Imo State has emerged as the most expensive state to live in Nigeria following the rebasing of the Consumer Price Index (CPI) by the National Bureau of Statistics (NBS).
The development marks a significant shift in Nigeria’s inflation rankings, as Bauchi, which held the top spot for seven consecutive months, has been dethroned.
The change comes after the NBS updated its methodology, adjusting the base year from 2009 to 2024, revising the weighting structure, and expanding the consumer basket to better reflect household spending patterns.
A major upset in inflation rankings
- For months, Bauchi had led Nigeria’s inflation charts, holding the highest cost of living since May 2024 after unseating Kogi. However, with the latest rebasing, the all-items inflation rate in Bauchi is no longer the highest, with Imo now taking the lead at 17.77 per cent in January 2025. Before the rebasing, Imo was ranked 35th among Nigerian states in terms of living costs, making its sudden rise to the top one of the most drastic shifts in the ranking.
- According to the latest data from the NBS, Imo’s food inflation stood at 16.80 per cent, further emphasizing the steep cost of food items in the state. In comparison, Bauchi, which once recorded the highest inflation figures, no longer ranks among the most expensive states due to the revised methodology.
- For Bauchi, the all-item inflation rate dropped from 44.06% in December 2025 to 10.06% while food inflation moved from 39.37% to 12.79%, with the state being the 17th most expensive state in the country by January 2025.
Likely factors behind Imo’s rise
The NBS’s rebasing exercise incorporated new household consumption data and a broader variety of goods and services into the CPI calculation.
- The previous methodology heavily weighted food inflation, which contributed to Bauchi’s prolonged stay at the top of the rankings.
- However, the rebasing redistributed weights across sectors, reducing the emphasis on food while incorporating housing, utilities, and services, which have become major price drivers in urbanized states like Imo.
- Imo’s new ranking is largely due to rising housing and transportation costs, as well as higher prices for essential goods and services.
What CPI rebasing means for inflation measurement
The NBS’s decision to rebase the CPI is aimed at improving the accuracy of inflation tracking. The new methodology reflects changing consumption patterns and incorporates more up-to-date price data.
- Before the rebasing, food accounted for over 50 per cent of the CPI calculation, but with the revised structure, the influence of food prices has been reduced to 40 per cent. The updated CPI also includes more product varieties, increasing from 740 to 934 items, and now tracks expenditure on services more comprehensively.
- Additionally, the change from the Dutot index to the Jevon index in computing price movements has made the inflation measure more reflective of real price shifts. The new structure better accounts for price variations between product categories and ensures that Nigeria’s inflation data aligns with global best practices.
- While the rebasing has led to a sharp decline in reported inflation figures, the underlying cost-of-living challenges remain for Nigerian households. Residents of Imo, Ebonyi, and other highly ranked states still face high prices for essential goods and services, even though the reported inflation rates are now lower than before.
The rebased CPI has, however, provided a more accurate representation of inflationary pressures, shifting the focus from just food prices to a broader range of expenses.
What you should know
Nigeria’s headline inflation rate dropped to 24.48% year-on-year in January 2025, following the rebasing of the Consumer Price Index (CPI), according to data released by the National Bureau of Statistics (NBS).
- There is a decline in the general price level of goods and services compared to 34.80% in December 2024, which was calculated using the previous methodology.
- According to the latest NBS report, urban inflation stood at 26.09%, while rural inflation was recorded at 22.15%.
The rebased food inflation index stood at 26.08% year-on-year in January 2025, indicating a decline from the 39.84% recorded in December 2024 under the old methodology.
