Severe Economic Toll on Nigerian Households Caught in Conflict and Natural Disasters

Strategic Insights -

A World Bank study highlights the devastating economic impact on Nigerian households struggling with the dual crises of conflict and natural disasters. The study, "Unpacking the Disaster-FCV Nexus: Household Economic Impacts of Conflict and Floods in Nigeria," found that conflict-affected households experience significantly lower consumption expenditure, with those also impacted by floods facing even more severe economic consequences. The research team, led by Karima Ben Bih, Bramka Jafino, Chloe Desjonqueres, and Solene Masson from the World Bank's Urban, Disaster Risk Management, Resilience and Land Global Department, used a rigorous methodology to analyze data from the Living Standards Measurement Survey (LSMS) and the Armed Conflict Location and Event Data Project (ACLED). Their findings reveal a stark reality: conflict alone reduces household consumption expenditure by up to 16.7%, while households reporting flood-related losses and conflict experience an average reduction of 152% (based on survey data) or 58% (based on satellite imagery).

Key Takeaways:

  • Conflict-affected households experience significantly lower consumption expenditure, with an average reduction of up to 16.7%.
  • Households reporting flood-related losses and conflict experience an average reduction of 152% (based on survey data) or 58% (based on satellite imagery) in consumption expenditure.
  • The study highlights the compounded vulnerabilities faced by communities in conflict- and flood-affected areas, emphasizing the need for urgent, integrated policy interventions.
  • The researchers stress the importance of improving data collection efforts to better capture the intersection of conflicts and natural hazards.
  • The study recommends integrating conflict exposure dynamics into decision-making processes for disaster resilience policy formulation.

Statistics:

  • 16.7%: Average reduction in household consumption expenditure for conflict-affected households.
  • 152%: Average reduction in household consumption expenditure (based on survey data) for households reporting flood-related losses and conflict.
  • 58%: Average reduction in household consumption expenditure (based on satellite imagery) for households reporting flood-related losses and conflict.
  • 2012, 2015, and 2018: Years in which the Living Standards Measurement Survey (LSMS) data was collected.
  • 2018: Year in which the Armed Conflict Location and Event Data Project (ACLED) conflict data was obtained.

Sources:

  • World Bank's Urban, Disaster Risk Management, Resilience and Land Global Department. (2020). Unpacking the Disaster-FCV Nexus: Household Economic Impacts of Conflict and Floods in Nigeria. Policy Research Working Paper 11167.
  • World Bank. (2020). Living Standards Measurement Survey (LSMS). Retrieved from
  • Armed Conflict Location and Event Data Project (ACLED). (n.d.). Conflict Data. Retrieved from