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.
Anambra’s headline inflation dropped by 6.1 points, moving from 20.3% to 14.2%. However, food inflation increased by 1.4 points, climbing from 22.0% to 23.4%. The rise in food costs offsets some of the benefits from easing non-food prices. Anambra’s commercial activity and trade networks have likely softened the blow in some areas.
The Onitsha Main Market digital payment rollout reduced transaction fees for non-food items, improving consumer pricing. State-funded boreholes in rural LGAs lowered household water expenses, contributing to headline relief. However, August fuel scarcity in neighboring states affected food transport into Anambra, lifting grocery prices slightly despite gains elsewhere.
The persistent pressure on food items limits the overall affordability gains.
