Nigerians now spend 120% of income on food – Oyedele
The Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, has said some Nigerians spend as much as 120 per cent of their income on food, forcing them to borrow money or rely on relatives to survive. Oyedele spoke at Chatham House in London, where he said a government survey showed that food […]
Nigerian Finance Minister Taiwo Oyedele revealed that some individuals in the country spend up to 120 percent of their income on food, leading them to borrow money or seek assistance from relatives. This startling statistic was disclosed during a presentation at Chatham House in London, where Oyedele highlighted a government survey indicating that food expenses surpassed household incomes for certain families.
The minister emphasized that Nigeria's poverty rate remains above 50 percent, despite an unemployment rate of around five percent. This situation underscores the challenges faced by working individuals who still struggle to meet their basic needs.
Oyedele attributed the burden on households to soaring food prices, which have not kept pace with overall inflation. In September, food inflation was recorded at 19.6 percent, significantly outstripping headline inflation. This disparity exacerbates inequality, as macroeconomic stability offers little relief to those who continue to grapple with food insecurity.
The minister further pointed out that the root causes of high food prices include low agricultural yields, seasonal farming practices, post-harvest losses, poor storage and logistics, high transportation costs, and insecurity in farming regions. He provided a sobering example of the challenges in the agricultural sector, citing losses of up to 60 percent for tomatoes after harvest.
To address these pressing issues, Oyedele announced that the government is investing in agricultural technology, irrigation systems to facilitate year-round farming, and improved storage facilities. The administration is also extending direct support through a cash transfer program, which has benefited over 10 million households.
These payments are processed digitally, verified using National Identification Numbers to minimize leakage. Oyedele's strategy focuses on prioritizing agriculture and non-tradable services, sectors that together employ 81.4 percent of working Nigerians. His goal is to accelerate growth in these areas compared to the overall economy, thereby increasing incomes and gradually diminishing reliance on cash transfers.
Written by urgent.news from Daily Trust's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
