Nigeria’s Inflation Crisis Deepens Unevenly as Borno Emerges as Most Expensive State to Live In

 

A fresh report by the National Bureau of Statistics (NBS) has spotlighted the states in Nigeria facing the most severe inflationary pressures as of May 2025. Although the country’s overall inflation rate saw a slight reprieve, the impact remains deeply felt in many states, particularly those grappling with insecurity and supply chain challenges.

Headline inflation slowed to 22.97% in May, down from 23.71% in April, signaling a nationwide easing in price increases. This deceleration is more striking when viewed against May 2024’s figure of 33.95%, representing a substantial drop of nearly 11 percentage points year-on-year. Month-on-month inflation also cooled, dropping from 1.86% in April to 1.53% in May, suggesting a mild slowdown in the speed at which consumer prices are rising.

Still, not all states experienced this relief equally.

Borno State, ravaged by years of conflict and displacement, posted the highest cost-of-living increase with a staggering 38.9% year-on-year inflation rate. Month-on-month inflation also surged by 4.4%, while food inflation—typically the most immediate pressure point for households—exploded to 64.4% year-on-year. The scale of food inflation in Borno paints a grim picture of economic fragility, as insecurity continues to disrupt farming and obstruct supply routes, leaving consumers at the mercy of scarcity-driven pricing.

Close behind is Niger State, where the inflation rate reached 35.0% annually and 3.5% monthly. Food inflation hit 30.3% year-on-year, though May’s 0.2% monthly rise suggests some price stabilization in the short term. Nonetheless, persistent issues like fuel scarcity, logistical constraints, and lingering insecurity are making essentials more expensive for residents.

Plateau State ranked third, recording 32.3% headline inflation year-on-year. Interestingly, food prices in the state declined slightly in May, showing a 1.7% month-on-month drop. This contrasts with the broader inflation narrative and suggests that non-food categories—such as health, education, or housing—are primarily responsible for the elevated cost of living.

The Federal Capital Territory, Abuja, was not spared either. With a headline inflation rate of 31.1% year-on-year, the capital saw modest relief in general prices, posting a -0.1% decline on a month-to-month basis. However, food inflation remained a serious concern, spiking 6.4% within the same period. Abuja’s reliance on food supplies from neighbouring states makes it particularly sensitive to regional supply disruptions and rising transport costs.

Oyo State, known for its commercial vibrancy, recorded a 28.9% inflation rate year-on-year. However, it experienced a 0.8% monthly drop in overall inflation and a minor food deflation of -0.1%. These figures suggest the state may be benefitting from improved food distribution or targeted price control interventions.

Further north, Nasarawa State posted a 27.4% inflation rate, while food prices rose just 0.2% month-on-month. The near-stable food prices contrast with a longer-term inflation trend, indicating that non-food essentials like energy or rent may be driving overall inflation.

In Taraba, headline inflation reached 26.5% with a 4.2% monthly spike, while food inflation stood alarmingly at 38.6% year-on-year. Agricultural bottlenecks and transport inefficiencies seem to be contributing to rapid food price hikes, affecting both rural and urban households.

Cross River State mirrored similar challenges. While its overall inflation stood at 26.1% annually, food inflation jumped by 11.1% in May alone—the highest monthly increase nationwide. Such a steep rise is a strong indicator of market volatility, possibly exacerbated by speculation and erratic supply flows.

Edo State, meanwhile, saw a slight silver lining with a 2.9% month-on-month drop in inflation, the sharpest among the top 10. Still, food prices rose 4.3% monthly, suggesting non-food categories like fuel or public transport might have seen temporary cost relief.

Benue State, a key agricultural hub, rounded out the list. With a 25.9% annual inflation rate, it registered a 3.1% monthly increase in overall prices and a 4.1% rise in food inflation. Despite its role in food production, the state continues to experience sharp price hikes, likely due to disruptions in farming and distribution linked to insecurity and weather events.

Across Nigeria, food inflation remains the primary concern. While year-on-year numbers are softening—thanks in part to the CPI’s rebasing to a 2024 base year—month-on-month figures tell a different story. Staples such as yam, cassava, maize flour, and peppers continue to climb in price, highlighting the tension between statistical relief and the reality at the market stalls.

Even as the national inflation trend appears to moderate, regional disparities tell a more complex story. States with better infrastructure, greater security, and more diversified economies are navigating the crisis more effectively, while others are left vulnerable to the twin threats of conflict and commodity shortages.

For millions of Nigerians, particularly in the northern regions, food affordability remains a daily struggle—despite the rosier headline numbers.