Osun Tops Nigeria’s Cheapest States as Inflation Climbs: Full Ranking Revealed
- Nigeria's headline inflation rose to 15.38% in March 2026, revealing ongoing price pressures across the economy
- State-level inflation data shows significant regional differences in living costs, affecting affordability for Nigerians
- Osun emerges as Nigeria's most affordable state with 5.25% inflation, highlighting the impact of location on expenses
Pascal Oparada is a journalist with Legit.ng, covering technology, energy, stocks, investment, and the economy for over a decade.
Nigeria’s headline inflation rate ticked up to 15.38% in March 2026, from 15.06% in February, according to the National Bureau of Statistics (NBS).
While the increase appears modest, it underscores persistent price pressures across the economy.
Source: Getty Images
Yet, national averages often blur the lived reality. Across Nigeria, the cost of living varies sharply from state to state, shaped by factors such as agricultural output, infrastructure, security, and supply chain efficiency.
Global developments are also feeding into domestic prices. Tensions in the Middle East, particularly around the Strait of Hormuz, have pushed crude oil prices higher, raising fuel and transportation costs. Historically, such shocks tend to hit emerging economies like Nigeria harder, amplifying inflation.
Against this backdrop, state-level inflation data offers a clearer picture of where Nigerians can live more affordably.
Nigeria’s 10 most affordable states (March 2026)
10. Imo – 11.99%
Imo slipped to tenth place as inflation rose slightly, with food prices climbing sharply. Despite this, moderate housing and service costs, especially outside Owerri, help keep living expenses relatively manageable.
Ongoing investments in agriculture and energy aim to ease future pressures.
9. Katsina – 11.86%
Katsina dropped from first place as inflation increased, though food prices remain relatively low.
Its agrarian economy and subsidised food programmes continue to cushion residents, even as limited industrial activity constrains income growth.
8. Ogun – 11.62%
Ogun recorded a sharp drop in inflation, driven by easing food prices and strong infrastructure spending. Its proximity to Lagos makes it a cost-saving alternative for workers, though demand spillovers keep food prices slightly elevated.
7. Kebbi – 11.42%
Kebbi’s inflation fell significantly, supported by aggressive agricultural policies and dry-season farming. Locally produced staples, especially rice, help stabilise food prices, while low population density keeps housing costs down.
Middle tier: Stability with trade-offs
6. Oyo – 11.34%
Oyo stands out for its exceptionally low food inflation. Investments in transport, agriculture, and social welfare have improved affordability, particularly in Ibadan, where moderate rents and strong food supply offer balance.
5. Edo – 11.17%
Edo presents a mixed picture. While overall inflation declined, food prices surged, putting pressure on households. Infrastructure upgrades and business reforms may improve cost conditions over time.
4. Jigawa – 10.70%
Jigawa continues to benefit from its agrarian base, with both food and headline inflation easing.
Low population density and local food production keep basic living costs within reach, though economic diversification remains limited.
Top 3 cheapest states in Nigeria
3. Kaduna – 10.38%
Kaduna offers a balanced cost environment, combining moderate inflation with stronger infrastructure and economic activity than many northern states. Stable food prices and expanding agriculture support affordability.
2. Kano – 9.85%
Kano remains one of the most affordable major commercial hubs. A sharp drop in food inflation, combined with strong market networks and agricultural output, ensures low living costs despite its large population.
1. Osun – 5.25%
Osun emerged as Nigeria’s most affordable state, recording a dramatic drop in inflation. Lower housing costs, improved infrastructure, and business-friendly reforms have strengthened its position.
While food inflation remains moderately high, overall expenses, from rent to transportation, are significantly lower than in most states.
The state’s slower-paced economy and reliance on agriculture and small businesses also help keep daily costs in check.
What this means for Nigerians
The latest data reinforces a crucial point: where you live in Nigeria significantly shapes your cost of living.
States with strong agricultural output and lower urban pressure tend to offer better affordability, while more industrialised or high-demand areas face persistent price strain.
Source: Getty Images
As inflation continues to evolve amid global uncertainty, these regional differences will become even more important for households, businesses, and policymakers alike.
For many Nigerians, affordability is no longer just about income—it’s increasingly about location.
10 states with highest food inflation
Legit.ng earlier reported that the NBS has revealed that Nigeria’s food inflation rate eased on a year-on-year basis in February 2026 to 12.12%.
This represents a decline of 14.86 percentage points compared to 26.98% recorded in February 2025.
However, the latest data shows a sharp increase in food prices on a month-on-month basis.
Source: Legit.ng
