Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, has said Nigerians in some households spend as much as 120 per cent of their income on food and are forced to borrow or rely on relatives to survive.
Oyedele disclosed this while speaking at Chatham House in London, where he highlighted the growing financial pressure on households and the challenges facing workers whose earnings are insufficient to meet their basic needs.
He said a government survey showed that food expenses exceeded the total income of some households, leaving them struggling to provide for themselves and their families.
“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, arguing that employment figures alone did not reflect the economic realities of many citizens.
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According to him, a significant challenge is the growing number of people who have jobs but still cannot earn enough to 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 stated.
Oyedele attributed the high cost of food to several structural problems affecting agriculture, including low yields, seasonal production, post-harvest losses, inadequate storage facilities, expensive transportation and insecurity in farming communities.
He said post-harvest losses remained a major concern, citing instances where as much as 60 per cent of tomatoes were lost after harvesting.
On inflation, Oyedele said food inflation stood at 19.6 per cent in September, adding that food prices were easing more slowly than the overall inflation rate.
“Macroeconomic stability means little to a mother who still cannot afford food,” he added.
To address the challenges, the minister said the Federal Government was investing in agricultural technology, irrigation and storage infrastructure, while expanding access to financing for smallholder farmers.
He also disclosed that the administration’s cash transfer programme had reached more than 10 million households.
According to him, digital payments and verification through the National Identification Number were being used to reduce leakages in the distribution of financial assistance.
Oyedele said the government was also prioritising agriculture and non-tradable services, which account for 81.4 per cent of working Nigerians, as part of efforts to improve incomes and reduce poverty.
He added that strengthening these sectors would help more Nigerians earn sustainable incomes and reduce their dependence on government cash transfers.
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