Nigeria, the most populous country in Africa, is known for its diverse cultures, vibrant cities, and complex economy. With an inflation rate hovering around 24% as of August 2024, the cost of living has risen significantly across the country. This article explores the ten most expensive states in Nigeria to live in, considering factors such as housing, transportation, food, and general living expenses.
1. Lagos State
Lagos State, often referred to as the economic hub of Nigeria, consistently ranks as the most expensive state to live in. The state is home to Lagos city, which is the largest city in Nigeria and one of the fastest-growing urban areas in the world.
Housing: The cost of housing in Lagos is extraordinarily high, with an average two-bedroom apartment in the city center costing around ₦3 million per year. This is largely due to high demand for limited space in prime areas like Victoria Island, Lekki, and Ikoyi.
Transportation: Public transportation costs have surged, with average monthly commuting expenses for an individual around ₦50,000. The fuel scarcity and high fuel prices have exacerbated this issue.
Food and Utilities: Food prices in Lagos have increased by about 25% compared to the previous year. Basic utilities for a standard apartment can cost upwards of ₦50,000 per month.
2. Abuja (Federal Capital Territory)
Abuja, the capital city of Nigeria, is another expensive state to live in, primarily due to its status as the political and administrative center of the country.
Housing: Housing costs in Abuja are steep, with a three-bedroom apartment in the city center costing approximately ₦2.5 million per year. Areas like Maitama, Asokoro, and Wuse are particularly pricey.
Transportation: The cost of transportation is high, with the average monthly cost for an individual being around ₦40,000. The city’s layout often necessitates the use of personal vehicles, adding to expenses due to high fuel costs.
Food and Utilities: Food prices have risen by 20% in the past year. Utilities, including electricity and water, can add another ₦45,000 to monthly living costs.
3. Rivers State
Rivers State, with Port Harcourt as its capital, is a major center for Nigeria’s oil industry. This economic activity drives up living costs in the state.
Housing: The cost of living is high, with a three-bedroom apartment in Port Harcourt costing around ₦2 million per year. Areas like GRA Phase 1 and 2 are particularly expensive.
Transportation: Public transportation costs around ₦45,000 per month, influenced by the high cost of fuel and the need for frequent travel within the city.
Food and Utilities: Food prices have increased by 22%, with utilities costing around ₦40,000 monthly. The cost of living is further inflated by the high demand for goods and services driven by the oil industry.
4. Ogun State
Ogun State, located just north of Lagos, has seen a significant rise in its cost of living due to its proximity to Lagos and its role as an industrial hub.
Housing: Housing costs in areas like Abeokuta and Ota are high, with an average three-bedroom apartment costing about ₦1.8 million per year.
Transportation: The cost of commuting has increased, with monthly expenses averaging ₦35,000. The state’s industrial activities attract a lot of traffic, driving up transportation costs.
Food and Utilities: Food prices have risen by 18%, and utilities cost around ₦38,000 per month.
5. Delta State
Delta State, with its capital at Asaba, is another economically vibrant state due to its oil and gas industries. This economic activity has driven up the cost of living.
Housing: A three-bedroom apartment in Asaba can cost around ₦1.7 million per year. Warri, another major city in the state, also has high housing costs.
Transportation: Monthly transportation costs average ₦30,000, influenced by the high cost of fuel and the need for extensive travel within the state.
Food and Utilities: Food prices have increased by 19%, with utilities costing around ₦35,000 per month.
6. Anambra State
Anambra State, with its bustling commercial activities, particularly in Onitsha and Awka, has seen a rise in living costs.
Housing: Housing costs in Onitsha and Awka are high, with an average three-bedroom apartment costing about ₦1.5 million per year.
Transportation: The cost of transportation is significant, with monthly expenses around ₦28,000.
Food and Utilities: Food prices have risen by 17%, and utilities cost around ₦32,000 per month.
7. Enugu State
Enugu State, known for its coal deposits and growing economic activities, particularly in Enugu city, has also seen an increase in living costs.
Housing: A three-bedroom apartment in Enugu city costs around ₦1.4 million per year.
Transportation: Monthly transportation costs average ₦27,000.
Food and Utilities: Food prices have increased by 16%, with utilities costing around ₦30,000 per month.
8. Edo State
Edo State, with Benin City as its capital, is another expensive state to live in due to its economic activities and cultural significance.
Housing: Housing costs in Benin City are high, with an average three-bedroom apartment costing about ₦1.3 million per year.
Transportation: Monthly transportation costs are around ₦25,000.
Food and Utilities: Food prices have risen by 15%, and utilities cost around ₦28,000 per month.
9. Akwa Ibom State
Akwa Ibom State, with Uyo as its capital, has seen an increase in living costs due to its oil and gas industries.
Housing: A three-bedroom apartment in Uyo costs around ₦1.2 million per year.
Transportation: Monthly transportation costs average ₦24,000.
Food and Utilities: Food prices have increased by 14%, with utilities costing around ₦26,000 per month.
10. Ondo State
Ondo State, known for its agricultural activities, particularly in Akure, has also seen a rise in living costs.
Housing: Housing costs in Akure are high, with an average three-bedroom apartment costing about ₦1.1 million per year.
Transportation: Monthly transportation costs are around ₦23,000.
Food and Utilities: Food prices have risen by 13%, and utilities cost around ₦25,000 per month.
Conclusion
The high inflation rate in Nigeria has significantly impacted the cost of living across the country, particularly in economically vibrant states. Lagos and Abuja remain the most expensive due to their roles as economic and political hubs. The oil-producing states like Rivers and Delta also face high living costs due to their industrial activities. Proximity to Lagos influences the high cost of living in Ogun State, while commercial activities drive up costs in Anambra and Enugu. The economic and cultural significance of Edo, Akwa Ibom, and Ondo States contribute to their high living expenses.
As Nigeria continues to navigate its economic challenges, understanding the cost of living in various states can help individuals and families make informed decisions about where to live and work.