Cost Of Living For a Family in Lagos 2025

Average monthly spending for families in Lagos

We consider a family to be a member of four members, two adults and two children. This is the most common type of family. From the figures below, it should be fairly easy to calculate the average spending for families of different sizes.

How much money does a family need in a month to survive in Lagos?

Families in Lagos spend around 610,000 NGN per month on average. Depending on the lifestyle, a family can survive with a monthly budget as low as 210,000 NGN or as high as 3.9M NGN. Location and income are very important factors and have a huge influence on expenditure and budget.

Family expenditure to income ratio in Lagos

Analysing the how affordable it is for families to live in Lagos

One of the most definite ways to determine how affordable a place is measuring the ratio of expenses to salary. A high expense-to-income to ratio indicates a high cost-of-living index while a low expenditure-to-salary ratio means the place is affordable to live in. Families usually spend a larger chunk of their income than other population groups. A typical and healthy expenditure percentage for a family of four ranges between 70% to 80%.

Families in Lagos spend around 110% of their monthly income. Some families spend as low as 97% of their income while some as high as 120%.

How do families spend their money in Lagos?

We asked thousands of families about their spending habits and expenditure break down.

Housing and accomodation expenditure for families

Families in Lagos typically spend from 20% to 35% of their total monthly expenditure on housing with 25% being the average. The average monthly spend on housing is 190,000 NGN with expenditure ranging from 68,000 NGN to 1.3M NGN. This cost mainly goes for rent but it also includes other accommodation-related expenses.

Electricity, utilities, energy, water, internet, and mobile expenditure for families

Utility expenditure like electricity, water, and gas in Lagos ranges from 4% to 9% of total expenses with 6% being the average for most families. The average monthly cost of utilities is 30,000 NGN with 11,000 NGN and 200,000 NGN being the upper and lower limits for a family of four.

Transport, fuel, and commute expenditure for families

Fuel consumption and cost of transport depend heavily on whether a family resides near school and work, but roughly speaking a family would expect to spend from 21,000 NGN to 390,000 NGN in a month on commuting with 61,000 NGN being the norm for most families. This means that money spent on transport constitutes about 5% of total spending on average but can go as low as 3% or as high as 7%.

Food, groceries, and basic shopping expenditure for families

The average outlay on groceries and basic houshold items for a typical family in a month in Lagos is 110,000 NGN. The cost of groceries can range between 38,000 NGN to 710,000 NGN. Families spend on average about 21% on food and groceries with upper and lower bounds of 14% and 27% respectively.

Healthcare and medical services expenditure for families

Families in Lagos allocate 7% to 16% of their total monthly expenditure to healthcare including health insurance and out-of-pocket medical expenses. The average spending on medical services and clinic visits is around 11%. The range of medical expenses range from 19,000 NGN to 320,000 NGN with 61,000 NGN being the norm for most families.

Leisure and shopping expenditure for families

This category mostly contains discretionary or non-essential expenses but also some non-discretionary spending like furniture for example. The monthly expenses range from 11,000 NGN to 200,000 NGN with 30,000 NGN being the average. Speaking of percentages, that equates to 1% to 6% of total expenses with an average of 2% for most families.

Education and schooling expenditure for families

Spending on education can vary drastically between different families. On average, education constitutes 13% of the monthly expenditure of families with 6% and 21% being the lower and upper bounds respectively. The average reported education cost is 85,000 NGN per month with 30,000 NGN being the minimum spent amount and 550,000 NGN being the maximum.

What percentage of families in Lagos are able to save money and how much can they save?

Percentage of families that reported their ability to save money

Almost 52% of surveyed families in Lagos said that they can save some money at the end of each month while 48% reported that they have to utilize their whole income to survive.

How much money do families manage to add to their savings?

Saving to Income Ratio

Average Monthly Saved Amount

Savings to income distribution levels for families

Interpretation and Analysis

Families that are able to save money can put anywhere from 9.2% to 30% of their monthly income to their savings, with 16% being the average for most families. The average monthly amount of money that families can put aside is 170,000 NGN with 60,000 NGN and 1.1M NGN being the minimum and maximum respectively.

Saving Challenges in Lagos

Reasons that make it difficult for families to save money

We wanted to understand what is stopping families from maximizing their savings in Lagos. Listed below are the answers given by the survey participants.

Around 5% of the families said that their salary is too low to accommodate a portion for savings while 8% said that the high cost of living leaves little room for savings. 13% of the residents said that they are burdened with debt and find it challenging to save money. 12% reported that they just don't have the knowledge or discipline to create and stick to a budget, leading to overspending and an inability to save. 12% of families blamed impulsive spending as the reason for saving inability. Around 7% said that unexpected expenses like medical bills or car repairs are derailing their savings goals. 5% bluntly said that they don't see the purpose of it and prefer to live each day to the fullest. 21% reported that they understand the value of saving but are putting off saving for the future, thinking they have plenty of time to start later. 13% blamed inflation, saying that every time they save some money they end up using it immediately. A surprising 3% said that social pressure and keeping up with peers or social expectations makes them overspend. Lastly, 2% blamed market instability and price fluctuations.

Typical saving choices for families in Lagos

Where do people choose to put their savings?

A typical and healthy budgeting structure

The 50/30/20 rule

Spending among different people can vary significantly based on factors such as their income, lifestyle, location, and personal preferences. A commonly used guideline for budgeting is the 50/30/20 rule, which suggests allocating your income into three main categories in the following percentages.

• 50% for needs and financial obligations

  This category includes essential expenses like housing, utilities, groceries, transportation, and healthcare.

• 30% for wants and discretionary spending

  This category covers discretionary spending on non-essential items, such as dining out, entertainment, travel, and other lifestyle choices.

• 20% for savings and emergency fund

  This is the percentage that must be allocated to savings, emergency funds, and retirement accounts.

About financial planning, money management, and household budgeting

Affordable living in Lagos

Income and cost of living compatibility

We asked families one simple question and recorded their answers.

Is it affordable or economical to live in Lagos?

Around 48% of surveyed families think that living in Lagos is affordable with proper budgeting while 52% reported that it is just too expensive and not affordable even with frugality and thriftness.

Low-cost alternatives in Lagos

People are always looking for ways to cut down expenses and reduce expenditures. The hallmark of any affordable place is the availability of discount stores, bargain deals, smart or secondhand shopping, refurbished items, and couponing. We asked families how easily cost-cutting is and the answers were distributed as follows:

Plenty of low-cost options60%

Few low-cost options41%

Based on the survey, 60% of the families living in Lagos have no problem finding low-cost alternatives to support a frugal lifestyle while 41% think that thriftness is difficult due to scarcity in discount markets and secondhand outlets.

Emergency Funds For Families

An emergency fund is a financial safety net comprised of easily accessible savings set aside to cover unexpected expenses or financial emergencies, typically amounting to three to six months' worth of living expenses. We asked families of Lagos whether they have an emergency fund and the answers were as follows.

Yes45%

No55%

Based on the survey, 55% of the families living in Lagos said that they don't have an emergency fund while 45% said that they do.

Financial Literacy in Nigeria

Financial literacy is the knowledge of concepts and principles related to personal finance that allow individuals to make informed decisions regarding their money such as budgeting, saving, investing, borrowing, managing debt, financial risk management, and planning.

Financial Leteracy37%

We asked family guardians and parents in Lagos whether they acquired any adequate personal financial training in their lives. Approximately 63% of the people who participated in the survey said that they are not well informed about the topics of budgeting, saving, etc., and just manage things based on their own experience, while 37% said that they know about the general principles of personal finance from sources other than their own experience.

Difficulty in Budgeting and Financial Planning

We wanted to understand whether families of Nigeria have problems or difficulties in managing their expenditures and savings so we asked people one simple question: do you struggle with your personal finances? 62% of the participants reported that they indeed struggle in creating budgets and in organizing their finances while 38% said that they have everything under control.

Struggles with finance62%

Easily manages finances38%

Financial goals of families in Lagos

In an attempt to understand the economic situation in Lagos, we asked participants about their financial targets. By knowing what the population in general is trying to achieve, we can shed light on the economic outlook, cost of living, and quality of life in general.

Around 8% of families said that their main goal is to establish an emergency fund to cover unexpected expenses while 43% said their number one priority is to pay off high-interest debt or loans and improve credit. 10% of surveyed people confirmed that saving for retirement to ensure a comfortable lifestyle in the final years is their main target. Around 7% reported that their priority is saving for the tuition fees and education costs of their children while 18% choose to buy a home or pay off existing mortgage before other things. 6% of the population would like to build wealth through investments such as stocks, bonds, mutual funds, or real estate. For 6% of people, saving for vacations or upgrading their lifestyle is the number one concern. Approximately 14% of the residents said that saving for healthcare expenses including insurance premiums is their main goal.

Debt, loans, and mortgages in Lagos

Percentage of families who are in debt

According to the survey, 39% of the families in Lagos have some kind of debt, loan, mortgage, or credit card payments while 61% reported that they don't have financial obligations to banks.

Debt-to-income ratio in Lagos

Interpretation

The debt-to-income ratio measures the percentage of income being paid as debt settlement across the population. It is calculated by dividing the monthly debt settlement payment of an individual by their monthly income. Based on collected data, approximately 38% of a family's monthly income in Lagos goes to debt settlement.

Debt levels

Monthly debt settlement payment as percentage of monthly income

According to our data, 3% of the debtors in Lagos pay 60%+ of their income as debt settlement while 18% of the people pay 50% to 60% of their income for the same, which is quite an alarming financial situation for those individuals. 15% of people in debt dedicate 40% to 50% of their income to loan and mortgage payments while 17% dedicated 30% to 40% of income for same. Things are looking brighter for 10% of individuals as they only pay 20% to 30% of their income for loan and credit card repayment.

Distribution by type of debt in Lagos

8% of debtors in Lagos confirm that real estate mortgages constitutes the main part of their outstanding debt while 30% say that credit card payments are the reason they are in debt. Auto loans were the main type of debt for 14% of people and personal loans rose at 43%. Lastly, student loans are the main source of debt for 4% of debtors in Lagos.

Good debt vs. Bad debt

Not all debt is bad. Good debt typically refers to borrowing money for investments that can increase in value or generate income over time like purchasing a home or acquiring student loans. On the other hand, bad debt involves borrowing for things that fail to generate lasting value like high-interest credit card debt used for non-essential expenses like luxury items or vacations.

Loan Affordability Index in Lagos

Besides measuring the loan-to-income ratio, we asked families of Lagos how many times in a year they defaulted or were unable to pay their due credit card or loan payments on time. Understanding how often people default on their due payments is one of the indicators of the cost of living and economic situation.

Frequency and percentage of people who failed to pay their monthly credit card or loan payments on time last year.

Housing costs, accommodation, and housing affordability in Lagos

Rent Cost in Lagos

Monthly Rent Prices

Studio apartment monthly rent cost

32,000 NGN

49,000 NGN

130,000 NGN

MINIMUM

AVERAGE

MAXIMUM

$21

$31

$84

1-bedroom apartment monthly rent cost

49,000 NGN

78,000 NGN

190,000 NGN

MINIMUM

AVERAGE

MAXIMUM

$31

$50

$130

2-bedroom apartment monthly rent cost

65,000 NGN

97,000 NGN

260,000 NGN

MINIMUM

AVERAGE

MAXIMUM

$42

$63

$170

3-bedroom apartment monthly rent cost

78,000 NGN

130,000 NGN

350,000 NGN

MINIMUM

AVERAGE

MAXIMUM

$50

$84

$230

Furnished apartment monthly rent cost

160,000 NGN

390,000 NGN

780,000 NGN

MINIMUM

AVERAGE

MAXIMUM

$100

$250

$500

Townhouse monthly rent cost

130,000 NGN

190,000 NGN

560,000 NGN

MINIMUM

AVERAGE

MAXIMUM

$84

$130

$360

House monthly rent cost

160,000 NGN

390,000 NGN

780,000 NGN

MINIMUM

AVERAGE

MAXIMUM

$100

$250

$500

Villa monthly rent cost

190,000 NGN

490,000 NGN

780,000 NGN

MINIMUM

AVERAGE

MAXIMUM

$130

$310

$500

The monthly rental cost of a studio apartment in Lagos ranges between 32,000 NGN and 130,000 NGN, meanwhile the cost of monthly rental of a one-bedroom apartment can be anywhere from 49,000 NGN to 190,000 NGN. Two-bedroom rentals rate ranges between 65,000 NGN and 260,000 NGN per month. The monthly rental for a three-bedroom apartment ranges from 78,000 NGN to 350,000 NGN. The average rent of a townhouse in Lagos is around 190,000 NGN while house rental costs can be as high as 390,000 NGN per month. Finally, if you want to rent a villa, expect to pay anywhere from 190,000 NGN to 780,000 NGN per month.

Apartment and house prices in Lagos

Cost of buying a property

Studio apartment price

6.5M NGN

9.7M NGN

19M NGN

MINIMUM

AVERAGE

MAXIMUM

$4,200

$6,300

$13,000

1-bedroom apartment price

7.8M NGN

13M NGN

49M NGN

MINIMUM

AVERAGE

MAXIMUM

$5,000

$8,400

$31,000

2-bedroom apartment price

13M NGN

39M NGN

78M NGN

MINIMUM

AVERAGE

MAXIMUM

$8,400

$25,000

$50,000

3-bedroom apartment price

43M NGN

65M NGN

190M NGN

MINIMUM

AVERAGE

MAXIMUM

$28,000

$42,000

$130,000

Townhouse price

56M NGN

130M NGN

490M NGN

MINIMUM

AVERAGE

MAXIMUM

$36,000

$84,000

$310,000

House price

65M NGN

390M NGN

560M NGN

MINIMUM

AVERAGE

MAXIMUM

$42,000

$250,000

$360,000

Villa price

78M NGN

430M NGN

650M NGN

MINIMUM

AVERAGE

MAXIMUM

$50,000

$280,000

$420,000

The average price of a studio apartment in Lagos can range from 6.5M NGN to 19M NGN depending on location. One bedroom cost can be anywhere from 7.8M NGN to 49M NGN. A villa can cost you 430M NGN on average with prices ranging from 78M NGN to 650M NGN.

House / apartment prices to income ratio

Property prices in Lagos can be x90 to x215 multiples of the monthly income depending on the property and the income of the person. On average, property prices are approximately x90 multiples of the average monthly salary in Lagos.

Rent to income ratio

The average rent-to-income ratio in Lagos is around 32%. This means that people pay 32% of their income for rent. Those figures can range from 21% to 44% depending on the salary, location, and type of property.

Housing affordability index

The housing affordability index measures how affordable accommodation is in a particular place. This can measured in multiple ways, the most common being housing expenditure to total expenditure ratio and the rent to income ratio. The housing expenditure ratio is a figure reported by individuals on the percentage they allocate for housing. Rent to income ratio is calculated by dividing the average monthly rent by the average income. Because these values are both percentages, we can find their average and get the best of the two worlds.

Property Taxes

Real estate owners pay property taxes to local tax authorities, which are determined by the assessed value of their property. Typically, these taxes are paid once a year. Property tax funds contribute to community development, financing infrastructure improvements, public services, and local education initiatives.

Home Maintenance Costs

Home maintenance costs encompass various expenses associated with the upkeep and repair of a residence. These expenditures include regular tasks such as lawn care, pest control, and HVAC system servicing, as well as occasional repairs and renovations like fixing leaks, painting, or replacing appliances.

Urban vs. rural living costs

Urban living typically entails higher housing and transportation costs due to demand and limited space, while rural areas generally offer lower housing expenses but may have higher prices for goods and services. The differnce in rental rates between urban areas and rural areas can be as high as 300% in some cases.

Monthly costs and expenses of energy and basic utilities in Lagos

Energy, electricity, water, gas, internet, and mobile cost in Lagos

Utility Bill Cost / Electricity + Water + Gas / Family

11,000 NGN

30,000 NGN

200,000 NGN

MINIMUM

AVERAGE

MAXIMUM

$6.9

$20

$130

Internet and cable cost

1,800 NGN

3,600 NGN

4,700 NGN

MINIMUM

AVERAGE

MAXIMUM

$1.1

$2.3

$3.1

Mobile phone bill and charges

1,400 NGN

2,400 NGN

7,100 NGN

MINIMUM

AVERAGE

MAXIMUM

$0.92

$1.5

$4.6

The average monthly energy and water consumption of families is around 30,000 NGN. The cost of internet and WiFi ranges from 1,800 NGN to 4,700 NGN with 3,600 NGN being the average internet bill. Finally, the average monthly mobile charges is around 2,400 NGN but can range between 1,400 NGN and 7,100 NGN depending on consumption. Mobile charges include both calling minutes as well as data packages.

Energy / Utility expense to income ratio

The average utility-to-income ratio in Lagos is around 8%. This means that people pay 8% of their income for energy, water, internet, and mobile charges. Those figures can range from 4.6% to 13% depending on salary and location.

Food Prices, Dining Expenses, and Grocery Costs in Lagos

Prices and cost of goods and services in Lagos

Dining out, food, and beverages costs. Price variations for common food items.

Fast food combo meal price

360 NGN

710 NGN

1,200 NGN

MINIMUM

AVERAGE

MAXIMUM

$0.23

$0.46

$0.76

The average price of a regular combo meal at a fast food outlet or chain like McDonald's, Pizzahut, or KFC in Lagos is approximatly 710 NGN with meal cost ranging from 360 NGN to 1,200 NGN. The typical combo meal consists of a burger, french fries, and a drink.

Restaurant meal for one price

1,200 NGN

1,900 NGN

3,700 NGN

MINIMUM

AVERAGE

MAXIMUM

$0.80

$1.2

$2.4

If you are planning to have a nice meal at a mid-range restaurant, expect to pay anywhere between 1,200 NGN and 3,700 NGN with 1,900 NGN being the average price of a plate for one person at a regular restaurant in Lagos.

Fine dining meal for one price

2,500 NGN

3,700 NGN

15,000 NGN

MINIMUM

AVERAGE

MAXIMUM

$1.6

$2.4

$9.6

The price range of a meal at fine-dining restaurant is 2,500 NGN to 15,000 NGN with the average cost being 3,700 NGN for one person. This is what you would expect to pay a top-tier diner in Lagos.

Beverage prices, cappuccino, latte etc..

300 NGN

470 NGN

710 NGN

MINIMUM

AVERAGE

MAXIMUM

$0.19

$0.31

$0.46

The average price of a regular beverage like cappuccino or latte at Starbucks, Costa, or similar coffee shops and cafes in Lagos is around 470 NGN. Price ranges between 300 NGN and 710 NGN depending on the type of beverage, the size, and optional add-ons.

Grocery and market costs

Large bottle of milk price

240 NGN

280 NGN

360 NGN

MINIMUM

AVERAGE

MAXIMUM

$0.15

$0.18

$0.23

The average price of a large bottle of milk in Lagos is 280 NGN. The maximum what you would pay for milk is 360 NGN and the minimum being 240 NGN depending on the brand of milk and other properties.

12 eggs price

180 NGN

240 NGN

360 NGN

MINIMUM

AVERAGE

MAXIMUM

$0.11

$0.15

$0.23

A dozen eggs costs around 240 NGN on average with 180 NGN and 360 NGN being the lower and upper limits respectively.

Fresh whole chicken price

400 NGN

520 NGN

740 NGN

MINIMUM

AVERAGE

MAXIMUM

$0.26

$0.34

$0.48

The price range of a fresh whole chicken in Lagos is between 400 NGN and 740 NGN depending on the size of the chicken and whether it is oraganic or not. The average price is approximatly 520 NGN.

Pack of beef price

470 NGN

710 NGN

1,400 NGN

MINIMUM

AVERAGE

MAXIMUM

$0.31

$0.46

$0.92

The price of a regular pack of beef or meat is around 710 NGN. A pack of beef contains around 1Kg or 1lb depending on packing.

Medium bag of rice price

190 NGN

260 NGN

370 NGN

MINIMUM

AVERAGE

MAXIMUM

$0.12

$0.17

$0.24

A bag of rice in Lagos costs around 260 NGN on average with prices rangeing between 190 NGN and 370 NGN depending on the brand and quality.

Bag of tomatos price

71 NGN

95 NGN

180 NGN

MINIMUM

AVERAGE

MAXIMUM

$0.05

$0.06

$0.11

A bag of tomatoes costs anywhere from 71 NGN to 180 NGN. A bag of tomatoes denotes 1Kg or 1lb depending on location.

Bag of apples price

130 NGN

170 NGN

270 NGN

MINIMUM

AVERAGE

MAXIMUM

$0.08

$0.11

$0.18

A bag of apples costs 170 NGN on average. A bag of apples denotes 1Kg or 1lb depending on location.

Grocery and food expenditure to income ratio

The average grocery-to-income ratio in Lagos is around 32%. This means that families spend 32% of their income on grocery and basic household items. The expenditure can range from 23% to 39% depending on salary and location.

Expenditure on food and grocery for families