LAGOS , Nigeria ( CNN ) -- It 's very rarely African cities get compared with their flashy European counterparts , yet , when it comes to cost of living Lagos is n't just competing with its neighbors in Europe -- it 's beating them . Hotel rooms in Lagos , now the 30th most expensive city in the world , now cost hundreds of dollars a night . Nigeria 's coastal economic and financial capital is the shock entry in the top 50 cities of this year 's Mercer Cost of Living survey . The vibrant home to almost eight million Nigerians beat off the likes of Barcelona , Berlin and Brussels , and even U.S. locations such as Washington and Los Angeles -- to be rated the 30th most expensive city in the world . Its streets are now home to BMWs , its waterways play host to multi-million dollar super-yachts , and its hotel rooms fetch hundreds of dollars per night . Yes , if the Mercer survey is anything to go by this is an economic `` boom-town . '' But , how can a city from such a notoriously poverty-stricken region of the world rise to join this list of riches ? The answer : a mix of democracy , private investment and tourism -- according to Lagos governor , Babatunde Fashola . Part of the city 's current level of development undoubtedly rests with the growth achieved during the oil boom of the 1970s , which saw a population explosion and unrestrained economic growth . But Fashola believes there are number of contemporary factors pushing the seventh fastest growing metropolis in the world forwards into a `` truly international city . '' There is a wealth of local resources which has helped the region grow , and now private sector business is becoming the major driver to financial success . `` The government is trying to engage with the private sector . It 's about engaging in partnerships with the private sector -- partnerships that other countries have used successfully for a long time . `` I think [ Lagos is ] beginning to take its rightful place in the community of top international cities . '' Fashola believes the democratic climate in Nigeria has helped the Lagos region develop by offering new-found freedom to local governments , private investors , and other independent groups . `` There 's no perfect democracy . But , if you look at where we came from almost nine years ago , when you could n't criticize government , we are better off today . Elected officials can now be held to account . '' He said that the environment allowed for more robust planning between the government , individuals and the wider public . Independent investors are helping improve local services by investing in private hospitals and schools , but Fashola admits there is still plenty of work to be done , with infrastructure still not up to the standards of other major cities around the world . `` These other cities like New York have reliable and efficient power supply 24 hours a day . We still do not have that in Lagos . '' He told CNN he did not agree with Mercer 's cost of living survey placing Lagos as the `` 30th most expensive city in the world . '' `` Life can not be measured like this . You ca n't compare Lagos with other cities across the globe and across the continent . `` You can not put them on the same scale as they do not have the same resources and infrastructure , '' Fashola said . He added that Lagos is expensive compared to other parts of the country , but that was like comparing prices between `` London and Milton Keynes . '' `` The greater the population and the greater the demand for goods , then the forces of demand and supply will push up the price , '' he said . Despite this , Fashola believes the development of Lagos has not made the city unaffordable for locals . Some central city rents are said to be as high as US $ 6,000- $ 7,000 per month , but Fashola said the situation was the same in many European cities , and locals were surviving . However , if prices are high now , there 's little to suggest they will ease in the near future . Fashola said the growing number of tourists are bringing a lot of new money into the city . `` People are coming in as tourists , but tourists are also investors . They come here to do business at the same time , '' he said . He believes the key to Lagos ' future is catering to these groups . `` We are providing a mix of business and pleasure . A city where people can live , work and play . `` I would like it to become a truly international city , and a center of tourism and business . It has a wonderful Atlantic coastline and we need to use it , '' Fashola said . If cost of living measures and growth meters are anything to go by -- Lagos is well on the way to that end .
Lagos , BMWs is the seventh most expensive city in the world . It beat cities like Barcelona , Los Angeles , Los Angeles and Los Angeles . Private investment and tourism have help local development . Governor metropolis also credits Nigeria 's democracy .