Finance Minister and Coordinating Minister of the Economy, Taiwo Oyedele, has revealed that some Nigerian households spend more than their earnings on food, leaving them to borrow or depend on relatives to survive.
Speaking at Chatham House in London, Oyedele said a government survey found that food expenses consumed up to 120 per cent of some households’ income.
“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 remained above 50 per cent despite unemployment standing at about five per cent. He said this showed that many Nigerians had jobs but still struggled financially.
“That tells you something. As a policymaker, you don’t sit back and say we don’t have unemployment. You have working poor,” he said.
Oyedele blamed rising food costs, noting that food inflation reached 19.6 per cent in September and was falling more slowly than headline inflation.
“Headline inflation is falling faster than the price of a basket of tomatoes, gari, and beans. And this widens inequality,” he said.
“Macroeconomic stability means little to a mother who still cannot afford food,” he added.
He said Nigeria had no taxes on fuel, pointing instead to low farm yields, seasonal farming, poor storage, transport costs, insecurity and post-harvest losses, including the loss of up to 60 per cent of tomatoes.
To address the problem, the government is investing in farming technology, irrigation, storage and funding for small farmers.
Oyedele also said cash transfers had reached more than 10 million households, with digital payments and National Identification Number checks to reduce leakages.
He said agriculture and non-tradable services, which employ 81.4 per cent of working Nigerians, were being prioritised to boost incomes and reduce reliance on cash transfers.
