Nigeria’s cost of living varied widely across states in August 2025, with some regions offering significantly lower expenses for households and businesses.
The headline inflation for the nation slowed to 20.12% from 21.88% in July 2025.
According to the latest Consumer Price Index (CPI) data released by the National Bureau of Statistics (NBS), several states maintained a slower pace of price increases compared to the national average, making them more affordable destinations.
Persistent inflationary pressures have weighed on Nigerian consumers for much of 2025, particularly in urban centers where food, housing, and transportation costs remain elevated. Yet, pockets of relative stability continue to exist—mainly in states with strong agricultural output, lower population density, or less reliance on imported goods.
Food inflation remains the key cost driver for many Nigerian families, accounting for a large portion of household spending. States that manage to moderate food prices effectively tend to feel more affordable on the ground—even when headline inflation seems high.
The affordability ranking is based on headline inflation rates for August, which measure the year-on-year change in prices across essential goods and services. States with lower inflation rates tend to experience less upward pressure on household budgets, making them attractive for cost-conscious residents and potential investors.
Below are the 10 most affordable states in Nigeria for August 2025.
Ondo State, in Nigeria’s South-West, slipped from 7th place in July to 9th in August 2025 among the nation’s most affordable states.
The state recorded a marginal drop in headline inflation, easing by 0.8 percentage points from 18.4% in July to 17.6% in August. However, this relief was overshadowed by a steep 5.5-point rise in food inflation, which jumped from 17.9% to 23.4%.
State-backed electricity tariff rebates for low-income households helped cushion non-food expenses, while the ongoing Akure–Owo road rehabilitation lowered logistics costs for non-food goods—both contributing to the slight headline improvement. Still, delayed yam harvests caused by early August rains tightened food supply, and soaring prices of staples such as palm oil and cassava flour left households struggling.
Farmers in the state have long raised concerns about structural challenges in the agricultural sector. In May, Nairametrics reported that many lamented the worsening shortage of unskilled labour and the surging cost of farm inputs, which they said were crippling farming activities and straining their finances.
The Chairman of the Ondo State Agricultural Commodities Association (OSACA), Chief Abiodun Adejo, warned that the rainy season farming cycle faces serious threats. He cited a lack of modern equipment, limited access to improved planting inputs, rising insecurity, and the poor state of rural roads as factors undermining productivity and threatening food security across the state.
