Few places around the world have been identified by the cost of living. Be it high or low. One concern today is the high cost of living. In subsequent posts, we will also look at the places with low costs of living. For now, let’s focus on the high cost of living, evaluating its pros and cons on humans, i.e., how it affects the value of life and life expectancy, among other factors.
Most of these places with the high cost of living are prominent cities around the world such as Switzerland, Paris, Newyork, London and of course our dear Lagos. Yes!!! for some, the inclusion of Lagos could be a subject of debate considering or evaluation based on the dollar rate as an index for global comparison. But if considering or evaluating based on wages and incomes against expenditures and value for money, you’ll agree with me that Lagos indeed has a high cost of living. Now let’s look at the elements these cities share.
One of the things these places share in common is the dense population amongst others… The high population in most of these places makes the need for infrastructure a constant for the state administration and in efforts to bridge this, the laws of demand and supply just like in economics sets in. Take for instance Housing or Accommodation. When you hear the amount for renting apartments, you will wonder. The cost of renting a studio apartment in London is almost the cost of renting a 2bedroom in a choice area in Lagos. But when you look at the wage structure of London, you will agree that it justifies the high cost of the rent. Coming back to Lagos, the cost of house rent makes many people working in Lagos island CBD (Central Business District) look for accommodation on the mainland in places such as Gbagada, Ogudu, Ketu, Agidingbi, Ikeja, Mafoluku, Ogba and Egbeda. Also, they live further down the island towards Ajah, Sangotedo, Lakwe, and finally Epe. These are the axis the wages of people working in the Island CBD can averagely afford. While those on the mainland CBD live further down the mainland in places such as Ikotun, Igando, Ayobo, Sango-Otta, and even sometimes neighbouring state communities such as Akute, Mowe-Ibafo, Lafenwa-Itele all in Ogun State. These are placing the wages in mainland CBD can averagely afford in terms of accommodation. Housing cost has always been a challenge in Lagos state, and it is part of the reason for the traffic congestion we experience on Lagos roads as many people live far from where they work due to the cost of the rent. Hence, the ripple effect of this cost of rent takes its toll on the road and the human body as I have also explained, in some of my earlier posts on Lagos Traffic as a stress factor.
Have you ever wondered why the cost of house rent in Lagos is on the high side? It is no 2 other reasons than the density in population versus work availability. It is believed that Lagos state has a commendable infrastructure in place that aids the availability of job opportunities compared to its neighbouring states. Though this position is subjective and may further make you ask what infrastructure exactly is present in Lagos when we look at international standards. A few can be identified. The presence of Seaports has made Lagos a hub where sea transportation for haulage is frequent. The Airports will continue to attract more people into Lagos state whether for business or fun(holiday). All these transactions speak to the need for housing for travellers and for residents. Diplomats fly in and out frequently, they will surely need apartments to stay in. It is no doubt that the Hotel business is one of the thriving businesses in Lagos, this accommodates a short stay depending on capacity and need. The Standard of education in Lagos is believed to be better or near international expectations. So the availability of schools (Primary to Tertiary) available is a factor in the increased population which affects the rent rate. The rent rate will continue to be on the increase because of the inflow of people concentrated in the state for various reasons.
To be continued………
Motunrayo Awomolo
M.A.
BAYES THEOREM