AN IMPACT ASSESSMENT ON NAIRA DEVALUATION ON FOOD SECURITY IN EDO STATE: A CASE STUDY OF OREDO LOCAL GOVERNMENT AREA (2019 – 2023)

ABSTRACT

Nigeria has been battling myriads of socio-economic crises in recent times. A country that is so blessed with both human and natural resources should not be seen or heard battling with issues of economy, food, poverty, unemployment, inflation and terrorism-related crises. More recently, there has been a persistent geometric increase in food prices to the extent that an average Nigerian cannot afford a good meal to eat in a day. In the same vein, the country has been battling myriads of insecurity ranging from Boko Haram to banditry to farmer-herder crises. While studies have shown that there could be a link between currency devaluation and food insecurity, little attention has been paid to the impact of naira devaluation on the rising food prices (food inflation) in Nigeria. The study therefore examined this phenomenon using Oredo LGA as a case study. The study randomly selected 200 respondents from four purposively selected wards:Ibiwe/Iwegie/Ugbague, New Benin I, New Benin II and Oredo. A structured questionnaire was the instrument utilized to elicit responses from the selected respondents. The study utilized state fragility to argue for the place of weak institutions and mismanagement of funds as the cause of both naira devaluation and food inflation in Nigeria. The study made the following findings. First, the naira devaluation has impacted food availability in Oredo Local Government Area of Edo State. Second, the study found that naira devaluation has an impact on food access in Oredo Local Government Area of Edo State. Third, the study found that naira devaluation has an impact on food utilization/consumption in Oredo Local Government Area of Edo State. Last, the study found that naira devaluation has an impact on food stability in Oredo Local Government Area of Edo State.  The study therefore recommends the following: Nigeria should approve unconditional money transfer to Nigerians in a transparent manner so as to cushion the effects of economic bite. Second, it is important that the government continues to boost the morale of the security agents fighting these attackers. Last, it is imperative for the government to monitor price increase in the markets. Nigeria is notorious for taking advantage of any situation to inflate process of goods.