EFFECT OF INFLATION AND TERRORISM ON FOOD POVERTY IN NIGERIA

Abstract

The rate of inflation in Nigeria has continued to rise amidst other unfavourable macroeconomic indicators. Relatedly, incidents of terrorism and armed conflicts have continued to surge despite various policy measures to combat these trends. This study investigates to what extent does inflation and terrorism affect food production in Nigeria. The Fully Modified OLS (FMOLS) estimation technique was applied to data sourced from the World Bank Hunger Statistics (2021), Global Terrorism Database (2021), World Development Indicators (WDI) 2021, the Central Bank of Nigeria (2021) statistical bulletin, and the Global Consumption and Income Project Data Catalog 2020. Our results reveal that rising inflation and terrorism incidents significantly increase food poverty in the country. Also, the study findings suggest that income increases will reduce food poverty. For an agrarian economy like Nigeria, the simultaneity in the relationships between terrorism and food poverty on the one hand, and inflation and food poverty on the other, should interest stakeholders in the design of policies.