Economists and residents have faulted the claim by the Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, that Nigerian households spend 120 per cent of their income on food alone, describing the figure as exaggerated and disputable.
Oyedele made the assertion at Chatham House in London, citing a government survey he said showed that some households spend more than they earn on food and borrow to cover the shortfall.
“In fact, there was a survey we did that shows that up to 120% of household income is spent on food,” he said.
“Like, how do you spend 120% of your income? You borrow food before the end of the month,” he said.
Oyedele said Nigeria’s poverty rate remains above 50% even though unemployment is about 5%, a combination he said points to a large population of working poor—people with jobs who still cannot afford basic necessities.
He argued that policymakers must look beyond headline indicators such as unemployment and focus on household living conditions.
“Macroeconomic stability means little to a mother who still cannot afford food,” he said.
Food inflation stood at 19.6% in September, according to the minister, who said food prices are falling more slowly than the broader inflation rate.
“Headline inflation is falling faster than the price of a basket of tomatoes, gari and beans,” Oyedele said. “And this widens inequality,” he added.
Oyedele attributed persistent food inflation to low agricultural yields, seasonal farming, post-harvest losses, inadequate storage and logistics, high transport costs and insecurity in farming communities.
He said Nigeria loses as much as 60% of its tomato production to post-harvest losses.
The government’s response, he said, centers on increasing food supply through investment in agricultural technology, irrigation, storage facilities, rural roads and security for farming communities, along with expanded financing for smallholder farmers and small businesses.
He also said the administration’s cash-transfer program has reached more than 10 million households, with digital payments verified through National Identification Numbers (NINs).
The claim, however, has drawn mixed reactions and skepticism from residents and economists, even as many agree that rising food prices are squeezing family budgets.
Tayo Bello, a law professor and development economist, welcomed the government’s acknowledgment of households’ difficulties but said higher fuel costs and the naira’s devaluation have eroded purchasing power, while insecurity has reduced food production in several states.
Some residents disputed the 120% figure.
Adedoyin Tanimowo, a public servant, and Mercy Ola, a legal practitioner, described it as exaggerated, though both said food costs have forced them to cut spending on transportation, leisure and other essentials.
Esther Folasewa, a student, said the figure may understate the burden for some families, arguing that certain households spend more than 120% of their income on food and take on debt to meet basic needs.
Owen Ogie, a resident, said many families are cutting spending on rent, healthcare and transportation to afford food.
Ogie urged the government to support local farmers, improve security and transport infrastructure, and raise incomes to keep pace with prices.
Tanimowo, for her part, called for subsidies on farm inputs, stronger security for farmers, direct farmers’ markets and better roads, electricity and water access to reduce spoilage and lower food costs.
Ola urged the government to stabilize the economy to ease pressure on household budgets.
