Nigerians Spend Up to 120% of Income on Food, Borrow to Survive —Finance Minister

News in Brief:

— Taiwo Oyedele says some Nigerian households spend up to 120% of their monthly income on food, forcing them to borrow or depend on relatives.

— He attributed persistent food inflation to low agricultural productivity, insecurity, post-harvest losses, weak storage and high transport costs.

Speaking at Chatham House in London, Finance Minister and Coordinating Minister of the Economy Taiwo Oyedele cited a government survey showing that food expenses exceed earnings for some families, forcing them to take loans, rely on relatives or reduce spending on other essentials.

Oyedele said Nigeria’s poverty rate remains above 50% despite unemployment standing at about 5%, highlighting the challenge of working people who cannot earn enough to afford necessities. He also noted that food prices have not eased as quickly as headline inflation. Food inflation stood at 19.6% in September, according to the figures he cited.

“Macroeconomic stability means little to a mother who still cannot afford food,” he said.

Food Inflation and Government Interventions

The minister attributed persistent food inflation to low agricultural yields, seasonal production, post-harvest losses, inadequate storage, high transport costs and insecurity in farming communities.

He cited tomato losses of up to 60% after harvest as an example of the supply-chain challenges affecting food availability and prices.

Government interventions include investment in agricultural technology, irrigation, storage facilities, rural roads and security in farming communities, alongside efforts to improve access to finance for smallholder farmers and businesses.

Oyedele said the government's cash transfer programme had reached more than 10 million households, with digital payments and National Identification Number verification intended to reduce leakages. He added that the administration's policies prioritise agriculture and non-tradable services, which together employ 81.4% of working Nigerians.