Nigeria's Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, has disclosed that some Nigerians spend as much as 120 per cent of their income on food. This revelation was made during a speech at Chatham House in London, where he highlighted the struggles of households in meeting their basic needs. According to Oyedele, a government survey showed that food expenses exceeded the incomes of some households, leading to borrowing or reliance on relatives.
Oyedele pointed out that Nigeria's poverty rate remained above 50 per cent despite an unemployment rate of about five per cent. He noted that this indicates a growing number of people who work but still struggle to meet their basic needs, describing them as the "working poor". The minister attributed the pressure on households to high food prices, which he said were not falling as quickly as headline inflation. In September, food inflation stood at 19.6 per cent.
The minister identified several factors driving food prices, including low agricultural yields, seasonal farming, post-harvest losses, poor storage and logistics, high transport costs, and insecurity in farming communities. He cited losses of up to 60 per cent of tomatoes after harvest as an example of the challenges facing the agricultural sector. Oyedele emphasized that macroeconomic stability means little to a mother who still cannot afford food.
Oyedele argued that the pressure on household budgets was linked to deeper structural problems rather than fuel taxes, as Nigeria has no taxes on fuel. He said the government was investing in agricultural technology, irrigation to support year-round farming, improved storage facilities, and access to finance for smallholder farmers. These investments aim to address the root causes of high food prices.
In the short term, the administration is providing direct support through a cash transfer programme that has reached more than 10 million households. Payments are made digitally, and beneficiaries are verified with National Identification Numbers to reduce leakage. Oyedele said this programme was helping to alleviate the suffering of vulnerable households.
The government is prioritizing agriculture and non-tradable services, which together employ 81.4 per cent of working Nigerians. The aim is to grow these sectors faster than the overall economy, increase incomes, and gradually reduce dependence on cash transfers. Oyedele emphasized that this approach would help to address the poverty and inequality challenges facing the country.
The situation highlights the need for a comprehensive approach to addressing poverty and inequality in Nigeria. With a large portion of the population struggling to afford basic necessities, the government faces a significant challenge in finding sustainable solutions. Oyedele's remarks underscore the importance of addressing the root causes of poverty and inequality to achieve long-term economic stability.
Key points
- Some Nigerians spend 120% of their income on food, forcing them to borrow or rely on relatives to survive.
- Nigeria's poverty rate remains above 50% despite a low unemployment rate of about 5%.
- The government is investing in agricultural technology and providing direct support to vulnerable households through a cash transfer programme.
