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The Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, has disclosed that some Nigerian households spend as much as 120 per cent of their income on food, forcing many to borrow money or depend on relatives to survive.
Oyedele, who spoke at Chatham House in London, said a government survey revealed that food costs had exceeded the total income of some households, highlighting the severity of the country’s cost-of-living crisis.
“In fact, there was a survey we did that shows that up to 120 per cent of household income is spent on food.
“Like, how do you spend 120 per cent of your income? You borrow food before the end of the month,” he said.
The minister said Nigeria’s poverty rate remained above 50 per cent despite an unemployment rate of about five per cent, warning that low unemployment figures did not reflect the financial struggles of millions of Nigerians who have jobs but cannot afford basic necessities.
“That tells you something. As a policymaker, you don’t sit back and say we don’t have unemployment. You have working poor,” he said.
Oyedele attributed the pressure on household budgets to persistently high food prices, noting that food inflation was not easing as quickly as the headline inflation rate.
He said food inflation stood at 19.6 per cent in September, adding that the cost of essential items such as tomatoes, garri and beans remained a major concern for households.
“Headline inflation is falling faster than the price of a basket of tomatoes, gari, and beans. And this widens inequality,” he said.
The minister added: “Macroeconomic stability means little to a mother who still cannot afford food.”
Oyedele identified low agricultural productivity, seasonal farming, post-harvest losses, inadequate storage facilities, high transportation costs and insecurity in farming communities as major factors driving food prices upwards.
He cited the loss of as much as 60 per cent of tomatoes after harvest as an example of the challenges confronting Nigeria’s agricultural sector.
According to him, the government is investing in agricultural technology, irrigation systems to support year-round farming, improved storage facilities and access to finance for smallholder farmers to increase food production and reduce waste.
He also said the administration was providing direct assistance through a cash transfer programme that had reached more than 10 million households.
“In the short term, the administration is providing direct support through a cash transfer programme that has reached more than 10 million households. Payments are made digitally and beneficiaries are verified with National Identification Numbers to reduce leakage,” he said.
The minister further argued that Nigeria’s household economic challenges were rooted in structural weaknesses rather than fuel taxation, stating that the country had no taxes on fuel.
He said the government was prioritising agriculture and non-tradable services, which together employ 81.4 per cent of working Nigerians.
Oyedele explained that the aim was to grow these sectors faster than the overall economy, raise household incomes and gradually reduce dependence on government cash transfers.
His remarks highlight the growing challenge facing policymakers as millions of Nigerians struggle to meet basic food needs despite efforts to stabilise the economy and improve agricultural production.
