The financial capital of Nigeria Lagos, has been ranked among world cheapest cities, being the only African city on the list, with Caracas in Venezuela as the first.
The annual survey carried out by Economist Intelligence Unit, has Lagos sharing sixth position with Karachi in Pakistan. The survey noted that costs in the cheapest cities were low by Western standards, majorly because of low wages.
This according to the survey limit household spending.
It also said a “growing number of locations” were becoming cheaper because of the impact of political or economic disruption, citing crisis-hit Caracas in Venezuela and war-torn Damascus in Syria, which are at the bottom of the list. “There is a considerable element of risk in some of the world’s cheapest cities,” the report said. “Put simply, cheaper cities also tend to be less livable.” The other cities were, Damascus (Syria), Tashkent (Uzbekistan), Almaty (Kazakhstan), Bangalore (India), Buenos Aires (Argentina), Chennai (India) and New Delhi (India) respectively.
The survey compares the cost of 160 items, such as food, drink, transport, utility bills, and rent, in 133 cities. It then tracks whether prices have gone up or down by comparing them with the cost of living in New York, which is used as a benchmark. In this year’s survey, three cities shared first position as the world’s most expensive city. They comprise of Singapore in Singapore, Paris in France and Hong Kong in China.
In the survey, Zurich (Switzerland), Geneva (Switzerland), Osaka (Japan), Seoul (South Korea), Copenhagen (Denmark), New York (U.S.), Tel Aviv (Israel) and Los Angeles (U.S.) were the other cities ranked among the most expensive. The annual index was designed to help companies calculate cost-of-living expenses for expatriates and business travelers.