Factors and Implications of the High Cost of Living on Households in Gwagwalada Area Council, Abuja

Abstract

Many Nigerian households are going through hardship to acquire the crucially needed necessities of food, clothing, and shelter. This paper investigated the major factors responsible for the high cost of living in the Federal Capital Territory Abuja, Gwagwalada Area Council and their implications on the households. Two specific objectives guided the study. The study adopted a descriptive survey research design. The study sample consisted of 399 out of 157,770 households in Gwagwalada Area Council. “High Cost of Living on Households Questionnaire (HCLHQ)” validated by three experts was used for data collection. The questionnaire was self-administered by the researchers with the help of three trained research assistants within two weeks, with a 75% return rate. The data obtained from the research were coded into Statistical Product and Service Solutions (SPSS, version 25). Frequencies, charts, and percentages were used to present the data. The results revealed that ineffective government economic policies (53.2%) and a hike in petroleum prices (21.3%), were the major factors of the high cost of living in the area. Other minor factors identified include corruption among public and private officials (16.3%) and the global economic crisis (7.6%). The finding also revealed the high crime rate (28.6%), social ills (25.6%), and hunger (25.2%) and the implications of the high cost of living among households in the area. The study recommended among others that to reduce the implications of the high costs of living on households, the government should embark on people-friendly economic policies and direct social support programmes towards reducing the negative impact on households.