Nigerian households are spending up to 120% of their monthly income on food as prices rise, forcing many families to borrow or depend on support from relatives, Finance and Coordinating Minister of the Economy Taiwo Oyedele said.
Key takeaways
- A government survey found that food expenditure can surpass total household earnings.
- Many employed Nigerians remain poor despite having jobs, Oyedele said.
- September headline inflation stood at 14.63%, compared with food inflation of 19.59%.
- Officials are seeking macroeconomic stability, but households have yet to see meaningful relief in daily living costs.
- Economists have challenged the official inflation figures published by the National Bureau of Statistics.
Food costs outpace household incomes
Speaking recently at Chatham House in London, Oyedele said regular earnings no longer cover the basic needs of a large share of Nigerians. Families are increasingly taking on debt or relying on assistance from relatives simply to make it through each month.
He said a government-backed survey showed that food alone can absorb as much as 120% of household income, meaning some people must borrow before the month ends to buy necessities.
“We conducted a survey showing that as much as 120% of household income can go toward food. You are borrowing for food before the month is over,” he said.
The finding underscores the scale of hardship among Nigerians who have work but cannot afford an adequate standard of living, he added. “That tells you something. As a policymaker, you cannot simply sit back and say there is no unemployment. You have working poor,” Oyedele said.
Inflation gap widens pressure on consumers
Oyedele said the overall inflation rate was declining more quickly than the cost of staple foods. Headline inflation was 14.63% in September, while food inflation reached 19.59%.
“Headline inflation is coming down faster than the prices of a basket containing tomatoes, gari and beans. That deepens inequality,” he said.
Although Nigeria has made substantial efforts to restore macroeconomic stability, the benefits have not yet reached many citizens, Oyedele said. “Macroeconomic stability has little meaning for a mother who still cannot afford food,” he added.
National Bureau of Statistics data showed a decline in headline inflation in September even as food-price inflation rose sharply during the month.
Some experts have questioned the credibility of the official figures, arguing that actual inflation experienced by households is considerably higher than the data reported by the statistics agency. Financial analyst Okechukwu Unegbu has been among the leading critics of the NBS inflation measurements.
