Effects of Covid-19 pandemic on commodity price volatility and the welfare of farming household in Nigeria
Paper Details
Effects of Covid-19 pandemic on commodity price volatility and the welfare of farming household in Nigeria
Abstract
The evolving uncertainty of the emergence of the COVID-19 pandemic has adversely impacted some commodity prices, the welfare of farming households, and the economic growth and development of the country. The study is aimed at assessing the effects of Covid -19 pandemic on commodity price volatility and the welfare of farming households in Nigeria. The study was based on secondary data from (2010- 2022, and forecasts from 2023 -2026), collected from the Central Bank of Nigeria publication, IMF World economic outlook, and the World Bank report. Time- response graph and Autoregressive Moving Average (ARMA) was used to analyze the trend of the inflation rate, and T-test statistics, were used to test the relationship between the real income of farming household before and during the pandemic. The result showed that prices of some commodities doubled after the pandemic. There is a significant difference between the real income of farming households before and during the pandemic. The study recommends that a price control mechanism should be put in place to manage the affordability of goods and services in the market because this has a direct effect on the growth and development of the country.
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