Assessing the Economic Effects of Inflation and Food Insecurity on Household Incomes in Akwanga, Nasarawa State.

Abstract:

This study examined the economic effects of inflation and food insecurity on household incomes in Akwanga, Nasarawa State, Nigeria. A cross-sectional survey design was adopted, targeting households across six districts within Akwanga. Primary data were collected using structured questionnaires and analysed through descriptive statistics, correlation analysis, and ordinal logistic regression. The analysis focused on capturing both the direction and significance of the relationships between inflation, food insecurity, coping strategies, and household incomes. Findings showed that inflation had a significant negative effect on household income, indicating that rising prices of goods and services eroded purchasing power and reduced real earnings among households in the area. Food insecurity also exhibited a negative and significant impact on income, suggesting that limited access to adequate and affordable food further constrained economic stability. However, coping strategies, such as income diversification, informal borrowing, food rationing, and asset management, had a positive and statistically significant influence on household income, highlighting the role of resilience mechanisms in cushioning economic shocks. In response to these findings, the study recommended targeted interventions. The Central Bank of Nigeria and the Federal Ministry of Finance were advised to implement inflation control measures that are sensitive to rural economic realities. The Federal Ministry of Agriculture and Food Security, in collaboration with the Nasarawa State Ministry of Agriculture, was encouraged to strengthen rural food systems through improved input access, storage infrastructure, and food distribution networks. To support household-level resilience, the Bank of Industry and Development Bank of Nigeria were urged to expand microcredit access, while local government authorities and the National Orientation Agency were called upon to promote sustainable coping strategies through community engagement.