Effects of Food Price Spikes on Household Welfare in Nigeria

ZEF-Discussion Papers on Development Policy No. 248

45 Pages Posted: 24 Apr 2018

See all articles by Adebayo Shittu

Adebayo Shittu

Federal University of Agriculture, Abeokuta

Dare Akerele

Federal University of Agriculture, Abeokuta

Mekbib Haile

University of Bonn - Center for Development Research (ZEF)

Date Written: February 2018

Abstract

The dramatic global food price upsurges of 2007/2008 and the resurgence of 2010/2011 have kept the welfare effects of food price shocks at the epicentre of policy discussions worldwide. Studies have found heterogeneous impacts, but empirically little is known in Nigeria. The key objectives of this study are to examine the welfare, i.e. food quantity consumption, dietary diversity, and economic welfare effects of food price spikes among households in Nigeria. Using the 2012/2013 and 2015/2016 Household Survey Panel Data, the linear individual (fixed) effects models were estimated while controlling for participation in safety net interventions and other factors to achieve the stated objectives. Findings suggest that higher spike in the price of cereals consistently has negative effect on food quantity (including calories) consumed, dietary diversity, and economic welfare of households, spikes of price of other staples, animal proteins, fats and oils, fruits and vegetables exert heterogeneous influence. Female headed households advance calorie consumption and dietary variety. Findings suggest that food distribution may be more effective in improving welfare of households than direct cash transfers. Efforts to mitigate extreme spikes in the prices of staples (especially cereals) are relevant for improved food security, nutrition and overall household welfare. However, if policy actions are complemented with food distribution and sensitively guided welfare related gender interventions, more improvements for livelihoods can be achieved.

Keywords: Price Shocks, Food Security, Economic Welfare, Safety Nets, Nigeria

JEL Classification: E31, Q11, Q18, P46, H55

Suggested Citation

Shittu, Adebayo and Akerele, Dare and Haile, Mekbib, Effects of Food Price Spikes on Household Welfare in Nigeria (February 2018). ZEF-Discussion Papers on Development Policy No. 248. Available at SSRN: https://ssrn.com/abstract=3156939 or http://dx.doi.org/10.2139/ssrn.3156939

Adebayo Shittu (Contact Author)

Federal University of Agriculture, Abeokuta ( email )

P.M.B 2240 Ogun State
Abeokuta, Ogun State 1110001
Nigeria

Dare Akerele

Federal University of Agriculture, Abeokuta ( email )

P.M.B 2240 Ogun State
Abeokuta, Ogun State 1110001
Nigeria

Mekbib Haile

University of Bonn - Center for Development Research (ZEF) ( email )

Walter-Flex-Str. 3
Bonn, NRW 53113
Germany

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