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).

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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 – 11.99% (Food inflation: 12.7%)

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.

Katsina – 11.86% (Food inflation: 7.5%)

Katsina State, located in Nigeria’s North-West region, recorded an annual inflation rate of 11.86% in March 2026, rising from 7.8% in February.

Food inflation also increased slightly, standing at 7.5% in March, compared to 5.1% in February, reflecting a gradual rise in the cost of staple commodities.

As a result of these movements in price levels, Katsina State slipped from first position in February’s affordability ranking to ninth place in March 2026, indicating a relative shift in its cost-of-living advantage compared to other states.

In response to inflationary pressures, the administration of Governor Dikko Umaru Radda has adopted a broad economic strategy under the 2026 “Building Your Future III” budget, aimed at reducing living costs and strengthening food security across the state.

A major focus of the budget is agriculture, which received N78.6 billion in funding to boost food production and stabilize market prices. This includes the distribution of free fertilizers, improved seeds, and farm machinery to support local farmers and increase output.

In addition, the government introduced designated subsidized retail outlets where essential food items are sold at reduced prices, particularly targeting civil servants and vulnerable households.

To further cushion the impact of inflation, the state also allocated N7.68 billion for grain procurement, ensuring buffer stocks that can help stabilize food supply during shortages.

Katsina’s relatively low food inflation remains one of its strongest advantages. As a predominantly agricultural state, it benefits from local production of grains and livestock, which reduces dependence on costly external supply chains and imports. Its lower level of urbanization also helps keep housing and lifestyle costs relatively affordable.

However, the state’s limited industrial base continues to constrain job creation and higher income opportunities, even as it maintains a relatively low cost of living compared to more urbanized regions.

Ogun – 11.62% (Food inflation: 12.6%)

Ogun State in South-West Nigeria recorded a notable decline in inflation in March 2026, with the headline rate dropping to 11.62% from 17.8% in February. Food inflation also eased to 12.6%, down from 15.2%, indicating some relief in the cost of essential goods.

As of early 2026, the state government, led by Dapo Abiodun, has pursued a mix of expansionary fiscal measures, targeted agricultural interventions, and sustained infrastructure development to curb inflationary pressures and improve living standards.

Central to this strategy is the N1.669 trillion 2026 budget, representing a 58% increase over the previous year. Of this, 63%—amounting to N1.044 trillion—is allocated to capital projects.

The emphasis on capital expenditure is designed to stimulate economic activity, enhance productivity, and address structural bottlenecks that contribute to rising costs.

In the agricultural sector, the government has intensified efforts to reduce food inflation through increased investment in local production. This includes expanding aquaculture initiatives aimed at reducing dependence on fish imports while boosting domestic supply.

Ogun’s relative affordability is also reinforced by its strategic proximity to Lagos. A significant number of residents live in Ogun while working in Lagos, benefiting from comparatively lower housing costs.

At the same time, the state’s expanding industrial base continues to support job creation.

However, food prices remain slightly elevated, partly due to demand spillover from neighbouring Lagos.

Kebbi – 11.42% (Food inflation: 11.3%)

Kebbi State in North-West Nigeria recorded a sharp decline in inflation in March 2026, with the headline rate easing to 11.42% from 18.4% in February. Food inflation followed a similar trend, dropping to 11.3% from 18%, reflecting improved stability in the prices of essential commodities.

As of early 2026, the state government under Nasir Idris has concentrated its anti-inflation strategy on agricultural expansion, dry-season farming support, targeted food palliatives, and a capital-driven fiscal framework aimed at sustaining long-term economic stability.

A key component of this approach is the 2026 Dry Season Farming Programme, launched in March. The initiative involves the distribution of subsidised inputs—including fertilisers, improved seeds, and solar-powered irrigation pumps—to farmers, with the goal of boosting food production and easing pressure on food prices.

Complementing this is the N642.9 billion 2026 Appropriation Law, of which approximately 75% (about N479.3 billion) is allocated to capital expenditure. This strong emphasis on infrastructure and development projects is intended to stimulate economic activity, lower production and logistics costs, and ultimately reduce the cost of doing business across the state.

Kebbi’s economic structure, anchored largely on agriculture—particularly rice production—continues to play a stabilising role in food pricing.

The availability of locally produced staples helps keep basic meals affordable. In addition, relatively low population density contributes to cheaper housing and transportation costs.

However, these advantages are balanced by limited access to modern amenities and a slower pace of economic diversification.

Oyo – 11.34% (Food inflation: 4.9%)

Oyo State recorded a significant moderation in inflation in March 2026, with the headline rate dropping sharply to 11.34% from 21.6% in February.

Even more striking was the decline in food inflation, which fell to 4.9% from 14.9%, signalling improved food price stability across the state.

As of early 2026, the state government, led by Seyi Makinde, has rolled out a series of targeted interventions under its “Budget of Economic Expansion” to cushion the impact of rising living costs and sustain economic growth.

In March, the government approved a N10,000 transportation allowance for public sector workers to offset commuting expenses.

This was complemented by a partnership with the Presidential Compressed Natural Gas (CNG) Initiative to deploy affordable CNG-powered buses, aimed at reducing transport costs for residents.

The state’s N891.98 billion 2026 Appropriation Law places strong emphasis on capital expenditure, which accounts for 56.37% of the budget. This allocation is geared towards enhancing infrastructure, strengthening local production capacity, and improving logistics—key factors in reducing the overall cost of goods and services.

Social welfare has also been prioritised. In January 2026, the government approved a 200% increase in monthly gratuity payments to retirees, and by April, over N37 billion had been disbursed. This intervention is designed to ease financial pressures on senior citizens and stimulate household spending.

In the agricultural sector, continued investment in Special Agro-Industrial Processing Zones (SAPZ) is helping to add value to primary produce and stabilise food supply chains.

Additionally, the OD-CARES programme has provided bi-monthly cash transfers of N20,000 to vulnerable households, alongside grants to small businesses to boost economic activity at the grassroots level.

Oyo stands out for its exceptionally low food inflation, driven by strong agricultural output that helps keep prices stable.

Urban centres such as Ibadan combine relatively affordable food with moderate housing costs and a vibrant commercial ecosystem, positioning the state as one of the most balanced in terms of both affordability and economic opportunity.

Edo – 11.17% (Food inflation: 19.4%)

Edo State in South-South Nigeria recorded a decline in headline inflation in March 2026, with the rate easing to 11.17% from 15.4% in February. However, food inflation moved in the opposite direction, rising to 19.4% from 17.7%, highlighting persistent pressures in the cost of essential food items.

In response to these dynamics, the state government under Monday Okpebholo has unveiled a N939.85 billion 2026 appropriation plan tagged the “Budget of Hope and Growth.”

The fiscal strategy is designed to stimulate economic activity by boosting local production, upgrading critical infrastructure, and providing targeted support to micro, small, and medium-sized enterprises (MSMEs) to drive job creation.

A major feature of the budget is its strong tilt toward capital expenditure, which accounts for 68% of total spending. Within this, N614.2 billion is allocated to the economic sector, with a focus on road rehabilitation, flyover construction, and drainage projects.

These investments are expected to ease transportation bottlenecks, improve the movement of goods, and lower transaction costs across the state.

In addition, the government has introduced the Business Enabling Reforms Action Plan (BERAP), aimed at improving the ease of doing business and attracting investment into key sectors of the economy.

Edo presents a mixed inflation outlook. While overall inflation remains relatively moderate, the sharp rise in food prices suggests ongoing supply chain constraints or a degree of dependence on food imports.

As a result, although housing and services may remain relatively affordable, the cost of daily feeding continues to place significant pressure on household budgets.

Jigawa – 10.70% (Food inflation: 10%)

Jigawa State in North-West Nigeria recorded a further easing of inflation in March 2026, with the headline rate declining to 10.7% from 16.5% in February. Food inflation also moderated, dropping to 10% from 14.5%, reflecting improved stability in the prices of staple commodities.

Following the signing of the 2026 Appropriation Law by Umar Namadi, the state government has intensified efforts to curb inflation through a combination of capital-driven investments and targeted economic policies aimed at lowering living costs and strengthening food security.

The N901.84 billion budget places strong emphasis on agriculture and infrastructure, sectors seen as critical to addressing inflationary pressures at their root.

As part of these efforts, the government approved the procurement of rice parboiling stoves and solar bubble dryers, with an investment of N1.6 billion to enhance processing capacity, reduce post-harvest losses, and add value to local agricultural produce.

Jigawa’s relative affordability is largely driven by its agrarian economy and low population density, which help keep both food and housing costs within reach for most residents.

While this makes the state attractive for low-cost living, it also reflects limited urban infrastructure and fewer opportunities for economic diversification compared to more industrialised regions.

Kaduna – 10.38% (Food inflation: 10.2%)

Kaduna State recorded a further moderation in inflation in March 2026, with the headline rate declining to 10.2% from 13.5% in February. Food inflation followed the same trajectory, easing to 10.2% from 11.6%, suggesting a gradual stabilisation in the prices of essential goods.

In response to cost-of-living pressures, the state government under Uba Sani has rolled out a series of policy measures anchored on its 2026 “Budget of Transformation for Inclusive Development.”

The strategy combines agricultural expansion, fiscal discipline, and targeted social interventions to cushion households and sustain economic stability.

A key feature of the budget is its focus on agriculture and food security, which accounts for 11% of total spending. This builds on earlier investments aimed at boosting local food production, strengthening supply chains, and reducing dependence on external sources—factors critical to managing inflation.

Kaduna presents a relatively balanced economic environment, offering a blend of urban and rural advantages. Compared to many northern states, it benefits from stronger infrastructure, a growing industrial base, and the presence of key administrative institutions, all of which support employment opportunities.

At the same time, living costs remain relatively moderate, and the stability in both headline and food inflation provides households with greater predictability in managing expenses.

Kano – 9.85% (Food inflation: 4.3%)

Kano State in North-West Nigeria recorded a notable decline in inflation in March 2026, with the headline rate easing to 9.85% from 14.2% in February. Food inflation dropped even more sharply to 4.3% from 11.8%, indicating significant relief in the cost of staple foods.

In 2026, the state government under Abba Kabir Yusuf implemented a broad set of measures to address inflationary pressures and improve living conditions.

At the centre of this approach is a record N1.47 trillion budget signed into law on January 1, 2026, with strong emphasis on infrastructure expansion, agricultural development, and fiscal discipline to stabilise prices.

The budget allocates N26.36 billion to agriculture, aimed at boosting food production and strengthening supply chains. Additional investments in rural access and community development are designed to improve market connectivity, reduce post-harvest losses, and ultimately lower food costs across the state.

To complement these efforts, the government has approved a new minimum wage of N71,000, a policy expected to enhance workers’ purchasing power and support overall household welfare.

Kano remains one of the most commercially vibrant states in northern Nigeria.

Its extensive market networks and strong agricultural base contribute to relatively low food prices, as consistent supply and competitive trading systems help keep costs in check.

Coupled with comparatively affordable housing, the state offers one of the most attractive affordability profiles among Nigeria’s major urban centres.

Osun – 5.25% (Food inflation: 12.1%)

Osun State in South-West Nigeria emerged as the most affordable state in the country in March 2026, following a sharp decline in inflation.

The headline inflation rate dropped significantly to 5.25% from 19.3% in February. However, food inflation remained relatively elevated at 12.1%, although this also declined from 15.9% in the previous month.

Under the leadership of Ademola Adeleke, the state government has implemented a range of policy measures anchored on its 2026 “Budget of Economic Transformation.” The strategy focuses on infrastructure development, agricultural support, and social welfare interventions aimed at easing economic pressures on residents.

The 2026 budget allocates 55%—equivalent to N388.38 billion—to capital expenditure.

A major component of this investment is the construction and rehabilitation of over 300 kilometres of roads, alongside key flyover projects.

These initiatives are expected to reduce transportation costs, improve connectivity, and enhance the movement of goods across the state.

To further improve the business environment, the government has introduced tax harmonisation measures to eliminate multiple taxation, as well as a streamlined 45-day process for obtaining Certificates of Occupancy.

These reforms are designed to lower the cost of doing business, attract investment, and stimulate economic activity.

Osun’s position as the most affordable state is largely driven by its exceptionally low headline inflation, supported by relatively cheap housing, low transportation costs, and a slower pace of economic life.

The state’s economy, which is rooted in agriculture and small-scale enterprises, helps keep everyday expenses manageable.

However, the persistence of moderate food inflation suggests that overall affordability still depends significantly on household spending patterns on food.