Food Prices: Average Nigerian Income No Longer Enough to Feed Families – Oyedele

Nigeria’s Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, has disclosed that some Nigerian households spend as much as 120 per cent of their income on food amid rising prices and mounting economic hardship.

Oyedele said the situation had forced many families to borrow money or depend on relatives to meet their basic food needs before the end of the month.

The minister made this known while speaking at Chatham House in London, where he discussed Nigeria’s economic situation and the challenges facing households despite efforts to stabilise the economy.

According to him, a government survey showed that food expenses had exceeded the total income of some households, highlighting the difficulties faced by Nigerians struggling to afford basic necessities.

“In fact, there was a survey we did that shows that up to 120 per cent of household income is spent on food. You borrow food before the end of the month,” he said.

Oyedele noted that the situation reflected the growing number of Nigerians who are employed but remain unable to meet their basic needs because their earnings are insufficient.

“That tells you something. As a policymaker, you don’t sit back and say we don’t have unemployment. You have working poor,” he added.

The minister also expressed concern over the persistent rise in food prices, noting that food inflation remained higher than the headline inflation rate.

He said headline inflation stood at 14.63 per cent in September, while food inflation was recorded at 19.59 per cent, putting additional pressure on household budgets.

According to him, the disparity between the two inflation rates has widened inequality, as the prices of essential food items such as tomatoes, garri and beans remain high for many Nigerians.

“Headline inflation is falling faster than the price of a basket of tomatoes, gari, and beans. And this widens inequality,” he said.

Oyedele added that improvements in the country’s economic indicators would mean little if ordinary Nigerians continued to struggle to afford food.

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

He identified low agricultural productivity, seasonal farming, post-harvest losses, inadequate storage facilities, high transportation costs and insecurity in farming communities as some of the factors contributing to rising food prices.

The minister cited losses of up to 60 per cent of tomatoes after harvest as an example of the challenges affecting food production and distribution in the country.

He said the Federal Government was investing in agricultural technology, irrigation, storage facilities and access to finance for smallholder farmers to increase production, reduce waste and improve food availability.

Oyedele also disclosed that the government’s cash transfer programme had reached more than 10 million households, with payments made digitally and beneficiaries verified using their National Identification Numbers.

He said the administration was prioritising agriculture and non-tradable services, which together account for 81.4 per cent of employed Nigerians, as part of efforts to raise incomes and reduce dependence on government assistance.