Nigeria’s headline inflation rate edged down to 15.91% in June 2026, a marginal drop from 15.93% in May and a sharp decline from 25.29% a year earlier. Yet for millions of Nigerians, the cost of living remains stubbornly high. The National Bureau of Statistics (NBS) released its latest state-by-state inflation data on Wednesday, revealing which parts of the country are the most expensive to call home. The rankings are based on the Consumer Price Index (CPI), which tracks changes in prices for food, housing, transport, and other essentials. Here is a look at the top 10 most expensive states to live in Nigeria as of June 2026.
The National Picture: Disinflation but Not Relief
Nigeria’s inflation rate has been on a downward trend for most of 2026, thanks to tighter monetary policy and improved food supply chains. However, the pace of disinflation has slowed. The June figure of 15.91% is only 0.02 percentage points lower than May’s, suggesting that price pressures are proving sticky. Core inflation, which excludes volatile food and energy prices, stood at 13.4%. Food inflation, the biggest driver of household costs, was 17.8%.
What does this mean for the average Nigerian? In real terms, purchasing power continues to erode. The NBS data shows that the cost of a basic food basket rose by 18% year-on-year in June. For example, a 50kg bag of rice that cost N45,000 in June 2025 now sells for N53,100 in Lagos. A litre of cooking oil has gone from N2,500 to N2,950. States with higher inflation rates tend to have higher living costs, as wages and incomes rarely keep pace. The national minimum wage remains at N70,000 per month, unchanged since April 2024, while the average rent for a one-bedroom apartment in Lagos has crossed N1.2 million annually.
The Top 10 Most Expensive States
The NBS rankings are based on the all-items CPI for each state, with higher indices indicating greater price levels. The base year is 2019, with a CPI of 100. Here are the ten states where residents faced the steepest cost of living in June 2026.
1. Lagos State (CPI: 278.4)
Lagos retains its position as Nigeria’s most expensive state. The commercial capital has an all-items CPI of 278.4 points, driven by high housing rents, transport fares, and food prices. A one-bedroom apartment in a middle-income area like Ikeja now costs an average of N1.2 million per year. In upscale areas like Victoria Island, a two-bedroom apartment rents for N4.5 million annually. Food inflation in Lagos was 19.2%, above the national average. A bunch of plantains that cost N500 in Ibadan sells for N800 in Lagos markets like Mile 12. Transport fares have also surged: a bus ride from Oshodi to CMS now costs N500, up from N350 a year ago.
2. Abuja (FCT) (CPI: 271.1)
The Federal Capital Territory ranks second with a CPI of 271.1. Abuja’s cost of living is heavily influenced by government and diplomatic activity. Rents in districts like Maitama and Asokoro are among the highest in the country, with a three-bedroom apartment costing N3 million to N6 million per year. Food prices are also elevated due to transport costs from producing regions. For instance, a crate of eggs costs N1,800 in Abuja compared to N1,200 in Jos. The price of petrol, which affects everything, is uniform at N650 per litre nationwide, but diesel prices in Abuja hover around N1,200 per litre due to long-distance haulage.
3. Rivers State (CPI: 265.8)
Port Harcourt, the oil hub, comes third with a CPI of 265.8. The state’s economy is buoyed by the oil and gas sector, which pushes up prices for goods and services. Accommodation in areas like GRA and Old GRA is particularly expensive: a two-bedroom flat in GRA Phase 2 rents for N2.5 million per year. Food prices are high because much of the produce is imported from other states. A kilogram of beef costs N3,500 in Port Harcourt, compared to N2,800 in Enugu. The cost of living is further inflated by high electricity tariffs (Band A customers pay N225 per kWh) and expensive private schooling.
4. Delta State (CPI: 261.2)
Delta, another oil-producing state, has a CPI of 261.2. Warri and Asaba are the main urban centers. The cost of food and transportation is high, partly due to the state’s geography and limited agricultural output. A bag of garri that costs N25,000 in Benue sells for N35,000 in Warri. Housing in Asaba’s popular quarters like Okpanam Road has seen rents rise by 15% year-on-year, with a one-bedroom flat now costing N600,000 annually. The state also has high spending on security due to oil theft and pipeline vandalism, which indirectly raises prices.
5. Edo State (CPI: 258.9)
Benin City, the Edo capital, has a CPI of 258.9. The state has seen rising prices for building materials and food. A bag of cement that cost N7,500 in June 2025 now sells for N9,200. Food inflation in Edo was 18.2%, driven by staples like yam and cassava. A tuber of yam costs N2,500 in Benin, up from N1,800 a year ago. The state’s proximity to Lagos and the ports means that imported goods like electronics and clothing are also expensive due to high logistics costs.
6. Oyo State (CPI: 256.4)
Ibadan, Nigeria’s third-largest city, ranks sixth with a CPI of 256.4. While Ibadan is often considered cheaper than Lagos, prices have been climbing steadily. Food inflation in Oyo was 18.5% in June. A 50kg bag of beans that cost N40,000 in 2025 now sells for N48,000. Housing in areas like Bodija and Iyaganku has become pricier, with a one-bedroom flat renting for N500,000 per year. The influx of students and workers from Lagos has driven up demand.
7. Kaduna State (CPI: 254.1)
Kaduna, in the northwest, has a CPI of 254.1. The state has experienced security challenges that disrupt supply chains, pushing up prices. Basic food items like rice and beans cost more here than in many southern states. A 50kg bag of local rice sells for N55,000 in Kaduna, compared to N50,000 in Kano. The cost of transportation is also high due to poor road networks and frequent attacks on highways. For example, a trip from Kaduna to Abuja by bus costs N7,000, up from N5,000 in 2025.
8. Kano State (CPI: 252.7)
Kano, the commercial center of the north, has a CPI of 252.7. Despite being a major agricultural hub, food prices remain high due to post-harvest losses and transport bottlenecks. A 50kg bag of millet costs N38,000 in Kano, while the same bag sells for N35,000 in Katsina. The state’s inflation is also driven by high demand for housing in the city center, where a two-bedroom flat in areas like Nassarawa now rents for N800,000 per year.
9. Anambra State (CPI: 250.3)
Onitsha, one of West Africa’s largest markets, drives Anambra’s high cost of living. The state’s CPI is 250.3. Traders pass on transport and logistics costs to consumers. A carton of spaghetti that costs N15,000 in Lagos sells for N18,000 in Onitsha. Housing in Onitsha’s GRA is expensive, with a three-bedroom bungalow renting for N1.5 million per year. The state also has high electricity tariffs and fuel costs due to its location away from refineries.
10. Enugu State (CPI: 248.9)
Enugu, the coal city, rounds out the list with a CPI of 248.9. The state’s inflation rate has been fueled by rising energy costs and housing demand. A litre of diesel costs N1,300 in Enugu, up from N1,100 a year ago. Food prices have also risen: a basket of tomatoes that cost N5,000 in June 2025 now sells for N7,000. The state’s population growth has pushed up rents in areas like Independence Layout, where a one-bedroom flat now costs N700,000 annually.
What Drives State-Level Inflation?
The differences in living costs across states stem from several factors. Urbanization is a key driver: Lagos, Abuja, and Port Harcourt attract migrants, pushing up demand for housing and services. Security issues in states like Kaduna and Borno disrupt farming and trade, leading to higher food prices. Oil-producing states like Rivers and Delta benefit from higher revenues but also face higher costs due to expatriate demand and limited local production.
Another factor is transportation. States far from ports or major food-producing regions tend to have higher prices. For example, food in Maiduguri (Borno) is expensive partly due to the long distance from farms in the middle belt. The cost of diesel, which powers trucks and generators, varies significantly: in Lagos it is N1,150 per litre, while in Maiduguri it is N1,450.
State-level fiscal policies also matter. Some states impose higher taxes and levies on goods, which are passed to consumers. For instance, Lagos charges a N1,000 development levy on every bag of rice entering the state, adding to the final price.
A Summary for the Record
To put it simply: Nigeria’s most expensive states in June 2026 are Lagos, Abuja, Rivers, Delta, Edo, Oyo, Kaduna, Kano, Anambra, and Enugu, in that order. These rankings reflect the Consumer Price Index data from the National Bureau of Statistics, which measures the average change in prices paid by consumers for a basket of goods and services. The headline inflation rate for June 2026 was 15.91%, down from 25.29% a year earlier, but state-level variations remain significant. For example, while Lagos has a CPI of 278.4, the cheapest state, Taraba, has a CPI of 198.2, meaning a basket of goods that costs N100 in Taraba costs N140 in Lagos.
Implications for Policy and Households
For policymakers, the data highlight the need for targeted interventions. Inflation is not uniform; states with high costs require specific solutions. Improving road networks to reduce transport costs, boosting local food production, and addressing security challenges could help lower prices in high-inflation states. The federal government’s palliative programs, such as the subsidized rice distribution, have been criticized for not reaching the poorest households. In June 2026, only 1.2 million bags of rice were distributed nationwide, far below the 10 million needed.
For households, the message is clear: location matters. A salary that stretches in Ilorin may not cover basic needs in Lagos. Workers and families should factor in living costs when making relocation decisions. Employers, too, may need to adjust wages to reflect regional price differences. Some companies have already introduced location-based allowances: for example, a bank in Lagos offers a 30% cost-of-living adjustment for staff posted there.
Looking Ahead
Nigeria’s inflation trajectory is expected to remain gradual. The Central Bank has held interest rates steady at 22.75% since March, signaling a cautious approach. If global food and energy prices remain stable, further disinflation is possible. But structural issues like poor infrastructure and insecurity will keep pressure on prices in certain states. The NBS is set to release July data on August 15, and analysts expect the headline rate to hover around 15.7%. For now, the NBS rankings serve as a reality check. Nigeria may be seeing lower inflation overall, but for residents of the top 10 most expensive states, the cost of living is still climbing faster than incomes.