Victor Ezeja
As Nigeria battles inflationary pressure on the economy and the impact on cost of living, there are states that have relatively lower cost of living than others.
Inflation, which is the persistent rise in prices of goods and services, determines the level of cost of living in a state or country. According to the National Bureau of Statistics (NBS) latest Consumer Price Index (CPI) report, the headline inflation dropped to 32.15 per cent in August from 33.40 per cent in July 2024. The food inflation rate also reduced by 2.03 per cent to 37.52 per cent in August from 39.53 per cent in July 2024.
Join our WhatsApp ChannelIn this article, we shall highlight 10 states with lowest cost of living as of August 2024, according to NBS data on all items and food inflation rates in the month under review.
READ ALSO: Nigeria’s Inflation Rate Further Drops To 32.15%
1. Benue 25.13%
Benue which is located in the north-central part of the country has maintained its first position on the list of states with lowest cost of living in Nigeria. The all-item inflation rate decreased from 27.28 per cent in July to 25.13 per cent in August, reflecting a decrease of 2.15 per cent.
Similarly, food inflation also saw a drop from 36.41 per cent in July to 32.33 per cent in August. This shows a 4.08 per cent drop.
This reduction in both overall inflation and food inflation shows that the inflationary pressures in Benue have eased slightly.
Though maintaining the lowest food inflation rate as well, Benue which has the motto: ‘Food Basket of the nation’ is still having cases of farmer-herder conflicts and other forms of violence that affect farming activities in the state.
2. Delta 26.86%
Delta, a state in South-south, also maintained its third position as in previous month’s list of 10 states with lowest cost of living in Nigeria. The all-item inflation rate decreased from 28.06 per cent in July to 26.86 per cent reflecting 1.2 per cent drop.
Also, the food inflation rate dropped from 37.62 per cent in July to 35.39 per cent in August.
Despite the reduction in food inflation rate, it remains a major contributor to overall inflation.
3. Imo 28.05%
Imo State in South-east recorded a drop in all-item inflation rate from 29.97 per cent in July to 28.05 per cent in August. This is 1.92 per cent decrease.
Also, food inflation rate in the state saw a drop from 40.93 per cent in July to 38.59 per cent in August.
4. Katsina 28.07%
Slightly above that of Imo, Katsina, which took the fourth position in the list of states with the lowest cost of living, experienced a slight drop in all-item inflation rate from 28.65 per cent in July to 28.07 per cent. This is a decrease of 0.58 per cent.
Also, food inflation rate decreased from 38.31 per cent in July to 37.39 per cent in August.
5. Taraba 28.83%
Taraba in northeast also experienced a decrease in all-item inflation rate from 29.14 per cent in July to 28.83 per cent in August.
The food inflation rate for the state dropped from 38.98 per cent in July to 35.80 in August, indicating a 3.18 per cent drop.
The reduction in food inflation rate suggests that the cost of food is becoming more stable in the state.
6. Ogun 29.42%
Ogun State in Southwest takes the sixth position in the list of states with the lowest cost of living in Nigeria. For the all-item inflation rate, the state recorded a decrease from 31.59 per cent in July to 29.42 per cent in August, which is 2.17 per cent drop.
The food inflation rate for the state also dropped from 37.53 per cent in July to 34.19 per cent in August. This is a substantial reduction in food inflation rate, also suggesting that food cost is becoming stable in the state.
7. Borno 29.59%
Borno State saw a 0.76 per cent increase in all-item inflation rate with the rate rising from 28.33 per cent in July to 29.59 per cent in August.
Food inflation rate in the north-east state also increased slightly, moving from 40.27 per cent in July to 40.28 per cent in August, a 0.01 per cent rise.
8. Bayelsa 30.15%
Bayelsa recorded a 2.9 per cent reduction in the all-item inflation rate as the rate dropped from 33.05 per cent in July to 30.25 per cent in August.
Food inflation rate witnessed a 4.5 per cent decrease from 37.86 per cent in July to 33.36 per cent in August. This significant reduction in food inflation in the state also point to the possibility of drop in food cost.
9. Enugu 30.57%
Enugu in South-east takes ninth position in the list of states with lowest cost of living in Nigeria in August. It saw a 1.6 per cent drop in the all-item inflation rate from 32.17 per cent in July to 30.57 per cent in August.
Also, the state recorded a 3.16 per cent reduction of food inflation from 44.06 per cent in July to 40.90 per cent in August.
10. Ekiti 30.64%
Ekiti State experienced a 1.73 per cent decrease in all-item inflation rate from 32.37 per cent in July to 30.64 per cent in August.
Food inflation rate in the state reduced substantially by 4.05 per cent from 40.21 per cent in July to 36.22 per cent in August.
Victor Ezeja is a passionate journalist with seven years of experience writing on economy, politics and energy. He holds a Master's degree in Mass Communication.
