adplus-dvertising
Business News

Top 10 most affordable states to live in Nigeria – June 2025 ranking  

The National Bureau of Statistics (NBS) has announced that Nigeria’s headline inflation rate has declined slightly to 22.22% in June 2025, down from 22.97% recorded in May 2025.

This was disclosed in the NBS’ June 2025 Consumer Price Index (CPI) report released on Wednesday.

The 0.75 percentage point drop indicates a modest slowdown in the rate of rising consumer prices across the country.

The report, which tracks the average change in prices of goods and services—including both food and non-food items—also highlights the states with the highest and lowest all-items inflation rates, offering insight into regional cost-of-living disparities.

Below is a breakdown of the 10 states with the lowest inflation rates in June 2025, according to the NBS:

Ogun State, located in Nigeria’s South-West region, recorded an annual inflation rate of 20.6% in June 2025, a decline from 23.4% in May, according to data from the National Bureau of Statistics (NBS).

Similarly, the state’s food inflation dropped to 25.4% in June, down from 26.5% the previous month.

In response to the rising cost of living and to boost local food production, the Ogun State Government has introduced several agricultural policies and interventions. Notably, Governor Dapo Abiodun announced a ₦5 billion intervention fund aimed at cushioning the impact of inflation on residents.

As part of the initiative, food palliatives—including rice and other staple items—will be distributed to an estimated 300,000 households across the state.

In addition, the governor recently launched a large-scale rice farm in Magboro, Obafemi Owode Local Government Area. The farm covers 200 hectares and engages 200 farmers, with a projected yield of seven metric tons per hectare—translating to an estimated 1,400 metric tons of milled rice per production cycle.

These efforts, the government says, are designed to strengthen food security and reduce inflationary pressures through increased local production.

Edo State, in Nigeria’s South-South region, recorded an annual inflation rate of 20.4% in June 2025, down from 26.0% in May, according to the latest figures.

However, food inflation in the state rose to 23.6% in June, compared to 19.4% recorded in May.

To address rising food costs and stimulate agricultural productivity, Governor Monday Okpebholo announced in March 2025 that his administration had allocated N70 billion to enhance agricultural activities across the state.

Earlier, the state government launched the Back to Farm Initiative, a programme aimed at developing large farmlands across the three senatorial districts to promote large-scale farming and improve yields.

These interventions are part of the government’s broader strategy to mitigate the effects of inflation and improve food security for residents.

These interventions are part of the government’s broader strategy to mitigate the effects of inflation and improve food security for residents.

Jigawa State, located in the North-Western region of Nigeria, recorded an annual inflation rate of 19.6% in June 2025, down from 25.4% in May. The state’s food inflation rate also dropped significantly to 15.5%, from 25.4% in the previous month.

In recent months, the state government has implemented several measures aimed at curbing inflation. One such initiative is the distribution of bio-fortified and climate-resilient seeds to no fewer than 30,000 smallholder farmers across the 27 local government areas of Jigawa. The initiative is designed to combat malnutrition and enhance food security.

Speaking at the flag-off ceremony in June, Jigawa State Governor Umar Namadi described the climate-resilient and bio-fortified seeds as a “double-edged sword” that addresses both food security and climate change. According to him, the seeds are genetically enhanced to withstand changing weather conditions while naturally providing the essential nutrients needed for healthy growth in humans.

Jigawa is also one of the beneficiaries of the £204 million United Kingdom-funded Foreign, Commonwealth & Development Office (FCDO) programme for climate-resilient agricultural market development in Nigeria. The programme aims to transform rural economies, raise incomes for smallholder farmers and SMEs, and ultimately reduce poverty, conflict, and carbon emissions across the country.

Gombe State, located in Nigeria’s North-East geo-political zone, recorded a headline inflation rate of 18.7% in June 2025, slightly down from 19.1% in May. However, food inflation in the state rose to 22.1% in June, up from 18.0% the previous month.

Like Jigawa, Gombe is also a beneficiary of the £204 million United Kingdom-funded Foreign, Commonwealth and Development Office (FCDO) programme for climate-resilient agricultural market development in Nigeria.

As part of efforts to boost livestock production and enhance food security, Governor Inuwa Yahaya recently announced a N50 billion water canalisation project. The initiative will channel water from the River Gongola to the Wawa-Zange Grazing Reserve, directly benefiting over one million pastoralists and indirectly impacting more than five million people.

Analysts point to rising food prices—largely driven by climatic factors—as the key contributor to the state’s headline inflation, despite recent improvements in the overall security situation.

Ondo State, located in Nigeria’s South-West region, ranks among the most budget-friendly states in the country. According to the National Bureau of Statistics (NBS), the state recorded an annual inflation rate of 18.2% in June 2025, down from 18.9% in May.

However, food inflation in Ondo rose to 17.8% in June, up from 14.5% in May, reflecting pressures in the cost of food items.

Governor Lucky Aiyedatiwa has consistently reaffirmed his administration’s commitment to large-scale farming. In particular, the government is supporting two private mechanised farms—SAO Agro Farms and JB Farms Limited—both operating in partnership with the state government and located in Ore, the headquarters of Odigbo Local Government Area.

Analysts suggest that the rise in food inflation may be linked to a combination of factors, including ongoing security challenges in rural communities, constraints on smallholder agriculture, and the commencement of the planting season—all of which may have disrupted food supply chains and contributed to the inflationary pressure in June.

Katsina State dropped from being the state with the lowest inflation rate in May to fifth position in June 2025. The state recorded an annual inflation rate of 17.5% in June, up from 16.2% in May.

Despite this increase, Katsina maintained one of the lowest food inflation rates in the country, at just 6.2% in June—slightly down from 6.9% in May—making it one of the most affordable states for food prices.

In May, Governor Dr. Dikko Umar Radda launched the distribution of 20,000 metric tons of fertiliser for the 2025 wet season farming cycle. He announced that farmers would receive high-quality fertiliser at a subsidised rate of N20,000 per bag, aimed at boosting crop yields and farmer incomes.

Additionally, the federal government approved a N25 billion intervention fund for the newly commissioned Katsina Agricultural Mechanized Centre, further strengthening the state’s agricultural infrastructure.

Katsina’s relatively low food inflation, combined with proactive policies and investments in agriculture, have contributed to its status as one of the most affordable states to live in as of June 2025.

Adamawa State, located in North-East Nigeria, recorded an annual inflation rate of 16.9% in June 2025, down from 18.2% in May. The state also reported a 10.9% annual food inflation rate in June, a decline from 13.0% in May, although month-on-month food inflation rose by 2.8%, according to NBS data.

Governor Ahmadu Fintiri has implemented several initiatives aimed at boosting food security in the state. Recently, he launched a $525,000 World Bank agricultural intervention project to support farmers, enhance food production, and address the impacts of climate change.

Governor Fintiri also urged the Federal Government to undertake the desilting of the River Benue to facilitate international water transport, improve irrigation, and stimulate economic activity in the region.

The significant drop in non-food prices contributed to Adamawa being considered one of the most economically livable states in Nigeria in June 2025.

Sokoto, in the North-West, emerged as one of the most affordable northern states with an inflation rate of 15.8% in June 2025, compared to18.5% in May.

The state recorded a 15.3% in food inflation in June 2025, a reduction from 27.6% in May, which is high for a largely agricultural state.

As part of measures to boost food security across the state and control inflation, the Governor of Sokoto State, Ahmed Aliyu Sokoto, recently converted the early June salary payment to a three-month loan for civil servants. This was done to ease the financial burden of the Sallah festivities while also allowing the state government to maintain financial stability.