Determinants of household rice consumption in Nigeria: Application of Working-Leser single equation model

Abstract

This study adopted the Working-Leser single equation model in analysing the determinants of household rice consumption in Nigeria. The underlying data set was derived from a survey carried out as part of the post-harvest study conducted under the programme of increasing the quality and competitiveness of locally produced rice in sub-Saharan Africa through the use of New Rice for Africa (NERICA) and the promotion of improved post-harvest technologies by the AfricaRice (Ex- WARDA). The survey was conducted in Niger (North) and Ekiti (South) States covering a total of 200 households with an average of 100 households per state. The results of the analyses revealed the diverse socio-cultural dimensions of the people and how these affect rice consumption patterns in the country. Average quantity of rice consumed varied significantly between the north and the south but the average annual per capita consumption is estimated to be 78 kg. About 80% of the households in Nigeria consume rice at least once in a day while consumption is usually high throughout the year. The result of the share equation showed that all the explanatory variables are correctly signed and significant with the exception of household size. Expenditure elasticity is greater than one as the average Nigerian spent about 34 per cent of the weekly food expenditure on rice. The own price elasticity is also greater than one in both states while the cross price elasticity is only greater than one for Niger state. The income elasticity is positive in both states but less than one (inelastic). This is an indication that local rice in Nigeria can no longer be regarded as inferior goods.

Keywords: Rice, household, consumptions, expenditure, income elasticity.