Science Letters

Zero Tariff Policy and Households Consumption of Imported Rice in Southwest Nigeria

Ashagidigbi Wahed Mobolaji *1, Yusuf Sulaiman Adesina 2, Adewale Ayoola 2

1 Agricultural and Resource Economics Department, Federal University of Technology, Akure, Nigeria

2 Agricultural Economics Department, University of Ibadan, Nigeria

Abstract

The changing consumption pattern of Nigerians occasioned by increasing urbanization has made rice a critical food consumed in urban Nigeria. Imported rice has gained prominence and government over the years has used trade policy measures to influence rice consumption. The most recent was the suspension of tariff on imported rice from April to October, 2008. This study examined the consumption pattern of households in Ibadan, South-west Nigeria over 2 periods; before and after April, 2008. Data were collected using structured questionnaires, administered to 102 randomly selected households. Data were analyzed using descriptive and regression techniques (AIDS model). This study showed rice as a major staple contributing largely to food security in Nigeria. However, the effect of tariff suspensions led to a reduction in price of rice after the tariff suspension, thus making it affordable to the majority of households. This tends to cushion the effect of the grain crisis witnessed before the suspension.

Key words AIDS model, elasticities, rice consumption, tariff suspension, trade policy.

Received October 13, 2015 Accepted January 20, 2016 Abstract Published February 18, 2016 Manuscript Published April 15, 2016

*Corresponding author Ashagidigbi Wahed Mobolaji Email ashagidigbi2000@yahoo.co.uk Tel +2348062328579