Abuja ranked as the cheapest city in Africa for expatriates, UK Court orders seizure of Nigerian government properties by Chinese investor and more…

Abuja ranked as the cheapest city in Africa for expatriates

Mercer's 2024 survey has ranked Abuja as the most affordable African city for expatriates, with Lagos coming in second. Lagos, Nigeria’s commercial hub, saw a significant drop in expatriate living costs, making it more attractive for foreign nationals. The city fell 178 places to 225th in global rankings due to currency devaluations, which were the main factor increasing its affordability. The naira weakened significantly, from 464/$ on June 9, 2023, to 1483.31/$ after the foreign exchange market harmonization on June 14, 2023.

Mercer noted that global economic factors such as inflation, exchange-rate fluctuations, and geopolitical volatility continue to impact living costs. Cities like Hong Kong, Singapore, and Zurich remain expensive due to high housing and transportation costs. Conversely, currency depreciation has driven down living costs in cities like Islamabad, Lagos, and Abuja.

The report emphasized that cost of living is crucial for expatriates when choosing relocation destinations, impacting their quality of life and financial stability. Despite rising inflation in Nigeria, the currency-induced drop in living costs has made it more affordable for international assignees.

Mercer's survey ranked 226 cities globally, with Bangui, Djibouti, and N’Djamena being the most expensive African cities, while Blantyre, Lagos, and Abuja were the least expensive. The ranking provides valuable insights into the cost of living in cities worldwide.

UK Court orders seizure of Nigerian government properties by Chinese investor

A Chinese investor, Zhongshan Fucheng Industrial Investment, has secured the right to enforce a $70 million investment treaty award against Nigeria, resulting in the impending takeover of two Nigerian-owned properties in the UK. This follows a £20 million debt attachment linked to the P&ID case. On June 14, Master Sullivan of the Commercial Court in London issued orders allowing the seizure of two Liverpool properties valued at £1.7 million, converted to commercial use, outside of Nigeria’s diplomatic or consular activities.

The case involves a legal battle over a terminated joint venture with Nigeria’s Ogun State to establish a free trade zone near Lagos in 2013, where Zhongshan held a 60% stake. In 2021, an UNCITRAL tribunal found Nigeria guilty of expropriation and treaty breaches, ordering a $55.6 million payment. Nigeria’s jurisdictional challenge to the award was withdrawn, and in December 2021, an ex parte enforcement order was granted.

Nigeria’s attempts to overturn the enforcement failed, with Master Sullivan ruling that the properties are leased to residential tenants, not used for consular activities. The judge dismissed Nigeria’s objections about the State Immunity Act and the investor’s disclosure. Sullivan upheld the right to multiple enforcement actions, noting Nigeria's failure to pay any part of the award and the small proportion represented by the property value.

Nigeria plans to appeal, arguing that the decision overlooks complex public international law issues, including state immunity and the rights of foreign states to own assets in the UK.

The Housing Commissioner has highlighted a 2.3 million housing gap in Lagos State.

At the Stanbic IBTC Home Ownership Summit on June 25, 2024, Lagos State Commissioner for Housing, Moruf Akinderu-Fatai, represented by Engineer Abdulhafiz Gbolahan Toriola, highlighted a significant 2.3 million housing gap in Lagos. Toriola stressed the growing demand for housing and the need for strategic intervention by government and stakeholders. He noted that the state government has delivered over 10,000 flats across 39 estates and is working on additional 1,938 flats through various affordable housing schemes.

The summit, themed “Building Wealth through Home Ownership,” underscored the importance of home ownership for financial stability. Stanbic IBTC Bank's CEO, Mr. Wole Adeniyi, highlighted the bank’s commitment to facilitating home ownership through competitive loan solutions. Panelist Prince Adeniyi Aromolaran from LSDPC discussed using home ownership as a staff retention strategy, suggesting that companies provide housing incentives to retain employees.

The First Lady of Kogi plans to build a rehabilitation center.

The First Lady of Kogi State, along with Eunice Achimugu, the governor’s special adviser on drug abuse, plans to build a rehabilitation facility for drug users in the state. Announced on June 26, 2024, this initiative aims to address drug misuse and support young people, including those in treatment, with skill acquisition programs. The project is part of a broader effort to combat illicit drug use in collaboration with the National Drug Law Enforcement Agency (NDLEA). The strategy also includes educational campaigns about drug risks and ongoing cooperation with the NDLEA.