Nigeria’s Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, has acknowledged the severity of the country’s cost-of-living crisis, revealing that some households spend as much as 120 per cent of their income on food and are forced to borrow or depend on relatives to survive until the end of the month.
Oyedele made the disclosure while speaking at Chatham House in London, where he discussed Nigeria’s economic situation, persistent food inflation and the difficulties confronting millions of citizens despite government efforts to stabilise the economy.
According to the minister, a government survey showed that food expenditure in some households had exceeded their total income, highlighting the growing struggle of Nigerians to afford basic necessities.
“In fact, there was a survey we did that shows that up to 120 per cent of household income is spent on food. Like, how do you spend 120 per cent of your income? You borrow food before the end of the month,” he said.
The minister explained that the situation demonstrated the growing problem of working poverty, in which people who have jobs and earn incomes still cannot afford essential goods and services.
“That tells you something. As a policymaker, you don’t sit back and say we don’t have unemployment. You have working poor,” Oyedele added.
He also disclosed that Nigeria’s poverty rate remained above 50 per cent despite an unemployment rate of approximately five per cent, arguing that conventional employment figures did not fully reflect the financial difficulties faced by working Nigerians.
His comments highlight the widening gap between improvements in economic indicators and the daily experiences of households struggling to pay for food, accommodation, transportation, healthcare and education.
According to the National Bureau of Statistics, Nigeria’s headline inflation rate declined from 15.39 per cent in August to 14.63 per cent in September 2026. However, food inflation stood at 19.59 per cent year-on-year in September, slightly higher than the 19.57 per cent recorded in August.
Oyedele noted that the prices of essential food items were not easing at the same pace as headline inflation, leaving households under continued pressure.
“Headline inflation is falling faster than the price of a basket of tomatoes, gari, and beans. And this widens inequality,” he said.
“Macroeconomic stability means little to a mother who still cannot afford food,” the minister added.
Oyedele identified several structural challenges contributing to high food prices, including low agricultural productivity, seasonal farming, post-harvest losses, inadequate storage facilities, high transportation costs and insecurity in farming communities.
He cited the loss of as much as 60 per cent of tomatoes after harvest as an example of the inefficiencies affecting Nigeria’s agricultural value chain, where inadequate preservation and storage can lead to substantial waste before produce reaches consumers.
To address these challenges, the minister said the government was investing in agricultural technology, irrigation systems to support year-round farming, improved storage infrastructure and access to financing for smallholder farmers.
He also highlighted the administration’s cash transfer programme, stating that it had reached more than 10 million households. According to him, the payments were being made digitally, with beneficiaries verified through their National Identification Numbers to reduce diversion and ensure assistance reaches intended recipients.
Oyedele further argued that Nigeria’s economic difficulties were rooted in structural weaknesses rather than fuel taxation, while stressing the importance of expanding productive sectors capable of improving household incomes.
He said agriculture and non-tradable services together accounted for 81.4 per cent of working Nigerians, making their growth essential to raising earnings and reducing dependence on government support.
The minister’s remarks come amid continuing public debate over the impact of economic reforms introduced by President Bola Tinubu’s administration. Although the government has pursued measures aimed at stabilising public finances and the wider economy, many households continue to face significant pressure from the cost of essential goods and services.
A decline in the headline inflation rate does not necessarily mean that prices have returned to affordable levels. It indicates that the overall pace of price increases has slowed, while the accumulated cost of living may remain beyond the reach of households whose incomes have not kept pace.
For low-income earners, the consequences can be severe, forcing families to reduce food consumption, borrow money, depend on relatives or divert funds from healthcare and education to meet immediate food needs.
Oyedele’s admission has therefore renewed attention on the need to translate macroeconomic improvements into tangible benefits for ordinary Nigerians, particularly through policies that improve food production, reduce waste, strengthen distribution networks and increase household purchasing power.
For millions of families, the critical question is no longer simply whether inflation is declining, but whether their earnings can provide sufficient food and cover other basic necessities without resorting to debt.
