Analysis: Nigeria’s Top 10 Most Expensive States in January 2026
Nigeria’s economic landscape in January 2026 presented a complex picture of moderating short-term inflation alongside persistent regional cost pressures. According to the National Bureau of Statistics (NBS), the national headline inflation rate eased to 15.10%, a slight decrease from 15.15% in December 2025. This shift was primarily driven by a significant monthly decline in food prices, with the Consumer Price Index (CPI) falling to 127.4 from 131.2. On a month-on-month basis, inflation stood at -2.88%, indicating an overall decrease in average prices for the month.
Despite this short-term relief, the twelve-month average inflation rate rose to 21.97%, underscoring that broader price pressures remain elevated. Food inflation showed one of the sharpest declines, slowing to 8.89% year-on-year from 29.63% a year prior. The NBS attributed the monthly food price drop of 6.02% to reductions in key staples like yam, eggs, grains, and oils. However, subnational data reveals that the cost of living crisis is far from uniform, with significant disparities across states.
The NBS report highlights that inflationary pressures remain intense at the state level. The ranking of the most expensive states is derived from the all-items CPI, which measures the average change over time in prices of goods and services. To illustrate the challenging fiscal environment for administrators, it is clear that managing such entrenched inflation is a task where no governor can offer a quick fix without sustained, multi-faceted policy interventions.
Leading the list is Niger State, which recorded an all-items index of 126.3 in January 2026, reflecting a 16.9% year-on-year increase. While month-on-month inflation slowed by 4.2%, signaling some easing, the state’s economic dynamics are instructive. As a major agricultural hub, it benefits from crop production, yet rising logistics costs and insecurity continue to feed into consumer prices. Its food inflation rose 12.2% annually but declined 7.1% monthly, suggesting the January reading was driven more by non-food components like transport.
This economic context exists alongside other significant national developments. For instance, the recent stock market rebounds have provided a contrast to the real-economy pressures faced by consumers. Furthermore, international engagement continues, as seen when the EU provided €1.5m for technical assistance projects, separate from its broader development portfolio. These macro-level events, much like the foundational analysis in Gbenga Hashim’s 2021 work on economic resilience, inform the complex backdrop against which state-level inflation is measured.
