As the cost of living in Nigeria continues to grow, the most costly Nigerian states may come as surprise. The most recent figures from the March 2024 Consumer Price Index (CPI) reveal rising inflation rates.
This increase in pricing, which includes both vital commodities and food products, is putting a hardship on individuals’ daily lives, especially in diverse states across the country.
According to the most recent National Bureau of Statistics (NBS) data, Nigeria’s inflation rate has reached a near-record high of 33.2% in March 2024.
The results show a significant variation in the cost of living throughout Nigeria’s states, with some areas facing a disproportionately larger burden.
Here’s a list of the top five most expensive states to live in as of March 2024, according to the most recent statistics:
1. Kogi State
The latest March inflation numbers underscore Kogi State’s continuous battle with rising prices, maintaining its standing as one of Nigeria’s most economically troubled regions.
With an all-item inflation rate of 39.95% in March, up from 37.98% the previous month, and food inflation of 48.47%, a considerable increase from February’s 46.32%, the state is facing strong inflationary pressures.
What stands out is Kogi State’s distinction for having the biggest month-on-month increases in both categories.
The all-items inflation rate rose 1.97%, while food inflation increased by 2.15%.
These numbers highlight a worsening economic situation, with the rising cost of food driving the inflationary trend.
The rapid increase in food inflation in Kogi State could be due to a variety of underlying causes. Supply-side restrictions, such as disruptions in agricultural production or distribution channels, could be contributing to the increase in food prices.
2. Bauchi State
Bauchi State has improved its affordability ranking, moving from third to second among Nigeria’s most costly states.
In March, the state’s all-item inflation rate was 38.34%, up slightly from 35.62% in February.
However, an unexpected observation emerges when studying food inflation, which fell to 34.38% in March from 31.46% in February, indicating a more nuanced economic environment.
Bauchi State follows an unusual pattern, with a moderate 2.72% increase in all-items inflation and a smaller rise of 2.92% in food inflation.
3. Kwara State
Kwara State made significant gain in the affordability rankings in March 2024, moving from fourth to third place on the list of Nigeria’s most expensive states to live in.
During this time, the state had a significant increase in inflation rates across all categories, with all-item inflation climbing to 38.10% from 35.50% in February.
Similarly, food inflation rose to 46.18% in March, from 43.05% in February.
The 2.60% increase in the all-items inflation rate and the 3.13% increase in food inflation indicate a considerable increase in both rates.
This increase in pricing indicates a significant increase in the cost of living, notably for food goods.
The significant increase in food inflation rates may be due to a variety of variables.
Local disruptions in food production or distribution routes, together with increased demand pressures, may have contributed to the significant increase in food prices across the state.
4. Oyo State
Oyo State moved from the second most expensive Nigerian state in February 2024 to fourth place in March 2024.
During this time, the state had a slight increase in inflation rates across all products, with all-item inflation climbing to 37.30% in March from 36.60% in February.
Similarly, food inflation increased slightly to 41.83% in March from 40.30% the prior month.
Although the 0.70% increase in the all-items inflation rate is notable, it indicates a relatively stable economic situation when compared to other states experiencing more severe inflationary pressures.
However, the 1.53% increase in food inflation highlights the importance of food costs to the overall inflationary picture.
The results show that, while Oyo State is not facing the same level of inflationary pressure as other regions, the rise in food costs remains a major worry.
5. Rivers State
For the second time in a row, Rivers State is the fifth most expensive Nigerian state, with March’s all-item inflation rate rising to 37.20% from 35.42% in February.
Similarly, food inflation increased little in March to 45.08% from 44.34% the prior month.
The 1.78% increase in all-items inflation, along with a 0.745-point increase in food inflation, suggests a persistent inflationary environment.
However, the comparatively low increase in food costs shows that the food market is in slightly better shape than the rest of the economy.
