Nigeria's Inflation Declines to 15.10% in January 2026
The National Bureau of Statistics (NBS) has released new data indicating a welcome decline in Nigeria's inflation rate, providing much-needed relief for households across the country. According to the latest Consumer Price Index (CPI) report, headline inflation eased to 15.10% in January 2026, down from 15.15% in December 2025. This represents a modest decrease of 0.05 percentage points month-on-month.
More significantly, when compared year-on-year, the headline inflation rate fell dramatically by 12.51% from January 2025's rate of 27.61%. This substantial reduction signals a meaningful easing of price pressures over the past twelve months, marking an important shift toward greater macroeconomic stability.
Top 10 Most Affordable States Based on Inflation Rates
While national data provides a broad economic overview, living costs vary considerably between states. Using state-specific inflation figures, here are the ten most affordable Nigerian states to live in as of January 2026, ranked from lowest to highest headline inflation rates.
- Ebonyi State: Recorded the lowest headline inflation rate at 8.72% in January, a significant drop from 14.9% in December. Food inflation plummeted to just 1.7% from 9.7%, representing the slowest rise in food prices among all states.
- Katsina State: Posted a single-digit headline inflation rate of 8.94%, declining sharply from 18.7% in December. Food inflation eased to 5.8% from 11.2%, contributing to overall price stability.
- Imo State: Recorded headline inflation of 10.61%, compared with 13.8% in December. Food inflation declined to 3.7% from 8.3%, reflecting slower increases in essential food items.
- Enugu State: Posted an inflation rate of 11.04%, down from 17% in December. Food inflation moderated to 5.8% from 10.7%, indicating easing pressure on food costs.
- Kaduna State: Recorded headline inflation of 11.41%, slightly up from 10.4% in December. However, food inflation fell to 5.1% from 11.3%, signaling improved food price conditions.
- Abia State: Headline inflation declined to 11.67% from 19% in December. Food inflation slowed significantly to 3.2%, compared with 10.2% previously, placing it among the lowest food inflation rates nationwide.
- Ogun State: Recorded headline inflation of 12.86%, a sharp drop from 18.8% in December. Food inflation also eased to 7.9%, down from 14.1%, showing broad moderation in price growth.
- Ondo State: Posted headline inflation of 13.20%, up from 10.1% in December. Food inflation, however, declined to 5.5% from 11.1%, suggesting reduced pressure on staple food prices.
- Delta State: Recorded headline inflation of 13.58%, down from 15.6% in December. Food inflation fell notably to 6.6% from 12.5%, reflecting a slowdown in food price increases.
- Gombe State: Registered headline inflation of 13.74%, up from 11.3% in December. Food inflation eased slightly to 8.8% from 10.1%, indicating moderating food price growth despite the rise in overall inflation.
Expert Analysis on Inflation Trends
Muda Yusuf, CEO of the Centre for the Promotion of Private Enterprise (CPPE), commented on the inflation data, describing it as representing an important macroeconomic shift. According to Yusuf, the price movement has significant implications for household welfare, agricultural income sustainability, monetary policy direction, and private-sector investment strategy.
"Nigeria's inflation data for January 2026 points to a clear shift toward greater macroeconomic stability, largely driven by falling food prices and softer core inflation," Yusuf stated. "While this trend supports household purchasing power, consumer spending, and investor sentiment, it may also pose challenges for farmers' earnings and the resilience of rural economies."
Yusuf emphasized that the key policy focus should be sustaining the downward inflation trend while safeguarding agricultural output and rural incomes. "Striking this balance will be essential to converting short-term price relief into long-term economic stability, broad-based growth, and improved confidence in Nigeria's economy," he added.
Additional Economic Indicators
The NBS also reported that the average retail price of Automotive Gas Oil (AGO), commonly known as diesel, declined year-on-year in November 2025. During the review period, Niger, Jigawa, and Enugu recorded the highest diesel prices, while Kebbi, Katsina, and Nasarawa posted the lowest average retail prices nationwide.
This combination of declining inflation rates and reduced diesel prices suggests broader economic improvements that could benefit both households and businesses across Nigeria. The data indicates that targeted policy interventions and agricultural improvements have helped moderate living costs in many states, though regional variations remain significant.
