Determinants of Household Food Expenditure: Does Engel Law Hold in Nigeria?

Abstract

The study investigated the determinant of household food expenditure in Nigeria using Nigeria General Household Survey panel component (GHS-Panel) 2018/19 data set. The survey collects a wide range of information from the household about their expenditure, income sources, education, demographic information, credit, remittances, household assets among other information. The findings revealed among others that variables like income, household remittances, access to loan, family size, and healthcare expenditure are all having significant impact on household food expenditure. However, factors like age, gender, and education do not have significant impact on household food expenditure. It was also revealed that families with high income tends to spend lower proportion of their incomes on food, which is consistent with the Engel law. The study conclude that Wagner Law holds in Nigeria and that family with more size spend more on starchy and carbohydrate food than on other class of foods.