AN ASSESSMENT OF THE IMPACT OF FOOD INFLATION ON HOUSEHOLD FOOD INSECURITY AMONG RESIDENTS OF APO, ABUJA

CHAPTER ONE INTRODUCTION 1.1 Background of the Study Food remains a fundamental requirement for every household, as it is essential to human survival. For this reason, ensuring the availability and safety of food must be prioritized by all governments. Achieving food security in any nation necessitates that the majority, if not the entirety, of its population consistently has access to sufficient, safe, nutritious, and culturally acceptable food that supports an active and healthy life. On the other hand, household food insecurity arises when individuals lack consistent, dependable access to adequate, safe, and nutritious food required for healthy living and productivity (Usen, 2018). In recent years, food inflation has become a prominent global concern, bearing significant implications for economic development. The rise in food prices undermines households’ purchasing power, leading to a reduction in real income per capita—an issue that is particularly severe in developing countries (Abdulaziz, Rahim & Adamu, 2019). In many of these countries, the majority of households live in poverty and spend a considerable portion of their income on basic food items. As food prices rise, these households experience intensified financial stress (Abdulaziz et al., 2019). According to the Food and Agriculture Organization (FAO), over 815 million people globally suffer from hunger. The FAO (2017) reported that the rate of extreme poverty surged from 6% in 2013 to 14% in 2017, affecting approximately 705 million people due to escalating food prices. In Nigeria, the consequences of food inflation extend beyond households, contributing to macroeconomic instability and deterring investments—particularly in small-scale enterprises that lack access to credit. This scenario contributes to internal economic disequilibria, heightening poverty levels and increasing the overall cost of living (Bada et al., 2018). Unsurprisingly, Nigeria has recorded higher food inflation rates than other African countries such as Ghana and South Africa and has been listed among the 41 low-income food-deficit nations globally—a situation largely driven by the country’s heavy reliance on imported food (World Bank, 2018). Food inflation is defined as the sustained rise in the overall prices of food commodities. This phenomenon significantly affects national food security (Shittu, 2020). Nigeria’s dependence on food imports has made it particularly vulnerable to price increases on the international market, which directly impact domestic food prices (Tosin, 2023). Data from the National Bureau of Statistics (NBS) reveal that between 2013 and 2021, food prices in Nigeria consistently trended upward, with periodic short-term fluctuations corresponding with movements in global food markets (Solomon et al., 2023). Egwuma et al. (2024) further highlighted that food inflation in Nigeria has reached double-digit levels in recent years, peaking at 20.32% in September 2023. Additionally, the prices of staple foods have risen due to broader economic challenges facing the country (Shehu et al., 2024). The increasing rate of poverty has been attributed to worsening economic conditions characterized by reduced supply of goods, higher fuel prices, increased electricity tariffs, and the depreciation of the Nigerian naira (Asaha et al., 2024). Despite the country’s wealth in human and natural resources and improvements in food production between 2012 and 2015, the FAO has reported that over 7.1 million Nigerians are currently grappling with severe food insecurity (Emeka et al., 2017). According to Nwankpa (2024), prolonged economic hardship and surging inflation have resulted in rising levels of hunger and malnutrition. The reduced nutrient intake caused by high food prices has contributed to declining health conditions and heightened susceptibility to disease (Job, 2023). Food inflation remains a critical issue affecting urban households globally, especially in developing economies such as Nigeria. Apo, a suburb within the Abuja Municipal Area Council (AMAC), exemplifies the broader socioeconomic challenges faced by urban areas. Despite its proximity to Abuja’s administrative and economic center, many residents in Apo experience rising living costs and food insecurity. Hence, this study seeks to investigate the relationship between rising food prices and the prevalence of household food insecurity among residents in Apo, Abuja. 1.2 Statement of the Problem The prevalence of food inflation in numerous urban centers has significantly affected household access to adequate and affordable food. In Apo, a fast-growing suburban community in Abuja, Nigeria, the continual rise in food prices places enormous pressure on household finances, manifesting in various forms of food insecurity. This is particularly concerning, given that adequate and nutritious food is critical to maintaining the health and well-being of urban populations. While every government aims to regulate food prices, Nigeria’s volatile exchange rate continues to affect food affordability. In the current global economic climate, exchange rates serve as key indicators influencing national food pricing and broader economic growth (Obi et al., 2018). According to the Nigeria Bureau of Statistics (NBS), the exchange rate significantly affects macroeconomic indicators such as food inflation, due to the inelastic nature of food demand. The exchange rate also directly influences the movement of goods and capital across national borders (NBS, 2018; Abdulaziz et al., 2019). Moreover, exchange rate volatility exerts pressure on a nation’s balance of payments and affects domestic food prices. This has significant implications for the production and consumption balance between imported and locally-produced goods (World Bank, 2018; Obi et al., 2019). Adetiloye and Kehinde (2020) noted that this volatility has further intensified market speculation, particularly due to Nigeria’s dependence on imports, which directly compete with local production. Recent data from Nairametrics (2024) shows that rural unemployment in Nigeria rose to 4.0% in the third quarter of 2023, a substantial increase from 2.5% in the previous quarter—a 60% jump in just three months. A key contributor to this trend is insecurity in agricultural zones, which has led to reduced farming activity, increased hunger, and worsened food inflation (Premium Times, 2024). According to the Lagos Commodities and Futures Exchange (LCFE, 2024), Nigeria is facing a food crisis marked by surging prices, increased transportation costs, persistent insecurity, inadequate infrastructure, and unstable foreign exchange rates. Given these growing concerns, this study is both relevant and timely, as it seeks to critically analyze the effect of food inflation on household food insecurity among residents in Apo, Abuja. 1.3 Objectives of the study The primary objective of this study is to critically assess the Impact of Food Inflation on Household Food Insecurity Among Residents of Apo, Abuja. Specific objectives of this study are to: i.To assess the extent of food inflation in Apo, Abuja. ii.To analyse the impact of rising food prices on household food security. iii.To examine the nutritional and health implications of food insecurity caused by food inflation. iv.To provide strategic interventions to address food insecurity and support affected households. 1.4 Research Questions The following research questions which are in line with the objectives of this study will be answered in this study: i.What is the extent of food inflation in Apo, Abuja? ii.What is the impact of rising food prices on household food security? iii.What are the nutritional and health implications of food insecurity caused by food inflation? iv.What are the strategic interventions to address food insecurity and support affected households? 1.5 Research Hypotheses To determine the effectiveness of this study, the following research null hypotheses will be formulated to guide the study and it will be tested at 0.05% levels of significance.: Ho: The extent of food inflation in Apo, Abuja is low Ha: The extent of food inflation in Apo, Abuja is high. 1.6 Significance of the study The study centers on a pivotal issue that has a substantial influence on the well-being and advancement of Nigeria. This study will set a crucial benchmark for the agricultural sector of Nigeria, as well as for policymakers and the government. Moreover, it will elevate the general quality of life for Nigerians. The study will be highly significant for the agriculture sector as it will assist in devising strategies to augment agricultural productivity, which is crucial for ensuring economic stability and fostering growth. Improved food security can lead to economic benefits by reducing poverty and increasing labor productivity. Furthermore, this study will provide government officials and policy makers with vital insights that help guide the formulation and implementation of effective food security programmes. Furthermore, it will furnish the administration with helpful observations regarding areas that want improvement or alteration. Furthermore, the study seeks to enhance the quality of life for Nigerians. The study seeks to alleviate poverty by identifying and addressing the socio-economic elements that contribute to food inflation. This study's findings will further enhance social stability by reducing the probability of conflicts and societal unrest caused by food scarcity.  Moreover, future academics will employ it as a comprehensive analysis of existing literature. As a result, other students who are interested in exploring this topic will have the opportunity to use this work as a source that may be analyzed and assessed. The study unequivocally improves the current academic knowledge regarding the impact of food inflation on household food insecurity among inhabitants in Apo, Abuja. 1.7 Scope of the study Broadly, this study focuses to critically assess the Impact of Food Inflation on Household Food Insecurity Among Residents of Apo, Abuja. Specifically, this study seeks to assess the extent of food inflation in Nigeria and analyse the impact of rising food prices on household food security.  Further, this study will focus on examine the nutritional and health implications of food insecurity caused by food inflation, and it also seeks to provide strategic interventions to address food insecurity and support affected households. 1.8 Limitations of the study As is common in all human endeavors, the researchers faced minor limitations when conducting the study. The main limitation was the lack of extensive literature on the subject, as there is limited data available for examination of the effect of food inflation on household food insecurity among residents in Nigeria. Consequently, a significant amount of time and effort was necessary to locate the appropriate materials, books, or information and to gather data. Additionally, this study is constrained by its small sample size and narrow geographical scope, focusing just on Nigeria. Consequently, the results of this study are not applicable for generalization, thereby leaving room for further research.  Furthermore, the researcher faced a time constraint due to the need to do this research while also fulfilling the obligations of attending lectures and other educational activities. 1.9 Definition of terms Food security: Food security is when a person is able to obtain a sufficient amount of healthy food on a day-to-day basis. Food insecurity: Food insecurity is when a person cannot find adequate amounts of healthy food on a daily basis. Food security happens when a person does get the recommended amount of healthy food on a daily basis. Food inflation: Food inflation occurs when there is a consistent and ongoing increase in the overall price of food items.