Nigeria’s Finance Minister 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 money to meet their basic feeding needs amid the country’s persistent cost-of-living crisis.
Oyedele disclosed this while speaking at Chatham House in London, where he highlighted the growing financial pressure on households struggling to cope with high food prices despite having jobs.
According to the minister, a government survey found that food expenses in some households exceeded their total income, leaving families dependent on borrowing to survive until the end of the month.
“In fact, there was a survey we did that shows that up to 120 per cent of household income is spent on food,” he said.
The figure, however, refers to some households and should not be interpreted as the national average. Details of the survey’s methodology and coverage were not provided in the reported remarks.
Oyedele also disclosed that Nigeria’s poverty rate remained above 50 per cent, despite an unemployment rate of approximately five per cent, highlighting the challenge of working Nigerians whose earnings are insufficient to meet their basic needs.
“You have working poor,” he said, explaining that unemployment figures alone do not adequately reflect the economic difficulties facing millions of Nigerians.
The minister identified persistent food inflation as a major driver of household hardship, noting that the decline in headline inflation had yet to provide sufficient relief for many families.
He said food inflation stood at 19.6 per cent in September, while essential food items, including tomatoes, garri and beans, remained expensive.
“Macroeconomic stability means little to a mother who still cannot afford food,” Oyedele said.
He attributed high food prices to structural challenges in the agricultural sector, including low productivity, inadequate storage facilities, seasonal farming, insecurity and high transportation costs.
The minister further disclosed that up to 60 per cent of harvested tomatoes could be lost before reaching consumers, citing post-harvest losses as one of the factors contributing to food shortages and rising prices.
To address the challenges, Oyedele said the Federal Government was investing in irrigation, agricultural technology, improved storage facilities and financing for smallholder farmers.
He also revealed that the government’s cash transfer programme had reached more than 10 million households, with beneficiaries verified through their National Identification Numbers.
However, he acknowledged that financial assistance alone could not provide a lasting solution without improvements in agricultural productivity and household incomes.
According to him, the government is prioritising agriculture and non-tradable services, which together account for 81.4 per cent of Nigeria’s working population, as part of efforts to stimulate economic growth and reduce poverty.
The minister’s remarks highlight the disconnect between improving macroeconomic indicators and the daily realities of Nigerians whose earnings are increasingly insufficient to cover essential food expenses.
