ABSTRACT

This study examined the relationship between transportation cost and food price changes in Gwagwalada Area Council, Abuja, with the aim of determining how transportation expenses influence food pricing and consumers’ purchasing power. The study was motivated by the persistent increase in food prices in Nigeria and the growing concern over rising transportation costs driven by fuel price hikes, poor road infrastructure, and inefficiencies in the distribution system.

A descriptive survey research design was adopted for the study. Primary data were collected through structured questionnaires administered to 150 respondents comprising transport operators, food traders, and consumers within the study area, out of which 142 responses were valid for analysis. The data collected were analyzed using descriptive statistics such as frequency distribution, percentages, and mean scores, while inferential statistics, specifically Pearson Product Moment Correlation, were used to test the relationship between transportation cost and food prices.

The findings revealed that transportation costs in Gwagwalada have increased significantly, largely due to high fuel prices, poor road conditions, and multiple levies imposed on transport operators. The study also found that food prices have experienced a corresponding increase over time. A strong positive relationship was established between transportation cost and food prices, indicating that increases in transportation expenses directly contribute to higher food prices. Furthermore, the study showed that rising transportation costs have a significant negative effect on consumers’ purchasing power, particularly among low-income households.

Based on these findings, the study concludes that transportation cost is a major determinant of food price changes in Gwagwalada Area Council. The study recommends that government should improve road infrastructure, stabilize fuel prices, regulate transportation charges, and invest in alternative transport systems such as rail to reduce the cost of moving goods. These measures are essential for ensuring food affordability, reducing inflationary pressures, and improving the welfare of households.