Search Articles

Home / Articles

Rising Food price, Consumption inequality and Welfare status of Agricultural households in Nigeria

. Ogunniyi, L.T. & Fanifosi, G.E and Akanmu, A.A


Abstract

Food price change and Consumption inequality can hamper livelihood outcomes, hurt social cohesion, sometimes fuel conflicts and frustrate efforts of social intervention programme. Therefore, it pulses intricacies to achieve the SDGs. The study with distinctive preferences aimed at evaluating the heterogeneous effects of food price changes, consumption inequality and households’ welfare in Nigeria, assessing whether consumption inequality reduces with change in food price and if there is improvement in households’ welfare status with these effects. Data from the National Bureau of Statistics (NBS) with appropriate methodology was used to elicit the needed information that provoke promotion of adequate welfare policy in Nigeria. The Gini coefficient was found to be between 0.374 and 0.426, with the minimum in the first quintile and the maximum in the fifth. It is evident that consumption inequality is higher among the lowest income households than high income households. Gini index negatively related to welfare status. Also, age with positive relationship depicted increase in likelihood of welfare status with increase in age. Results show that bigger households are more likely to be poor than smaller households.  The coefficient of household size shows reduction in the chances of improved welfare status of the households. Conclusively, rising food price has become a subject of worries, as it widens consumption inequality gap, hurt social cohesion and invariably affect the livelihood outcome of most agricultural households.

Keywords: Consumption, Gini index, sub-Sahara Africa, SDGs, Quintile

Download :