Here are the 10 Nigerian states with the highest cost of living based on the January 2026 Consumer Price Index (CPI) data from the National Bureau of Statistics, ranked by year-on-year price increases:
- Benue – 22.5 %
- Kogi – 21.0 %
- Federal Capital Territory (Abuja) – 19.2 %
- Adamawa – 19.2 %
- Yobe – 19.1 %
- Osun – 18.1 %
- Nasarawa – 17.3 %
- Anambra – 17.3 %
- Oyo – 16.9 %
- Niger – 16.9 %
According to the latest Consumer Price Index (CPI) report released by the National Bureau of Statistics, Nigeria’s cost-of-living landscape in January 2026 reveals a striking diversity across the federation — underscoring how inflation is not a uniform national experience but a deeply localised economic reality.
While the headline inflation figure provides a broad snapshot of price movements, a closer examination of state-by-state data tells a more nuanced story. Across Nigeria’s six geopolitical zones, households are navigating sharply different price pressures shaped by regional supply chains, security conditions, transport costs, urban density and consumption patterns.
In several northern states, food inflation remains the dominant driver of cost-of-living increases. Disruptions in agricultural production, logistics bottlenecks and fluctuating input costs continue to ripple through local markets. For many households, staple foods — grains, tubers, vegetable oils and proteins — consume an expanding share of monthly income, tightening discretionary spending and deepening vulnerability among lower-income earners.
Conversely, parts of the southern corridor, particularly high-density urban centres, are experiencing inflation pressures driven more by services, housing and transportation. Rent adjustments, energy costs and intra-city logistics expenses are shaping the inflation basket differently from predominantly agrarian regions. The urban inflation story is therefore less about raw food scarcity and more about structural service-sector costs embedded within city economies.
The CPI data also highlights the persistent divergence between rural and urban inflation trends. Rural communities, though often closer to food production sources, are not insulated from rising input costs or distribution inefficiencies. In some instances, weaker infrastructure magnifies price volatility. Urban households, meanwhile, face compound pressures from housing, education, healthcare and transport — sectors that tend to adjust prices rapidly in response to macroeconomic shifts.
Another notable feature of January 2026’s inflation profile is the variation in month-on-month price movements. Some states recorded easing pressures compared to late 2025, suggesting improved supply flows or seasonal moderation. Others saw accelerated price growth, reflecting localised shocks or demand spikes. This divergence reinforces the need for decentralised economic responses rather than a purely centralised inflation management framework.
From a policy standpoint, the CPI figures provide more than statistical insight; they serve as a diagnostic tool. For fiscal authorities and sub-national governments, the data presents an opportunity to tailor interventions — whether through targeted food support programmes, transport subsidies, infrastructure investment or market regulation reforms. For investors and businesses, the regional spread of inflation signals where consumer purchasing power is under strain and where resilience may be emerging.
For ordinary Nigerians, however, the CPI translates into lived experience: the cost of a bag of rice, transport fares to work, school fees, electricity bills and rent renewals. It shapes household budgeting decisions and influences savings behaviour. It determines whether income growth, if any, keeps pace with rising prices.
The January 2026 CPI report ultimately underscores a central truth about Nigeria’s economy — it is vast, varied and uneven. National averages may frame the conversation, but the real story of inflation unfolds state by state, market by market and household by household. As policymakers refine economic stabilisation efforts in the months ahead, recognising and responding to this regional diversity will be critical to achieving inclusive and sustainable price stability.
