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As sub-Saharan Africa urbanizes, people migrate to cities from across ethnically and religiously diverse countries, opening up new opportunities for intergroup interaction. While there is a rich literature from ethnic politics on the effects of intergroup interaction, there is relatively less literature on whether people may choose to interact with outgroups. Do people prefer completely homogeneous neighborhoods, where they only interact with their ingroup, or do they prefer more diverse environments, where people will interact with out- groups? Using the lens of choosing urban neighborhoods in Nigeria, I explore whether people hold preferences for homogeneity or diversity using a set of online experiments conducted, supplemented by qualitative interviews conducted in Abuja and Lagos. On average, I find that respondents have mild preferences for coethnic-majority neighborhoods, but not necessarily completely homogeneous neighborhoods. This finding points to a demand for ethnic diversity among many Nigerians, in which they place a high intrinsic value on ethnic diversity and as- sociate ethnic diversity with other positive values like national unity and peace. They are also highly averse to homogeneous, non-coethnic neighborhoods. Further analysis of the conjoint and vignette experiments points to concerns around violence and safety as potential drivers of preferences. I also find that preferences for coethnic neighborhoods are correlated with residential choice.