Nigeria’s headline inflation rate rose slightly to 15.38% in March 2026, up from 15.06% in February, according to the latest data released by the National Bureau of Statistics (NBS).
The increase is marginal, but it still reflects continued price pressures across the country.
However, national averages often mask the real situation on the ground.
In practice, the cost of living differs significantly from one state to another, depending on factors such as security conditions, transportation costs, supply chain efficiency, agricultural output, and local market dynamics.
While some states are experiencing relatively stable or slower price increases, others continue to face stronger inflationary pressure.
March’s inflation figures also come against a backdrop of heightened global economic uncertainty, largely driven by geopolitical tensions:
- Ongoing tensions in the Middle East have contributed to higher global oil prices, adding to inflationary pressures worldwide.
- Instability around the Strait of Hormuz, a critical route for global oil transport, has increased fears of supply disruptions.
- Rising crude oil prices typically lead to higher fuel costs, which directly push up transportation and goods prices across economies.
- Historically, similar geopolitical shocks have triggered inflation spikes in emerging markets, including Nigeria.
Against this backdrop, state-level differences in price movements become even more important.
Based on state-level headline inflation data for March 2026, the following analysis identifies the Top 10 most affordable states to live in Nigeria, ranked by the lowest headline inflation rates, with supporting consideration of food inflation levels, which have the most direct impact on household spending.
Imo State, located in the South-Eastern region of Nigeria, recorded an annual inflation rate of 11.99% in March 2026, up slightly from 11.7% in February.
Food inflation also rose significantly, reaching 12.7% in March, compared to 7.6% in February, indicating stronger pressure on household food spending during the period.
As a result of these changes in price levels, Imo State moved from second place in February’s affordability ranking to tenth position in March, reflecting a relative decline in its cost-of-living advantage compared to other states.
In response to inflationary pressures and broader economic challenges, the administration of Governor Hope Uzodimma introduced the “Budget of Economic Breakthrough” for 2026. The N1.44 trillion budget, signed in January 2026, is designed to stimulate economic activity, improve productivity, and strengthen purchasing power across the state.
A major feature of the budget is its strong emphasis on capital expenditure, which accounts for 83.4%, signaling a focus on long-term infrastructure and economic development rather than recurrent spending.
Key priorities in the 2026 fiscal plan include a significant investment in agriculture, with the goal of increasing food production by 25% and reducing post-harvest losses by 30% through the development of agro-processing clusters.
The government is also targeting energy reforms aimed at reducing dependence on generators, including the commissioning of the Orashi Electricity Company and support for the Orashi Energy Free Trade Zone, both intended to lower electricity costs for businesses and households.
Imo State’s relative affordability is influenced by its mixed urban–rural economic structure. The capital city, Owerri, still offers comparatively affordable housing when measured against Nigeria’s largest urban centers, while surrounding rural communities contribute significantly to food supply through farming activities.
Although rising food inflation suggests increased pressure on staple goods, overall living costs—particularly rent, transportation, and services—remain moderate.
Additionally, the presence of a large student population and a steady base of civil servants helps stabilize demand, reducing extreme price volatility in the state’s consumer market.
