Nigeria’s Finance Minister and Coordinating Minister of the Economy, Taiwo Oyedele, has disclosed that some households spend as much as 120 per cent of their monthly income on food, forcing families to borrow money or rely on other sources of support to meet their basic needs.
Oyedele made the disclosure while speaking at Chatham House in London, where he discussed the country’s economic challenges and the pressure rising food costs continue to place on households.
According to the minister, a government survey found that food expenditure in some households exceeds their monthly earnings, leaving families with little choice but to borrow, depend on relatives or reduce spending on other essential needs.
He described the situation as evidence of the financial difficulties confronting Nigerians whose earnings have become insufficient to cover basic living expenses.
The disclosure highlights the strain on household budgets amid persistent concerns about food affordability, purchasing power and the wider cost-of-living crisis.
Food Costs Outpace Household Earnings
Explaining the findings, Oyedele questioned how families could spend more than their total income on food without relying on borrowing or other forms of financial assistance.
He said the survey showed that some households were effectively borrowing to sustain their consumption before the end of the month.
The situation points to a growing challenge for families struggling to balance food expenditure with other essential costs, including transportation, healthcare, housing and education.
When food consumes a household’s entire income, even a relatively small unexpected expense can create further financial pressure.
Families may also be forced to postpone medical treatment, reduce educational spending or accumulate debt to meet immediate needs.
The minister’s comments also draw attention to the difficulties facing working Nigerians whose employment does not necessarily translate into sufficient income to afford basic necessities.
Structural Challenges Behind Food Inflation
Oyedele identified several structural challenges contributing to persistent food inflation in Nigeria.
These include low agricultural productivity, seasonal production patterns, inadequate storage facilities, post-harvest losses, high transportation costs and insecurity affecting farming communities.
Weak logistics and storage infrastructure can increase the cost of moving agricultural produce from farms to markets, while insecurity can disrupt cultivation and limit the supply of food.
Such constraints can keep prices elevated even when broader inflation indicators begin to improve.
The minister’s remarks underline the importance of addressing agricultural production and distribution challenges alongside wider economic reforms.
Increasing food production alone may not be sufficient if farmers and traders continue to face difficulties transporting, storing and distributing their goods efficiently.
Improved rural roads, irrigation, modern farming techniques and better storage infrastructure could help reduce losses and strengthen the supply chain.
Government Outlines Measures to Ease Pressure
Oyedele said the Federal Government was pursuing measures intended to improve food availability, support vulnerable households and strengthen agricultural production.
These include investments in agricultural technology, irrigation, storage facilities and rural infrastructure, alongside efforts to improve security in farming communities.
He also highlighted government support programmes designed to provide financial assistance to eligible households.
However, the scale of the challenge means that the effectiveness of such interventions will depend on their implementation, reach and ability to deliver measurable improvements in household purchasing power.
For families already spending more than they earn on food, immediate relief remains a pressing concern.
The minister’s disclosure reinforces the gap between improvements in selected economic indicators and the everyday experiences of Nigerians struggling to afford basic necessities.
It also highlights the importance of ensuring that economic growth and stabilisation policies translate into tangible improvements in living standards, particularly for low-income households.