The National Bureau of Statistics (NBS) has revealed that rising prices of essential food items are the most significant economic challenge affecting Nigerian households. According to the latest General Household Survey-Panel (GHS-Panel) Wave 5 for 2023/2024, 71% of households reported experiencing this issue.
The report, unveiled in Abuja, showed urban households were disproportionately affected, with 75.5% reporting food price shocks compared to 68.9% in rural areas. Regionally, the South-East and South-South zones were hit hardest, with 83.6% and 79.3% of households, respectively, reporting the impact.
Price hikes on essential goods were identified as a nationwide concern. Other prominent economic shocks included increased oil and fuel prices (52%), higher costs of other fuels (32.2%), and farming or business input expenses (28.8%). Natural challenges like floods (8.8%), droughts (5.8%), and pest and plant diseases (5.7%) were also noted, alongside petrol shortages (5.3%), irregular rainfall (4.7%), and extreme temperatures exceeding 40°C (4.7%).
In response to these challenges, nearly half of households (48.8%) reduced their food consumption, while 36.1% sought support from friends and family, and 32.6% purchased fewer items. Notably, 28.3% of households adopted no coping strategies.
Safety-net assistance coverage declined, with only 4% of households nationwide receiving aid, compared to 10.4% in the previous survey wave. Urban households reported better access to assistance (5.2%) than rural ones (3.5%), relying more on cash aid (60.5%) than rural households (49.6%). At the regional level, the South-South and North-West zones had the highest safety-net coverage at 6.7% and 5.6%, respectively.
The GHS-Panel, a longitudinal survey conducted since 2010, tracks household-level changes in welfare, employment, and socio-economic outcomes. The NBS stated that the data provides valuable insights for crafting policies to address these challenges.
Credit: NAN (Text Excluding Headline)
