Some Nigerian households spend as much as 120 per cent of their income on food, forcing many to borrow or rely on relatives to get by, Finance Minister Taiwo Oyedele said on Monday.
Speaking at Chatham House in London, Oyedele said a government survey had shown food costs exceeding total household income for some families, underscoring the depth 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 noted that Nigeria’s poverty rate remained above 50 per cent despite an unemployment rate of about five per cent, warning that low joblessness figures masked the struggles of the working poor.
“That tells you something. As a policymaker, you don’t sit back and say we don’t have unemployment. You have working poor,” Oyedele said.
He attributed the pressure on household budgets to persistently high food prices, saying food inflation was not falling as quickly as the headline rate. Food inflation stood at 19.6 per cent in September, with the cost of staples such as tomatoes, garri and beans remaining a major burden.
“Headline inflation is falling faster than the price of a basket of tomatoes, gari, and beans. And this widens inequality,” he said. “Macroeconomic stability means little to a mother who still cannot afford food.”
Oyedele identified low agricultural productivity, seasonal farming, post-harvest losses, inadequate storage, high transport costs and insecurity in farming areas as key drivers of elevated food prices. He cited losses of as much as 60 per cent of tomatoes after harvest as an example of the challenges facing the sector.
The government, he said, is investing in agricultural technology, irrigation for year-round production, improved storage and financing for smallholder farmers. In the short term, a cash transfer programme has reached more than 10 million households, with payments made digitally and beneficiaries verified through National Identification Numbers to reduce leakage.
Oyedele added that Nigeria imposes no taxes on fuel and is prioritising agriculture and non-tradable services, which together employ 81.4 per cent of working Nigerians, with the aim of raising household incomes and reducing dependence on transfers.
