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.
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.
