A recent report by the National Bureau of Statistics (NBS) has highlighted significant variations in the cost of living across Nigeria. The report reveals that Bauchi is the most expensive state to live in, while Benue, Delta, and Borno are the least expensive.
According to the NBS, Bauchi State tops the list with the highest inflation rate at 46.05% as of July 2024. This marks an increase from 43.95% in June 2024. Despite a decrease in food inflation, which fell from 35.09% in June to 34.35% in July, Bauchi’s overall cost of living remains the highest due to rising prices in other categories.
In contrast, Benue State is reported as the least expensive place to live, with a headline inflation rate of 27.28%. This is the lowest among the states surveyed. Delta and Borno also have relatively low inflation rates, standing at 28.06% and 28.33% respectively. These lower rates indicate that the cost of goods and services in these states is increasing at a slower pace compared to others.
The NBS report also provides insights into monthly inflation changes. Taraba, Kwara, and Ondo states recorded the smallest month-on-month inflation increases. Taraba’s inflation rose by just 0.17%, Kwara’s by 0.62%, and Ondo’s by 0.91%. These minimal increases suggest a more stable cost of living in these areas.
On the other hand, the Federal Capital Territory, Abuja, experienced the highest month-on-month inflation increase at 3.91%. Borno and Enugu followed closely with increases of 3.84% and 3.76% respectively. Residents in these areas may be facing a quicker rise in living costs.
Nationwide, Nigeria’s headline inflation rate decreased to 33.90% in July 2024. This decline is notable as it marks the first reduction in the headline inflation rate since December 2022. The previous rate was 34.19% in June. This decrease reflects a slowing down in the overall rate of price increases, signaling a potential improvement in the economic situation.
Food inflation also saw a reduction, dropping to 39.53% in July from 40.87% in June. This decrease is attributed to lower prices for essential food items such as garri and fufu, which are significant components of household expenses.
Inflation affects how much individuals and families pay for goods and services. A slower increase in inflation, as seen in states like Benue, Delta, and Borno, can make these areas more affordable for residents. Conversely, high inflation rates in states like Bauchi and Abuja mean that living costs are rising faster, which could strain household budgets and affect quality of life.
