Nigeria’s 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 them to borrow or rely on relatives to survive.
Oyedele made the disclosure while speaking at Chatham House in London, where he cited a government survey indicating that food expenses in some households exceed their total income.
“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,” the minister said.
The disclosure highlights the pressure on household finances as millions of Nigerians struggle to afford basic necessities despite having jobs or other sources of income.
Oyedele said Nigeria’s poverty rate remained above 50 per cent despite an unemployment rate of about five per cent, arguing that the figures pointed to a growing population of people who work but remain unable to meet their basic needs.
“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.
The minister attributed the high cost of food to structural weaknesses in Nigeria’s agricultural and distribution systems, including low farm yields, seasonal production, post-harvest losses, inadequate storage facilities, expensive transportation and insecurity in farming communities.
He cited instances where as much as 60 per cent of tomatoes could be lost after harvest, worsening shortages and increasing the cost of getting produce from farms to consumers.
Oyedele also disclosed that food inflation stood at 19.6 per cent in September, noting that food prices were declining more slowly than overall inflation.
“Macroeconomic stability means little to a mother who still cannot afford food,” he said.
The minister said the Federal Government was pursuing measures to address the crisis through investments in agricultural technology, irrigation, storage infrastructure and financing for smallholder farmers.
He also disclosed that the administration’s cash transfer programme had reached more than 10 million households, with digital payments and National Identification Number verification being used to reduce leakages and improve the delivery of support.
According to him, agriculture and non-tradable services, which account for 81.4 per cent of working Nigerians, are among the sectors being prioritised to improve incomes and reduce dependence on government cash assistance.
However, the figures cited by the minister underscore the scale of the affordability challenge facing Nigerian households. When food spending exceeds household income, families may be forced to borrow, deplete savings, reduce the quality or quantity of meals, or depend on relatives to meet their daily needs.
The challenge for policymakers, therefore, is not only to maintain macroeconomic stability but also to ensure that its benefits translate into more affordable food, stronger household purchasing power and improved living standards.
