The Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, has revealed that some Nigerian households spend as much as 120 per cent of their income on food, forcing them to borrow or depend on relatives to survive.
Speaking at Chatham House in London, Oyedele cited a government survey showing that food expenses exceed the total income of some households.
“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.
He noted that Nigeria’s poverty rate remains above 50 per cent despite an unemployment rate of about five per cent, pointing to the growing number of employed people struggling 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 stated.
Oyedele attributed rising food costs to structural challenges, including low agricultural yields, seasonal farming, post-harvest losses, inadequate storage, high transport costs and insecurity in farming communities. He cited cases where up to 60 per cent of tomatoes are lost after harvest.
He also said food inflation stood at 19.6 per cent in September, noting that food prices were declining more slowly than headline inflation.
“Macroeconomic stability means little to a mother who still cannot afford food,” he added.
To tackle the situation, the minister said the government was investing in agricultural technology, irrigation, storage facilities and financing for smallholder farmers.
He disclosed that the administration’s cash transfer programme had reached more than 10 million households, with digital payments and National Identification Number verification used to reduce leakages.
Oyedele added that agriculture and non-tradable services, which employ 81.4 per cent of working Nigerians, were being prioritised to boost incomes and reduce dependence on cash transfers.
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