Some Nigerian households spend as much as 120 per cent of their monthly income on food, forcing families to borrow money, depend on relatives and struggle to meet other basic needs, the Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, has disclosed.
Oyedele made the disclosure while speaking at Chatham House in London, where he discussed Nigeria’s economic challenges, persistent food inflation and the difficulties facing households despite efforts by the Federal Government to stabilise the economy.
According to the minister, a government survey showed that food expenditure in some households had exceeded their total monthly earnings, leaving families with little choice but to seek financial assistance to survive until the next payday.
He questioned how households could spend more than their entire income on food without borrowing or obtaining support from other sources.
“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,” Oyedele said.
The disclosure highlights the pressure facing low-income earners and families whose earnings have failed to keep pace with the cost of essential commodities.
It also raises concerns about the relationship between Nigeria’s economic indicators and the everyday experiences of citizens who continue to struggle to afford food, transportation, healthcare, housing and education.
Oyedele Highlights Nigeria’s Working Poor
The finance minister said Nigeria’s economic challenges could not be assessed through unemployment figures alone, arguing that the country must also address the plight of people who have jobs but remain unable to afford basic necessities.
Oyedele put Nigeria’s unemployment rate at about five per cent and said the country’s poverty rate remained above 50 per cent.
He described the situation as evidence of a large population of working poor — people who earn an income but still struggle to meet their basic needs.
“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.
The minister’s remarks point to a broader challenge facing the Nigerian economy: employment does not necessarily guarantee financial security when wages, business earnings and other household income sources are insufficient to cover essential expenses.
For families in this situation, rising food prices can consume money that would otherwise be used to pay rent, purchase medicines, transport children to school or meet other obligations.
Some households may also resort to borrowing from friends, relatives, informal lenders or other sources to meet immediate needs, potentially increasing their financial difficulties in subsequent months.
However, the 120 per cent figure cited by Oyedele relates to some households identified by the government survey. It should not be interpreted as the average amount spent on food by every Nigerian household.
Food Prices Remain a Major Concern
Oyedele attributed the continuing pressure on household finances partly to food prices, which he said were not easing as quickly as the broader inflation rate.
He put food inflation at 19.6 per cent in September, stressing that a decline in headline inflation did not necessarily mean that the prices of everyday food items had become affordable.
The minister cited essential commodities such as tomatoes, garri and beans as examples of items whose prices continue to affect household budgets.
“Headline inflation is falling faster than the price of a basket of tomatoes, gari, and beans. And this widens inequality,” he said.
He added that improvements in macroeconomic indicators would have limited meaning for families that remained unable to afford adequate meals.
“Macroeconomic stability means little to a mother who still cannot afford food,” Oyedele said.
Inflation measures the rate at which prices increase over time. Therefore, a reduction in the inflation rate does not automatically mean that prices have returned to earlier levels or that consumers can purchase the same quantity of goods with their existing earnings.
For households already dealing with high living costs, food prices can remain burdensome even when the rate of increase begins to slow.
The minister’s comments underline the importance of assessing economic reforms not only through inflation, growth and other national indicators, but also through their effects on household purchasing power.
Minister Identifies Causes of High Food Prices
Oyedele identified several structural challenges contributing to the high cost of food in Nigeria, including low agricultural productivity, seasonal farming, post-harvest losses, inadequate storage facilities, high transportation costs and insecurity in farming communities.
He said weaknesses across the agricultural value chain continued to affect food availability and affordability.
One of the problems highlighted by the minister was the loss of tomatoes after harvest, which he said could reach as much as 60 per cent.
Such losses reduce the quantity of produce available for sale, while farmers and traders may struggle to recover the cost of production, transportation and handling.
Poor storage facilities can also force farmers to sell perishable produce quickly, sometimes at unfavourable prices, while transportation challenges increase the cost of moving food from rural communities to major urban markets.
Insecurity presents another obstacle by restricting access to farmland, disrupting farming activities and making it more difficult to transport agricultural products safely.
Seasonal production also affects the availability of some food items, creating periods when supply falls and prices rise.
These challenges mean that addressing food inflation requires more than monitoring monetary indicators. It also requires measures to improve production, storage, transportation, security and access to markets.
Federal Government Outlines Agricultural Interventions
The minister said the Federal Government was investing in measures intended to increase agricultural productivity and reduce losses across the food supply chain.
According to him, the government’s priorities include agricultural technology, irrigation systems that can support year-round farming, improved storage facilities and expanded access to finance for smallholder farmers.
Irrigation is expected to help farmers reduce their dependence on seasonal rainfall and maintain production during periods when water availability would otherwise limit cultivation.
Improved storage facilities could also reduce the amount of produce lost after harvest, allowing more food to reach consumers and potentially easing pressure on prices.
Access to finance is another important factor because smallholder farmers often require funding to purchase seeds, fertilisers, equipment and other inputs needed to increase production.
Oyedele said the government was also prioritising agriculture and non-tradable services, sectors that he said together accounted for 81.4 per cent of employed Nigerians.
The strategy, according to the minister, is to accelerate growth in these sectors beyond the overall rate of economic expansion, increase household incomes and reduce poverty over time.
The effectiveness of these measures will depend on their implementation and whether improvements in production and distribution translate into lower prices and better incomes for ordinary Nigerians.
Cash Transfers Target Vulnerable Households
Oyedele also disclosed that the Federal Government’s cash transfer programme had reached more than 10 million households.
He said payments were made digitally, with beneficiaries verified through their National Identification Numbers to reduce the risk of funds being diverted away from intended recipients.
The programme is intended to provide short-term financial support to vulnerable households while the government pursues broader economic measures.
Cash transfers can help beneficiaries meet immediate expenses, including food purchases and other essential needs. However, the extent of their impact depends on the adequacy of payments, the accuracy of beneficiary selection and the regularity of disbursement.
The minister said the administration intended to raise incomes and improve economic opportunities so that households would gradually become less dependent on government assistance.
Nevertheless, the disclosure that some families spend more than their entire income on food illustrates the scale of the challenge facing policymakers.
Where earnings are insufficient to meet basic needs, temporary financial assistance may provide relief, but sustained improvements will also require better employment opportunities, stronger productivity and more affordable essential goods.
120% Food Spending Claim Draws Attention
The minister’s statement has drawn attention to the difficulties confronting Nigerian families amid the continuing debate over the cost of living and the impact of economic reforms.
The figure is striking because household expenditure cannot sustainably exceed household income without additional resources, such as borrowing, financial assistance from relatives, savings or other earnings.
Oyedele’s explanation was that some families were effectively financing their food consumption through such additional support.
However, the figure should be understood in the context of the government survey he cited. Without further published details on the survey’s methodology, sample size, geographical coverage and income groups, it is not possible to determine from the statement alone how widespread the 120 per cent spending pattern is across Nigeria.
The claim nevertheless highlights the vulnerability of households whose earnings are consumed largely by food purchases.
It also reinforces the need for reliable data on household income, consumption, poverty and food affordability to guide economic policy.
For families facing financial pressure, the consequences can extend beyond food. Money spent on feeding may leave little for medical treatment, children’s education, transportation, housing and savings.
Where borrowing becomes a regular means of meeting basic needs, households may accumulate debts that make it even more difficult to manage future expenses.
Economic Reforms Face Household Affordability Test
Oyedele’s remarks highlight the challenge confronting the Federal Government as it seeks to improve macroeconomic stability while responding to the immediate needs of Nigerians.
Economic indicators can provide important information about the direction of the economy, but their benefits are not always felt equally across income groups.
For low-income households, the cost of food is particularly important because it represents an unavoidable expense. When food prices rise faster than earnings, families may have to reduce spending on other necessities or seek financial assistance.
The government’s stated focus on agricultural production, irrigation, storage, financing and social transfers is intended to address different aspects of the problem.
However, the key test will be whether these interventions improve food availability, reduce distribution costs, raise incomes and make essential commodities more affordable.
Improved security in farming communities, better rural roads and more efficient supply chains could also help reduce the costs associated with producing and transporting food.
At the same time, policies aimed at increasing productivity will need to translate into measurable improvements in the purchasing power of households.
For millions of Nigerians, the most immediate measure of economic progress remains whether their earnings can provide sufficient food and cover other essential expenses without requiring them to borrow.
Conclusion
Finance Minister Taiwo Oyedele’s disclosure that some Nigerian households spend up to 120 per cent of their monthly income on food has drawn attention to the continuing pressure on household budgets.
Speaking at Chatham House in London, he said a government survey found that food expenditure in some households exceeded their earnings, forcing families to borrow or depend on relatives to survive.
He also highlighted the problem of working poverty, noting that having a job does not necessarily mean a person earns enough to afford basic necessities.
The minister attributed high food costs to structural challenges in agriculture, including low productivity, seasonal farming, post-harvest losses, inadequate storage, transportation expenses and insecurity.
He said the government was responding through agricultural investments, improved irrigation and storage, access to finance for farmers and cash transfers that had reached more than 10 million households.
Ultimately, the challenge for the government will be to ensure that economic reforms deliver tangible improvements in food affordability and household incomes.
Until families can meet their basic needs without routinely borrowing or relying on relatives, the cost of living will remain a central test of Nigeria’s economic recovery.
