finances in this city is a survival skill.

The good news? You can live comfortably in Lagos without breaking the bank. Whether you’re a fresh graduate, a young professional, or a hustling entrepreneur, this guide will help you navigate Lagos’s high costs and keep your finances in check.

1. Understanding the Cost of Living in Lagos (2024 Breakdown)

Before we talk solutions, let’s break down the major expenses:

🏠 Housing & Rent

• Mainland (e.g., Yaba, Surulere): N300,000 – N800,000/year for a decent 1-bedroom.

• Island (e.g., Lekki, VI): N800,000 – N3,000,000/year for the same space.
  Pro Tip: Consider shared apartments or "face-me-I-face-you" setups to cut costs.

🍲 Food & Groceries

• Local markets (e.g., Mile 12, Oyingbo): Cheaper than supermarkets.

• Monthly food budget (single person): N30,000 – N70,000 (depending on taste).

🚗 Transportation

• Danfo/Buses: N100 – N500 per trip.

• Ride-hailing (Bolt/Uber): N1,500 – N5,000 for short distances.
  Hack: Use bike-hailing (Okada) for faster, cheaper rides in traffic.

💡 Utilities & Bills

• Electricity (Estimated Monthly): N10,000 – N30,000 (if no prepaid meter).

• Data/Airtime: N5,000 – N15,000 (depending on usage).

2. Smart Budgeting: How to Stretch Your Naira

📌 Track Your Spending

• Use apps like Money Lover or a simple notebook to log daily expenses.

• Identify "money leaks" (e.g., unnecessary Uber rides, impulse buying).

📌 Adopt the 50-30-20 Rule

• 50% – Essentials (rent, food, transport).

• 30% – Wants (outings, gadgets).

• 20% – Savings & Investments.

Example: If you earn N150,000/month:

• Essentials: N75,000

• Wants: N45,000

• Savings: N30,000

📌 Cook at Home (Lagos Restaurants Will Drain You!)

• A plate of food at a "mama put" costs N800 – N1,500.

• Cooking at home? You’ll spend less and eat healthier.

3. Side Hustles to Boost Your Income

Lagos is expensive, but it’s also full of money-making opportunities. Try:

• Freelancing (Writing, Design, Coding) – Sites like Upwork & Fiverr pay in dollars.

• Ride-Hailing (Bike or Car) – Bolt, Uber, or inDrive can bring extra cash.

• Selling Online – Jumia, Instagram, WhatsApp for quick sales.

Real Story: Ada, a banker, started baking cakes on weekends. Now, she makes an extra N100k/month!

4. Avoiding Common Lagos Money Traps

🚫 Impulse Buying at Markets

• Sellers hike prices when they sense "corper" or "Island vibes."

• Fix: Bargain hard or go with a Lagos "aunty" who knows prices.

🚫 Unnecessary Subscriptions

• Netflix (N3,600), Spotify (N900), Showmax (N2,900) add up.

• Fix: Pick one and share accounts with friends.

🚫 Owning a Car (Unless Absolutely Necessary)

• Fuel + maintenance + Lagos traffic = financial stress.

• Fix: Use public transport or carpool.

5. Saving & Investing for the Future

💰 Emergency Fund First

• Save at least 3–6 months’ worth of expenses.

• Start small (N5,000/month) and grow it.

💰 Low-Risk Investments

• Fixed Deposits (Banks): ~10% annual interest.

• Treasury Bills: Safer than stocks.

• Cooperative Societies: Save & borrow at low rates.

Yes, Lagos is expensive, but with the right strategies, you can live well and save money. Track your spending, cut unnecessary costs, and find ways to earn extra.

How do you survive Lagos on a budget? Share your best money-saving hacks in the comments—let’s learn from each other!