Nigerian Households Spend Up to 120% of Income on Food, Finance Minister Says

Nigeria’s Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, has said some Nigerian households spend as much as 120 per cent of their income on food amid rising living costs and persistent pressure on household budgets.

Oyedele made the disclosure while speaking at Chatham House in London, where he discussed the country’s economic situation and the challenges facing policymakers. He said a government survey showed that food expenses could exceed household income, forcing some Nigerians to borrow money or depend on relatives to meet their basic needs.

“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,” the minister said.

He explained that the findings highlighted the difficulties faced by working Nigerians who struggle to meet essential expenses despite earning an income. Oyedele argued that the situation required government attention rather than inaction.

“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 highlighted the difference between headline inflation and food inflation, saying the prices of essential food items were putting additional pressure on households even as overall inflation eased.

According to the figures cited in the report, headline inflation stood at 14.63 per cent in September, while food inflation was higher at 19.59 per cent. Oyedele said the slower decline in food prices compared with the broader inflation rate was widening inequality.

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

He acknowledged that efforts to stabilise the macroeconomy were underway but stressed that improvements in economic indicators did not automatically translate into better living conditions for ordinary Nigerians.

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

The report noted that the National Bureau of Statistics had reported a decline in headline inflation alongside an increase in food inflation in September. However, some financial analysts have questioned the accuracy of the official inflation figures, arguing that the actual rate of price increases may be higher than reported.

Financial analyst Okechukwu Unegbu was identified as one of the critics of the NBS inflation data. The report did not provide detailed evidence supporting the alternative estimates.

Oyedele’s remarks highlight the continuing challenge of translating macroeconomic changes into relief for households struggling with food costs. His comments also draw attention to the difficulties faced by low-income earners whose wages may not keep pace with the cost of basic necessities.