Nigerian households are spending up to 120 per cent of their income on food, forcing many families to borrow money or rely on relatives to survive, according to Finance Minister Taiwo Oyedele. The minister disclosed the findings of a government survey while addressing an audience at Chatham House in London, highlighting the severity of the country’s ongoing cost-of-living crisis.
Oyedele explained that the statistic indicates that food costs have exceeded the total income of some households before the end of the month. “Like, how do you spend 120 per cent of your income? You borrow food before the end of the month,” he said. He noted that Nigeria’s poverty rate remains above 50 per cent, even with an unemployment rate of approximately five per cent, warning that low unemployment figures do not reflect the financial struggles of millions of Nigerians who are employed 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,” Oyedele stated. He attributed the pressure on household budgets to persistently high food prices, noting that food inflation is not declining as rapidly as the headline inflation rate. Specifically, food inflation stood at 19.6 per cent in September, with the cost of essential items such as tomatoes, garri, and beans remaining a major concern for families.
The minister identified several structural factors driving food prices upwards, including low agricultural productivity, seasonal farming, post-harvest losses, inadequate storage facilities, high transportation costs, and insecurity in farming communities. He cited the loss of as much as 60 per cent of tomatoes after harvest as a prime example of the challenges confronting the agricultural sector. “Headline inflation is falling faster than the price of a basket of tomatoes, gari, and beans. And this widens inequality,” he added, emphasizing that macroeconomic stability means little to a mother who still cannot afford food.
To address these issues, the government is investing in agricultural technology, irrigation systems for year-round farming, improved storage facilities, and access to finance for smallholder farmers. 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 using National Identification Numbers to reduce leakage.
Oyedele further argued that Nigeria’s household economic challenges are rooted in structural weaknesses rather than fuel taxation, noting that the country imposes no taxes on fuel. The government is prioritizing the agriculture and non-tradable services sectors, which together employ 81.4 per cent of working Nigerians. The aim is to grow these sectors faster than the overall economy to raise household incomes and gradually reduce dependence on government cash transfers.
<small>Source: The Sun Nigeria — read the original story there.</small>
