Lagos State has emerged as the most expensive place to live in Nigeria in June 2026, according to the latest cost of living index released by the National Bureau of Statistics (NBS). The index, which measures the relative cost of essential goods and services including housing, transportation, food, and utilities, placed Lagos at 89.2 points, significantly higher than the national average of 48.6.
Top 10 Most Expensive States
The NBS report, published on July 16, 2026, lists the following states as the top 10 most expensive to reside in:
- Lagos – 89.2
- Abuja (FCT) – 82.5
- Rivers – 76.8
- Bayelsa – 71.4
- Delta – 68.9
- Akwa Ibom – 65.3
- Edo – 62.1
- Ogun – 59.7
- Kano – 57.4
- Kaduna – 55.6
Key Drivers of High Cost
The NBS attributed the high cost in these states to several factors, including high demand for housing, elevated transportation costs, and the price of imported goods. “Housing rent accounts for the largest share of household expenditure in these states, particularly in Lagos and Abuja where a one-bedroom apartment in a decent neighborhood costs between ₦1.5 million and ₦3 million annually,” the report stated.
In Lagos, the cost of transportation also spiked due to the removal of fuel subsidies and the subsequent increase in petrol prices. Commuters now spend an average of ₦50,000 monthly on transportation, according to the NBS.
Regional Disparities
The report highlights significant regional disparities, with states in the South-South and South-West dominating the top 10. Only two northern states, Kano and Kaduna, made the list, reflecting lower living costs in other northern regions. For instance, states like Yobe and Zamfara recorded the lowest cost of living indices at 32.1 and 34.8 respectively.
The NBS noted that the cost of food items also varied widely. In Lagos, a basket of staple foods – including rice, beans, yam, and tomatoes – costs about ₦45,000, compared to ₦28,000 in Yobe.
Implications for Residents
The high cost of living in these states is putting pressure on household budgets. “Many residents are forced to allocate over 70% of their income to basic necessities, leaving little for savings or investment,” said economist Dr. Adebayo Olusegun. He added that the trend could lead to increased migration to more affordable states if not addressed.
The NBS recommends that state governments focus on improving infrastructure, reducing transportation costs, and boosting local food production to mitigate the high cost of living.
