The 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, highlighting the financial pressure facing families struggling to meet basic living expenses.
Oyedele made the disclosure while speaking at Chatham House in London, where he cited a government survey indicating that some households spend more on food than they earn.
According to the minister, families in this position may have to borrow money or obtain food on credit to survive until the end of the month.
The figure illustrates the strain that high food costs can place on household budgets, particularly among low-income earners whose earnings leave little room for other essential expenses.
Oyedele also drew attention to the contrast between Nigeria’s reported unemployment rate of about five per cent and a poverty rate exceeding 50 per cent, arguing that the number of people in work does not necessarily reflect their ability to afford basic necessities.
Employment does not always mean financial security
The minister’s remarks highlight the distinction between having a job and earning enough to meet the cost of living.
People may be employed but remain poor if their earnings are insufficient to cover food, housing, transport, healthcare, education and other essential needs.
Where food consumes most or more than all of a household’s income, families may be forced to borrow, draw down savings, reduce meal quality or cut spending on other necessities.
Such pressures can weaken household resilience and make families more vulnerable to unexpected expenses, income disruptions and further increases in prices.
The 120 per cent figure, as cited by Oyedele, appears to describe the experience of some households rather than the average spending pattern across the country. The supplied report did not provide the survey’s sample size, methodology or period of collection.
Cost-of-living pressure remains a major concern
Food affordability remains central to Nigeria’s wider economic debate because food represents a significant part of household expenditure, particularly for poorer families.
When food prices rise faster than incomes, households lose purchasing power even if they remain employed. This can deepen poverty and reduce spending on other goods and services.
The minister’s comments also point to the limitations of using the unemployment rate alone to assess economic welfare. Employment figures need to be considered alongside income levels, job quality, underemployment and the cost of essential goods.
For government policy, the challenge is not only to create jobs but also to improve real incomes and ensure that economic growth translates into better living conditions.
Measures that strengthen food supply, reduce avoidable distribution costs, improve productivity and support household earnings could help ease the pressure, although the impact would depend on their design and implementation.
Oyedele’s disclosure adds to the debate over the extent to which Nigeria’s economic reforms are improving the daily lives of households, especially those already spending most of their resources on food.
