Despite a notable moderation in Nigeria’s overall inflation, cost-of-living pressures remained high in many states across the federation by December 2025.
According to the latest CPI report from the National Bureau of Statistics, Nigeria’s headline inflation eased sharply to 15.15% in December 2025 following methodological changes in how inflation is measured a significant drop from the much higher rates recorded throughout 2024.
Nairametrics The CPI stood at 131.2 points in December, up from 130.5 in November, indicating that average prices continue to rise but at a slower pace. Food inflation also improved, falling to 10.84% year-on-year, and even declining month-on-month by 0.36%.
However, state-level data show that non-food costs — such as housing, transport, utilities, and services now play a stronger role than food prices in driving where living costs are the highest.
📊 Top 10 Most Expensive States (All-Items Inflation)Year-on-Year Inflation (December 2025)RankState
1Abia19.0%
2Ogun18.8%
3Katsina18.7%
4Abuja (FCT)18.0%
5Lagos17.5%
6Yobe17.2%
7Borno17.0%
8Enugu17.0%
9Ekiti16.9%
10Cross River16.9%
Key Highlights:Abia State tops the list as the most expensive state to live in Nigeria for December 2025, with an inflation rate of 19.0%, making daily expenses higher relative to other states.
Ogun and Katsina follow closely, indicating higher cost pressures beyond the major urban hubs.
Lagos, traditionally known as Nigeria’s commercial capital with steep housing and services costs, remains among the top five.
Some northern states like Yobe and Borno also feature prominently, highlighting regional diversity in living cost pressures.
What This Means for ResidentsThe shift in the CPI methodology which now places more weight on non-food expenses means that transport, housing, utilities, healthcare, and services are increasingly influencing cost-of-living rankings.
Even though national inflation figures have eased, many households still face significant price pressures, especially where non-food costs are high.
The December data suggest that urban and economically active states generally remain costlier to live in than more rural or economically subdued ones.
Image Credit: Nairametrics
Source : Nairametrics
