Some Nigerian households are now spending up to 120 per cent of their total income on food alone, forcing millions into severe debt or reliance on relatives to survive, according to the Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele. ​Speaking during an address at Chatham House in London, Oyedele revealed the findings of a recent government survey that highlighted the depth of the country’s cost-of-living crisis.
Questioning how families manage under such extreme financial strain, the minister observed that households are routinely forced to borrow food before the end of the month just to meet basic sustenance needs. ​Oyedele drew attention to a growing divergence between national employment statistics and poverty levels. While Nigeria maintains a relatively low headline unemployment rate of around five per cent, a figure comparable to Western nations like the United Kingdom, the national poverty rate remains above 50 per cent.
He emphasized that policymakers must recognize the reality of the “working poor,” noting that gainful employment no longer protects citizens from severe economic distress. ​The minister pointed out that macroeconomic metrics offer little comfort to ordinary citizens struggling to afford basic commodities. Although headline inflation has shown signs of easing, food inflation stood at 19.6 per cent in September, meaning essential food prices are not falling as quickly as broader economic indicators.
Oyedele noted that headline inflation is falling faster than the price of a standard market basket containing staples such as tomatoes, gari, and beans, a disconnect that continues to widen socioeconomic inequality. ​Attributing persistent food inflation to structural inefficiencies in the agricultural sector, Oyedele highlighted low crop yields, seasonal farming limitations, inadequate logistics, high transport costs, and ongoing security concerns in farming regions.
He noted that Nigeria loses up to 60 per cent of its tomato production to post-harvest decay, emphasizing that targeted investments in storage infrastructure and rural transportation are critical to stabilizing food prices. ​Outlining the federal government’s policy intervention plan, Oyedele stated that efforts are underway to expand agricultural productivity through modern farming technologies, year-round irrigation systems, improved rural road networks, and enhanced security for agricultural communities.
In tandem with supply-side measures, the government is expanding its direct financial support programs, providing digital cash transfers to over 10 million households verified through their National Identification Numbers (NIN), while simultaneously broadening access to credit for smallholder farmers and small businesses to stimulate job creation.
