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.
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.
