Nigeria’s economic landscape is facing formidable challenges, characterized by surging living costs, which have soared to levels not seen before.
The nation’s inflation rate, a pivotal factor in shaping the cost of living, has climbed to a staggering 28.92% – the highest in 21 years.
This inflationary trend is not uniform across the country, with varying impacts felt in different regions.
A detailed examination of the latest National Bureau of Statistics (NBS) report sheds light on the primary causes of this inflation surge.
It highlights the significant role of escalating food prices, which have been compounded by security issues in agricultural areas and increasing transportation expenses, along with other contributing factors.
In this context, it becomes essential to focus on the NBS’s December 2023 data, which identifies the top 10 states in Nigeria where the cost of living is at its highest.
This information is crucial for understanding the economic pressures faced by Nigerians in different parts of the country.
10. Ebonyi
Ebonyi holds the 10th spot on the list, showcasing an all-items inflation rate of 31.1%, a slight uptick from November’s figures of 28.7%.
Notably, the food inflation rate surged to 35.74%, marking a substantial increase from 34.2%, highlighting the heightened costs of food items in the state.
9. Akwa Ibom
Like Ebonyi. Akwa Ibom has an all-item inflation rate of 31.1%. A comparison with November figures reveals an increase from 30.7%.
Furthermore, the food inflation in the state stands at 37.4%, reflecting a marginal rise from 37.2%. Also, while Akwa Ibom and Ebonyi have similar all-item inflation rates, food is more expensive in Akwa Ibom.
8. Ogun
Ogun entered the ranking in December at the 8th position, reporting an all-item inflation rate of 31.3%, up from November’s 30.2%.
The food inflation rate stands at 38.6%, a substantial jump from 35.5% in November, underscoring the pivotal role of food in driving inflation in Ogun State.
7. Oyo
Oyo State takes the 7th position as all-item inflation stands at 31.3%. However, this still represents a significant increase from November’s 31.4%.
Also, the food inflation in the state is at 34.3%, higher than the 33.3% recorded in November, emphasizing the significant role of food prices in the state’s inflation dynamics.
6. Abia
Also, on the list is Abia in the 6th position with an all-items inflation rate of 31.3%, a notable increase from 29.3% in November. Food inflation shows an increase from 35.0% in November to 37.2%.
5. Bauchi
Ranking 5th on the list is Bauchi, with a 31.6% inflation rate, an increase from the 30.3% recorded the previous month.
The food inflation, however, is lower at 27.5%, but a slight increase from November’s 26.1%, suggesting that food may not be a major driver of inflation in this state.
4. Bayelsa
Bayelsa State also makes the list with an all-items inflation rate of 32.0%, an increase from 29.2% recorded in November 2023.
Food inflation picks up at 38.4%, a notable uptick from November’s 35.0%, indicating a growing trend of increased living expenses, especially related to food.
3. Rivers
Maintaining the 3rd spot is Rivers State, reporting an all-items inflation rate of 32.1%, marking a slight decrease from November’s 32.2%.
Notably, the food inflation rate has reduced to 38.6%, compared to November’s 40.2%.
2. Lagos
Lagos emerges as the 2nd most expensive state for the second time, with an all-items inflation rate of 32.3% as the previous month.
The food inflation rate is 39.3%, showing a slight increase from November’s 39.2%.
1. Kogi
As usual, Kogi tops the chart as the most expensive state in Nigeria in December 2023. It recorded an all-items inflation rate of 35.6% from 33.3% in November of the same year.
Also, the food inflation rate surged to 44.7%, a considerable increase from the previous month’s 41.3%. This underscores the significant role of food in driving overall inflation in Kogi.
More Insights
- The purchasing power of consumers in Nigeria is diminishing rapidly, plunging numerous families deeper into poverty. This is particularly concerning as Nigerians are bracing for even higher food costs, with food inflation soaring to a staggering 33.93%. Food prices have been on a relentless upward trajectory, consistently recording double-digit inflation.
- These developments underscore the harsh economic reality facing Nigerians, especially those in the lower-income groups. The escalating cost of living, driven largely by food inflation, is exerting significant financial strain on households across the country.
