The marginal decline of 0.05 percentage points signals a continued easing of price pressures at the start of the year, extending the gradual slowdown observed in recent months.
The year-on-year improvement is even more pronounced. Compared to January 2025, when inflation stood at 27.61 percent, the rate has fallen by 12.51 percentage points, reflecting a significant moderation in overall price growth across the country.
While national figures provide a broad overview of economic trends, cost-of-living conditions differ considerably across states.
Based on state-level inflation data, the following are the Top 10 most affordable states to live in January 2026, ranked by lowest headline inflation rates and reflecting relative stability in essential goods and services.
10. Gombe — 13.74% (Food inflation: 8.8%)
Gombe State ranks tenth among Nigeria’s most affordable states, despite posting a relatively elevated food inflation rate of 8.8 percent — an improvement from the 10.1 percent recorded in December 2025.
The state’s overall inflation rate stands at 13.74 percent, which is still below the national average and points to moderate price stability across non-food components such as housing, transportation, and services.
However, this represents an increase from the 11.3 percent recorded in December 2025.
Under the leadership of Governor Muhammadu Inuwa Yahaya, the state government has rolled out a number of measures aimed at curbing inflation and easing economic pressure on residents.
These efforts focus on fiscal prudence, expanded agricultural support, and infrastructure development, as outlined in the 2026 “Budget of Consolidation.”
To address rising food costs, the government is strengthening the agricultural sector through the distribution of modern farming implements, improved seedlings, and livestock to boost productivity and supply.
The 2026 budget also makes provisions for social protection programmes and citizen reorientation initiatives designed to cushion the impact of ongoing economic reforms.
A major highlight of the budget is the N12 billion allocation to a regional security fund — equivalent to a N1 billion monthly contribution — in line with resolutions reached by the Northern States Governors’ Forum.
9. Delta — 13.58% (Food inflation: 6.6%)
Delta State recorded a headline inflation rate of 13.58 percent, representing a decline from the 15.6 percent posted in December 2025. Food inflation also eased significantly to 6.6 percent, down from 12.5 percent in December 2025 — a trend that suggests relatively stable agricultural supply chains and improved market distribution across the oil-producing state.
In response to inflationary pressures, the state government led by Governor Sheriff Oborevwori has implemented a range of measures between 2024 and 2026 aimed at cushioning residents and strengthening the local economy.
These interventions focus on boosting purchasing power, supporting small businesses, and sustaining infrastructure development despite rising costs.
As part of its economic support strategy, the government recently partnered with the Bank of Industry to establish a N1 billion revolving fund for Micro, Small, and Medium Enterprises (MSMEs). The facility is designed to provide affordable financing, stimulate enterprise growth, and reduce the cost of doing business in the state.
Additional initiatives include the rollout of the second phase of the Delta State Youth Empowerment Programme (ICT-YEP), benefiting 575 participants, as well as expanded agricultural support through the distribution of inputs to more than 6,020 farmers to further strengthen food production.
8. Ondo — 13.20% (Food inflation: 5.5%)
Ondo State recorded a headline inflation rate of 13.20 percent, rising from 10.1 percent in December, while food inflation moderated to 5.5 percent, down from 11.1 percent. The relatively lower food inflation rate is attributed to strong local agricultural output, particularly in cocoa and other staple crops, which continues to help stabilize consumer prices.
The state government, led by Governor Lucky Aiyedatiwa, has introduced a series of fiscal, agricultural, and economic interventions aimed at easing the cost of living and containing inflationary pressures.
These measures are anchored in the 2025 “Budget of Recovery” and the proposed N524 billion 2026 budget framework.
A major focus of the 2026 budget is expanding input financing, farm mechanisation, and irrigation systems to boost yields, reduce post-harvest losses, and further lower food prices across the state.
In addition, the government is collaborating with the International Fund for Agricultural Development to empower about 14,800 youths through agriculture-focused programmes designed to increase production and strengthen the state’s food value chain.
7. Ogun — 12.86% (Food inflation: 7.9%)
Ogun State recorded a headline inflation rate of 12.86 percent, a sharp decline from 18.8 percent in December. Food inflation, though still moderately elevated at 7.9 percent, also dropped from 14.1 percent in December. The state’s proximity to Lagos and its strong industrial and commercial base are helping to sustain relative price stability in housing, transportation, and other services.
The state government, led by Governor Dapo Abiodun, has rolled out a series of targeted interventions aimed at reducing the cost of living and cushioning residents against inflationary pressures, with particular emphasis on food security and transportation.
Among the key measures is the planned sale of 100 truckloads of rice to residents at a 50 percent discount, with special allocations reserved for elderly and vulnerable groups.
The government has also introduced market price control measures and prohibited all levies in markets except approved environmental and development charges, in order to eliminate illegal fees on food items. A dedicated market enforcement task force has been set up to ensure compliance.
In addition, the rebranded Gateway Trading Company will operate across four zones of the state to bulk-purchase essential food commodities and resell them to the public at reduced prices.
To further support small businesses, the governor in December 2025 approved the disbursement of an additional N250 million in grants to trade artisans across the state.
6. Abia — 11.67% (Food inflation: 3.2%)
Abia State recorded one of the lowest food inflation rates in the country at 3.2 percent, a significant drop from 10.2 percent in December. This sharp moderation in food prices helped pull the state’s overall inflation rate down to 11.67 percent from 19 percent recorded in December, offering notable relief to households, especially low-income earners.
In January 2026, the Abia State Government indicated that it is prioritising the development of a comprehensive industrial policy aimed at accelerating industrial growth and strengthening the state’s productive base. The proposed policy framework is expected to support manufacturing, enterprise development, and value-added industries.
As of now, there is limited publicly available information detailing specific new anti-inflation or cost-of-living intervention measures recently introduced by the state government.
5. Kaduna — 11.41% (Food inflation: 5.1%)
Kaduna State recorded a headline inflation rate of 11.41 percent, up slightly from 10.4 percent in December. In contrast, food inflation eased to 5.1 percent from 11.3 percent, reflecting improved food supply conditions. As a major agricultural and commercial hub in northern Nigeria, the state appears to be benefiting from stronger farm output and distribution networks.
The state government, led by Governor Uba Sani, has rolled out multiple interventions across 2025 and early 2026 to reduce economic pressure on residents and support vulnerable groups. These measures target transportation costs, agricultural productivity, wages, and financial inclusion.
One of the flagship initiatives is a free public transportation programme using Compressed Natural Gas (CNG)-powered buses, introduced in December for an initial six-month period to cushion the effect of rising transport fares on students, workers, and low-income earners.
The scheme was later extended, and records show that more than 1.4 million passengers were transported between July and November 2025.
To strengthen food production and moderate prices, the government also distributed 500 truckloads of fertilizer. About 240,000 bags were supplied to 120,000 smallholder farmers at a 40 percent subsidy, helping to lower production costs and improve output across the state.
4. Enugu — 11.04% (Food inflation: 5.8%)
Enugu State recorded an inflation rate of 11.04 percent, down from 17 percent in December, ranking it fourth among the lowest-inflation states. Food inflation also declined to 5.8 percent from 10.7 percent in December, indicating relatively moderate pressure on essential commodities and improved affordability for residents.
The state government, led by Governor Peter Mbah, has introduced a range of anti-inflation and cost-of-living measures centred on increased food production, infrastructure expansion, and fiscal reforms.
As part of its agricultural strategy, the government has invested in large-scale farming initiatives, including the rollout of a modern ranching system and the deployment of 200 tractors to support mechanised agriculture and boost food supply, with the goal of lowering market prices.
On the fiscal side, the state enacted the 2025 Enugu State Internal Revenue Service law to eliminate multiple and illegal taxation that weighs on small businesses. Under the reform, land rates were reduced by 60 percent, while duplicative and unauthorized levies on businesses were formally prohibited.
3. Imo — 10.61% (Food inflation: 3.7%)
Imo State recorded a headline inflation rate of 10.61 percent, down from 13.8 percent in December. Food inflation also declined markedly to 3.7 percent from 8.3 percent over the same period. The relatively mild price growth across both food and non-food categories places the state among the more affordable in the country.
Governor Hope Uzodimma approved an increase in the state minimum wage to N104,000 for civil servants, up from the previous N70,000. Announced in August 2025 and implemented from September 2025, the wage adjustment is aimed at improving worker welfare and cushioning the effects of economic hardship across multiple salary structures.
The state government has also proposed a N1.4 trillion budget for 2026 — about a 78 percent increase over the 2025 figure — with a strong focus on infrastructure expansion and broader economic stimulation to support growth and price stability.
2. Katsina — 8.94% (Food inflation: 5.8%)
Katsina State recorded a single-digit headline inflation rate of 8.94 percent, down sharply from 18.7 percent in December and significantly below the national average. Food inflation also eased to 5.8 percent from 11.2 percent, helping to keep overall consumer prices relatively stable across the state.
The state government, led by Governor Dikko Umar Radda, has adopted a multi-pronged strategy to contain inflation and reduce cost pressures, with strong emphasis on agricultural productivity, security, and economic empowerment.
A key initiative is the establishment of the Katsina State Agricultural Promotion Agency to link farmers with markets and financial services. The programme supports large-scale mechanisation, farm input distribution, and irrigation development, including a N14 billion water project in Faskari Local Government Area aimed at expanding irrigated agriculture.
In addition, the government is implementing a 2024–2034 inclusive economic policy framework designed to generate up to 300,000 jobs annually. Authorities have also been advancing citizen-driven budget planning processes ahead of the 2026 fiscal year to ensure spending priorities align more closely with local economic needs.
1. Ebonyi — 8.72% (Food inflation: 1.7%)
Ebonyi State tops the list of most affordable states, recording the lowest headline inflation rate of 8.72 percent, down from 14.9 percent in December.
Food inflation was exceptionally low at 1.7 percent, down from 9.7 percent, reflecting the state’s strong agricultural base—particularly in rice and other staple crops—which has helped shield households from broader price pressures.
The state government, led by Governor Francis Nwifuru, has implemented a range of measures to curb inflation and ease the cost of living. These include increasing the minimum wage, providing substantial food price reduction initiatives, and distributing welfare bonuses to improve purchasing power.
Key interventions include targeted agricultural support, the recruitment of 1,700 civil servants, and investment in rural infrastructure to stimulate local economic activity. In December, the government announced a N150,000 bonus for workers. Additional measures included a Christmas bonus for state employees and specific allowances for local government staff, all designed to enhance income and maintain household affordability.
What This Means for Residents
The decline in national inflation, combined with relatively lower state-level inflation in these regions, suggests improving purchasing power and reduced cost-of-living pressures for households in early 2026.
States with low food inflation in particular are seeing stronger affordability gains, as food remains the largest component of household spending in Nigeria.
If the current trend continues, further moderation in prices could support consumer confidence, business expansion, and broader economic stability across the country in the months ahead.
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