Taraba State has emerged as the most affordable place to live in Nigeria for July 2026, with a monthly cost of living of N142,000, according to a new report by SBM Intelligence. The report, which analyzed the cost of living across all 36 states and the Federal Capital Territory (FCT), reveals that seven of the top ten most affordable states are located in northern Nigeria, while three are in the south.
Top 10 Most Affordable States in July 2026
According to the SBM Intelligence report, the ten cheapest states to live in Nigeria as of July 2026 are:
- Taraba – N142,000 per month
- Sokoto – N144,000 per month
- Kebbi – N145,000 per month
- Zamfara – N146,000 per month
- Katsina – N147,000 per month
- Jigawa – N148,000 per month
- Kaduna – N150,000 per month
- Edo – N152,000 per month
- Ondo – N153,000 per month
- Osun – N154,000 per month
The report highlights that these states have significantly lower living costs compared to the national average, making them attractive for residents seeking to stretch their income further. The data was collected through a survey of household expenses, including food, housing, transportation, and utilities.
Regional Disparities in Living Costs
The SBM Intelligence report notes that the cost of living in northern states is generally lower due to factors such as cheaper food prices, lower rent, and reduced transportation costs. In contrast, southern states like Lagos, Rivers, and Delta remain among the most expensive, with monthly costs exceeding N250,000. The FCT, Abuja, also ranks high on the cost scale, with a monthly average of N280,000.
According to the report, the disparity is driven by differences in economic activity, population density, and infrastructure. Northern states, which are predominantly agricultural, benefit from lower food prices, while southern states with higher industrial and commercial activity face higher demand for housing and services.
Most Expensive States in July 2026
At the other end of the spectrum, the SBM Intelligence report identifies the most expensive states to live in Nigeria for July 2026. Lagos State tops the list with a monthly cost of N320,000, followed by the FCT (Abuja) at N280,000, and Rivers State at N270,000. Other costly states include Delta (N265,000), Akwa Ibom (N260,000), and Oyo (N255,000).
“The cost of living in Lagos is almost double that of Taraba, reflecting the vast economic differences across the country,” the report states. The high costs in these states are attributed to factors such as high rent, expensive transportation, and premium prices for goods and services.
Implications for Residents and Policymakers
The SBM Intelligence report underscores the growing financial pressure on Nigerians, particularly in urban centers. For residents in expensive states, the high cost of living means that a significant portion of income goes toward basic necessities, leaving little for savings or discretionary spending. The report suggests that policymakers should consider targeted interventions to reduce living costs, such as improving public transportation, increasing food production, and regulating rent prices.
In contrast, residents in affordable states like Taraba and Sokoto enjoy a lower cost burden, which could attract more people to these areas if economic opportunities improve. The report concludes that understanding these cost disparities is crucial for both individuals planning to relocate and for government officials designing economic policies aimed at improving living standards across Nigeria.
