Nigeria’s Top 10 Most Expensive States in 2024

For many Nigerians, the rising cost of living is a constant challenge. This reality becomes even more pronounced in certain parts of the country.

Here at Digiwallet, we understand the importance of financial literacy and informed decision-making.

So, we’re going deep into the top 10 most expensive states to live in Nigeria for 2024.

This blog post will provide a comprehensive analysis, using easy-to-understand language.

We’ll explore the factors driving inflation in these states, the impact on everyday expenses, and considerations for those contemplating a move.

Understanding Inflation

Inflation is the general increase in prices of goods and services over time, it is a key indicator of a state’s expensiveness.

The National Bureau of Statistics (NBS) in Nigeria releases monthly inflation data, measured by the Consumer Price Index (CPI).

This data helps us identify states where the cost of living is rising faster than the national average.

Top 10 Most Expensive Nigerian States (as of April 2024):

1. Kogi State: Retaining its top spot, Kogi boasts the highest all-item inflation rate of a staggering 40.84% (April 2024). This means the cost of essentials like food, transportation, and housing has risen significantly compared to the previous year.
2. Bauchi State: Following closely behind is Bauchi with an inflation rate of 39.91%. This state has consistently ranked high in terms of living expenses.
3. Oyo State: Oyo has climbed the ranks, with its inflation rate reaching 38.37%. This state’s proximity to Lagos, the country’s commercial hub, likely contributes to its higher cost of living.
4. Akwa Ibom State: Resource-rich Akwa Ibom comes in at number four with an inflation rate of 38.12%. While the state benefits from oil production, factors like infrastructure gaps and transportation costs can contribute to inflation.
5. Ebonyi State: This southeastern state experiences an inflation rate of 37.89%. Here, the high cost of food items significantly impacts overall expenses.
6. Rivers State: Rivers State, another oil-producing region, faces an inflation rate of 37.54%. Similar to Akwa Ibom, infrastructural challenges may play a role in driving up costs.
7. Abia State: Bordering Akwa Ibom, Abia State grapples with an inflation rate of 37.21%. Geographical proximity to a more expensive state and transportation costs are potential contributing factors.
8. Ondo State: Ondo State’s inflation rate sits at 37.09%. While the reasons are multifaceted, factors like agricultural production disruptions and security concerns might be at play.
9. Osun State: The inflation rate in Osun State is 36.82%. The state’s reliance on imported goods and transportation costs could be contributing factors.
10. Lagos State: Despite being the commercial center, Lagos surprisingly falls to the tenth spot with an inflation rate of 36.47%. This could be due to a larger and more diverse economy compared to other states on the list.

Why are These States Expensive?

Several factors contribute to inflation in these states. Here’s a breakdown of some key drivers:

• Food Price Inflation: Disruptions in agricultural production due to security challenges, climate change, and logistical bottlenecks can significantly impact food prices.
• Transportation Costs: The rising cost of fuel and transportation can inflate the prices of goods as they move from producers to consumers.
• Infrastructure Deficits: Lack of proper infrastructure like storage facilities and transportation networks can lead to inefficiencies and price hikes.
• Security Concerns: Insecurity in certain regions can disrupt economic activity, leading to shortages and price increases.
• Population Growth: Rapid population growth can put a strain on resources, driving up demand and consequently, prices.

Impact on Everyday Life

The high inflation rates in these states translate to a significant increase in everyday expenses. Here’s a look into how it might affect residents:

• Cost of Food: Essential food items like rice, beans, and cooking oil become more expensive, impacting household budgets.
• Housing Costs: Rents and property prices can rise rapidly, making it harder to find affordable housing.
• Transportation Costs: Commuting expenses, including public transport fares and fuel prices, can significantly increase.
• Healthcare Costs: Medical care can become more expensive, posing a challenge for those requiring regular medication or treatment.

Considerations When Moving to These States

If you’re considering a move to one of these states, here are some crucial factors to keep in mind:

• Cost of Living: Research the current inflation rate and typical costs for housing, food, transportation, and other essentials. Compare these costs to your current location and income to gauge affordability.
• Job Market: Investigate the job market in your chosen state. Look for opportunities in your field that offer competitive salaries to offset the higher living expenses.
• Security Situation: Research the security situation in different areas of the state. This is particularly important if safety is a major concern for you and your family.
• Lifestyle: Consider your lifestyle preferences. If access to specific amenities or a vibrant social scene is important, factor that into your decision.
• Financial Planning: Create a realistic budget that takes into account the higher cost of living. Explore ways to save money, such as cooking at home or utilizing public transportation whenever possible.

Tips for Managing Expenses

Here are some additional strategies to manage your finances in a state with a high cost of living:

• Utilize Digiwallet: Take advantage of digital payment solutions like Digiwallet. This allows you to manage your finances efficiently, track spending, and potentially benefit from features like budgeting tools and cashback rewards.
• Shop Locally and Seasonally: Supporting local farmers’ markets and buying seasonal produce can help you save money on groceries.
• Negotiate Rent: Don’t be afraid to negotiate rent, especially if you’re a long-term tenant. Research the average rental prices in your area to strengthen your bargaining position.
• Explore Alternative Transportation: Consider carpooling, cycling, or using public transportation to reduce transportation costs.
• Utilize Free Activities: Many cities and towns offer free or low-cost activities like visiting museums on designated free days or exploring parks and recreational areas.

Conclusion

Understanding the cost of living in different Nigerian states is crucial for making informed decisions about where to live and work.

This blog post has provided insights into the top 10 most expensive states in Nigeria and the factors driving inflation in those regions.

While these states may present challenges, careful planning, budgeting, and utilizing resources like Digiwallet can help you manage your finances effectively.

Remember, the most expensive state isn’t necessarily the best or worst fit for everyone.

Consider your priorities, financial situation, and desired lifestyle when making your decision.