Cost of Living in Lagos, Nigeria 2025: Complete Budget Guide from ₦5M-₦60M Annually

If you’re planning to move to Lagos or already live here and want to budget smarter, you’re asking the right question: How much does it really cost to live in Lagos, Nigeria in 2025? Here’s the reality—you’ll need anywhere from ₦5 million to ₦60 million annually (roughly $3,300 to $40,000 at December 2025 exchange rates), depending heavily on whether you’re surviving or thriving.

Lagos is Nigeria’s most expensive city—no debate there. But it’s also where the best job opportunities, infrastructure, and networking happen. So the real question isn’t whether Lagos is expensive (it absolutely is), but whether you can afford to live here given your income and goals. Planning to move to Lagos? Declutter before your move to reduce moving costs and avoid bringing unnecessary items to your expensive Lagos apartment.

As of December 2025, the cost of living in Lagos has continued climbing:

• Annual rents in popular areas like Victoria Island now start at ₦10-15 million.
• Food prices hover around ₦1,500 to the dollar due to inflation.
• Basic amenities like transportation and electricity cost significantly more than last year.

This guide breaks down every expense category—from rent and food to school fees and entertainment—using verified December 2025 figures. Whether you’re earning ₦200,000 or ₦2 million monthly, you’ll find realistic budget scenarios that match your situation.

Understanding Lagos’s Cost Structure in 2025

Realistically speaking, Lagos operates on two different economies: the “Mainland economy” and the “Island economy.” The cost gap between these two areas is massive. Global monitors like the IMF confirm that broader economic shifts are affecting purchasing power across the region.

Here is what defines the cost structure:

• Housing Demand: Incredibly high demand drives prices up, often requiring 1-2 years of rent upfront.
• Infrastructure Costs: You pay extra for private security, water treatment, and electricity generation (generators/solar).
• Currency Impact: With the naira volatility in 2025, imported goods (groceries, cars) have spiked in price. According to the National Bureau of Statistics, inflation remains a key driver of these rising costs.

Key Takeaway: The World Bank reports that poor households spend up to 70% of their income on food, making food inflation Nigeria’s biggest household expense. Compared to cities like Ibadan or Enugu, Lagos costs roughly 40-60% more.

How Much Does It Cost to Live in Lagos, Nigeria? (Quick Overview)

To give you a clear picture, here is a summary of what you might spend based on four different lifestyle levels.

Note: These figures are estimates based on December 2025 pricing; your actual costs may vary based on family size and specific choices.

Lifestyle Level	Monthly Budget	Annual Budget	Who It’s For
Survival/Basic	₦400K – ₦800K	₦5M – ₦10M	Single person, shared flat/room (Mainland), public transport, local markets.
Moderate	₦1.2M – ₦2M	₦15M – ₦24M	Small family or single pro, decent 2-bed (Surulere/Ikeja), occasional Uber, mixed shopping.
Comfortable	₦2.5M – ₦4M	₦30M – ₦50M	Family of 4, standard 3-bed (Lekki/VI), personal car, private schools, generator use.
Luxury	₦5M+	₦60M+	Expat-level, premium locations (Ikoyi), international schools, full-time staff, 24/7 power.

The truth is, these figures include rent, which is typically paid annually in Lagos. You’ll need to amortize that cost mentally to understand your monthly cash flow.

Housing & Rent Costs: ₦400K-₦25M Annually (40-60% of Budget)

Housing typically eats 40-60% of your budget in Lagos. Unlike many countries where you pay monthly, most Lagos landlords demand 1 to 2 years of rent upfront. You must have this bulk cash ready before you move.

How Much is Rent in Different Lagos Areas?

Recent data shows significant hikes. As of December 2025, here is what landlords are asking for:

Lagos Mainland (More Affordable):

• Alimosho / Ikotun / Ikorodu: ₦400,000 – ₦1.2M annually for a decent 2-bedroom flat.
• Yaba / Surulere: These are “tech hubs” and middle-class favorites. Expect to pay ₦1.5M – ₦2.5M annually for a 2-bedroom apartment.
• Ikeja (Capital): For a 2-bedroom flat in a secure estate, budget ₦2M – ₦3.5M annually.

Lagos Island (Premium):

• Lekki Phase 1: A standard 2-3 bedroom apartment now ranges from ₦8M – ₦12M annually.
• Victoria Island (VI): Expect to pay ₦10M – ₦15M annually for a 2-3 bedroom flat.
• Ikoyi: This is the peak of luxury. Family-sized apartments often range from ₦15M to ₦25M+ annually.

Once you’ve secured affordable rent, maximizing your small space becomes crucial. Learn how to make the most of your one-bedroom apartment in Nigeria with smart design choices that don’t break the bank.

Quick Tip: Always verify the “Service Charge” before signing. In high-end estates, this fee covers security, water, and power but can add an extra ₦500k-₦3M to your annual bill.

What is the Cheapest Place to Live in Lagos?

If you’re looking to save money, the most affordable Lagos neighborhoods with decent access to the city are Ikorodu, Epe, and parts of Badagry.

• Ikorodu: You can still find a decent 2-bedroom flat for ₦350,000 – ₦800,000 annually. If you’re starting with a modest one-room apartment to save money, these decoration tips for small Nigerian spaces can make your home feel comfortable without expensive furniture.
• The Trade-off: You’ll save 60-70% on rent, but you might spend 2-3 hours in traffic daily.
• Middle-ground options: Areas like Ojodu and Berger offer a balance—rents are moderate (₦800k – ₦1.5M), and they are right on the exit to the Lagos-Ibadan expressway.

With remote work becoming common, many Lagos residents need workspace in small apartments. Learn how to set up a functional home office in your bedroom without sacrificing living space.

Food & Groceries Budget – What You’ll Actually Spend: ₦80K-₦600K Monthly

Food inflation has hit Lagos hard. In practical terms, expect to spend ₦300,000 to ₦2 million monthly on food for a family, depending on your shopping habits. Official NBS Inflation Reports highlight how food price indices vary significantly between markets and supermarkets.

Local vs. International Food Shopping

• Local Markets (Mile 12, Oyingbo):
  • 50kg bag of rice: ₦110,000 – ₦120,000.
  • Basket of tomatoes: Can spike to ₦18,000+.
  • Family of 4 budget: ₦150,000 – ₦250,000 monthly.
• Supermarkets (Spar, Shoprite):
  • Weekly shop for a family: ₦80,000 – ₦150,000.
  • Family of 4 budget: ₦320,000 – ₦600,000 monthly.

Single Person vs. Family Food Costs

• Single person (Frugal): Cooking at home mostly, buying local: ₦80,000 – ₦120,000 monthly.
• Single person (Social): Eating out/ordering apps: ₦200,000 – ₦400,000 monthly. Data from Numbeo confirms that a basic restaurant meal in Lagos can range widely, often costing ₦3,000-₦5,000 for inexpensive options.
• Family of 4: Mix of home cooking and occasional treats: ₦300,000 – ₦600,000 monthly.

Quick Tip: “Mama Put” (local canteens) are significantly cheaper than fast-food chains like Chicken Republic or Mega Chicken. A good meal might cost ₦1,500 vs ₦4,500.

To stretch your food budget further while maintaining nutrition, follow a strategic meal prep schedule designed for Nigerian 9-5 workers—cook once, eat all week, and save ₦80,000-₦120,000 monthly.

Transportation Costs in Lagos: ₦30K-₦300K Monthly

Lagos traffic is legendary, and it costs money to navigate. Your budget depends entirely on how you move. Lagos traffic is notorious for draining mental energy. While stuck in transit, curate a morning playlist that improves your mood and makes the commute more bearable.

Public Transportation

• Danfo (Yellow Buses): Typical drop is ₦300 – ₦500. Monthly budget: ₦30,000 – ₦50,000.
• BRT (Bus Rapid Transit): Safer and uses dedicated lanes. Monthly budget: ₦40,000 – ₦60,000.
• Ride-hailing (Uber/Bolt): Mainland to Island trip is ₦6,000 – ₦10,000 one way. Monthly budget: ₦150,000 – ₦300,000.

Owning a Car in Lagos

• Fuel (PMS): ₦900 – ₦1,050 per liter. Filling a tank costs ₦50,000+. Monthly budget: ₦100,000 – ₦200,000.
• Maintenance: Roads are rough on suspension. Monthly average: ₦30,000 – ₦50,000.
• Total: Car owners should set aside ₦150,000 – ₦300,000+ monthly.

Utilities: ₦30K-₦300K Monthly (Grid + Gen)

This is the “silent killer” of budgets. You must pay for both the grid (NEPA/DISCO) and your own generator.

• Electricity (Grid): Band A customers (20+ hours) pay ₦200 – ₦225/kWh (approx). Expect ₦30,000 – ₦80,000 monthly. To reduce your electricity bill during Lagos’s hot months, discover practical ways to cool down your house without air conditioning—these methods can cut your power costs by 30-40%.
• Generator Costs: Running a small petrol generator for 6 hours/day costs ₦150,000+ monthly in fuel. If you’re investing in a generator for your home, proper generator room organization ensures safety, efficiency, and easier maintenance—potentially saving you money on repairs.
• Internet: Unlimited fiber/wifi (Starlink, ipNX) costs ₦30,000 – ₦80,000 monthly. For remote workers, investing in a reliable power bank for your laptop can reduce generator dependency and cut fuel costs while ensuring productivity during outages.
• Cooking Gas: A 12.5kg cylinder costs ₦14,000 – ₦18,000.

Key Takeaway: If you can afford the upfront cost (₦1M+), a solar inverter system pays for itself in about 18 months by eliminating daily fuel costs.

School Fees: ₦10K-₦24M+ Annually

For parents, this is usually the second largest annual expense after rent.

• Public Schools: Almost free (₦10,000 – ₦30,000 annually), but often avoided by middle class.
• Low-tier Private: Neighborhood schools charge ₦100,000 – ₦300,000 per term.
• Mid-tier: Decent facilities charge ₦300,000 – ₦800,000 per term.
• Top Nigerian Schools: Schools like Chrisland or Greensprings charge ₦1.5M – ₦3M+ per session.
• International Schools: British/American curriculums (Charterhouse, AISL) charge ₦10M – ₦24M+ annually. Even the Lagos Free Zone notes that international schools can charge fees ranging from ₦5 million to ₦10 million+ depending on the grade level.

Domestic Staff & Security: ₦50K-₦150K+ Monthly

• House help/Cleaner: ₦50,000 – ₦80,000 monthly.
• Driver: ₦80,000 – ₦150,000 monthly.
• Security/Gate fee: ₦40,000 – ₦150,000 monthly (usually part of service charge in estates).

Healthcare: ₦20K-₦600K (Out-of-Pocket vs HMO)

• Health Insurance (HMO): A family plan costs ₦300,000 – ₦600,000 annually.
• Out of Pocket:
  • Consultation (Private Hospital): ₦20,000 – ₦50,000.
  • Malaria Treatment: ₦20,000 – ₦40,000 per episode.

Entertainment: ₦50K-₦1M+ Monthly

Entertainment doesn’t have to drain your budget. Explore stress-free weekend activities that cost little to nothing while helping you recharge from Lagos’s hustle.

• Cinema: ₦6,000 – ₦10,000 per ticket.
• Gym: ₦25,000 (Mainland) to ₦100,000 (Island) monthly.
• Dining Out: Date night at a nice restaurant costs ₦70,000 – ₦150,000.
• Photography: Photography is a free hobby that lets you explore Lagos. Check out these budget-friendly Lagos photography locations for weekend outings that cost nothing but transport.

Salary Context: ₦70K Minimum Wage vs Reality

Knowing the costs is one thing, but can you afford it? If you feel your current salary doesn’t match Lagos’s cost of living, building career confidence can help you negotiate better pay or position yourself for higher-earning opportunities.

• Minimum Wage: Officially ₦70,000 (National), ₦85,000 (Lagos State).
• Level 7 Civil Servant: Earns approx ₦100,000 – ₦120,000 monthly.
• Teachers: Range from ₦40k (small private) to ₦1M+ (International).
• Private Sector (Banking/Tech): Entry level ₦250k – ₦600k, Mid-level ₦800k – ₦2M.

Key Takeaway: The minimum wage covers barely one week of comfortable living expenses. Many Lagos residents supplement their salaries with side businesses. If you’re considering this path, learn how to balance your 9-5 job with your side hustle to increase your monthly income without burning out.

Money-Saving Tips for Living in Lagos on a Budget

1. Live on the Mainland: You get more space for less money.
2. Carpool or Use Staff Bus: Transport eats income.
3. Shop in Markets, Not Malls: Mile 12 or Oyingbo is 30% cheaper.
4. Inverter over Generator: Save on daily fuel costs.
5. Cook at Home: Restaurant markup is high.

Comparison with Other Nigerian Cities

City	Monthly Cost (Single)	Monthly Cost (Family)	Key Difference
Lagos	₦400K – ₦800K	₦1.5M – ₦3M	Most expensive, best jobs.
Abuja	₦350K – ₦700K	₦1.2M – ₦2.5M	High rents, cheaper transport.
Port Harcourt	₦300K – ₦600K	₦1M – ₦2M	Expensive due to oil industry.
Ibadan	₦200K – ₦400K	₦600K – ₦1.5M	The Savings King. 40-50% cheaper.

Real-Life Budget Example: Meet Chioma

Chioma is a 28-year-old marketing executive living in Yaba. Here’s her actual monthly budget:

• Rent: ₦2M/year = ₦167,000/month
• Food: ₦120,000 (mixes market shopping with occasional Shoprite)
• Transport: ₦80,000 (Uber/Bolt to work + weekend outings)
• Utilities: ₦85,000 (electricity ₦40k, internet ₦25k, airtime ₦20k)
• Entertainment: ₦50,000
• Savings: ₦200,000
• Total Monthly: ₦702,000

Chioma earns ₦850,000 monthly. By living in Yaba instead of VI, she saves ₦500,000+ annually on rent while still maintaining a comfortable lifestyle with savings.

Conclusion

So, how much does it really cost to live in Lagos, Nigeria in 2025?

• Single Person: Target ₦1.5M – ₦2M annually for survival, or ₦6M+ annually for comfort.
• Family: Target ₦15M to ₦60M+ depending on taste and location.

Action Plan: Start with a budget that fits your current reality. Don’t try to “do pass yourself.” Live in a cheaper area like Ikorodu or the Mainland initially, grow your income, and then upgrade to Lekki or Ikeja GRA when your cash flow allows. Now that you understand Lagos’s costs, set concrete financial goals for 2026 using the SMART framework to track your progress toward comfortable living.

A recent World Bank analysis suggests Nigeria is seeing positive economic momentum, so planning now is key to benefiting from future growth. Living in Lagos can be financially and emotionally draining. Discover quick stress-relief techniques you can practice at home to maintain your mental health while managing tight budgets.

Use this guide to negotiate your salary or plan your relocation. Lagos is tough, but with the right financial plan, you can definitely thrive.