…Says Workers Borrow To Survive As Rising Food Costs Outpace Inflation Decline
Daud Olatunji
Nigerian households are spending as much as 120 per cent of their income on food amid rising prices and declining purchasing power, the Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, has said.
Oyedele disclosed this while speaking at Chatham House in London, where he acknowledged that the earnings of many Nigerians could no longer cover their basic food needs, forcing some households to borrow money or depend on relatives to survive until the end of the month.
According to the minister, a government survey revealed that some households spend more than their monthly income on food, highlighting the growing pressure on families struggling to cope with the rising cost of living.
“In fact, there was a survey we did that shows that up to 120 per cent of household income is spent on food. You borrow food before the end of the month,” Oyedele said.
He warned that policymakers must look beyond conventional economic indicators when assessing the welfare of Nigerians, noting that having a job does not necessarily mean a worker earns enough to meet basic needs.
“That tells you something. As a policymaker, you don’t sit back and say we don’t have unemployment. You have working poor,” he added.
The minister’s remarks underscore the gap between employment and economic well-being, as some Nigerians with regular incomes continue to struggle to afford food, housing, transportation and other essential needs.
Oyedele also expressed concern that food prices were declining more slowly than the broader inflation rate, a development he said was worsening inequality and limiting the benefits of economic reforms for ordinary citizens.
He noted that headline inflation stood at 14.63 per cent in September, compared with food inflation of 19.59 per cent, indicating that food prices continued to rise faster than the general inflation rate.
“Headline inflation is falling faster than the price of a basket of tomatoes, gari, and beans. And this widens inequality,” he said.
The minister acknowledged that despite efforts to stabilise the economy, many Nigerians were yet to experience meaningful improvements in their daily lives.
“Macroeconomic stability means little to a mother who still cannot afford food,” he added.
His comments highlight the challenge facing policymakers as they seek to translate improvements in headline economic indicators into tangible relief for households grappling with high food prices and shrinking disposable incomes.
Although a decline in headline inflation may indicate a slowdown in the overall rate of price increases, it does not necessarily mean that food prices have returned to affordable levels or that households can now purchase more with their earnings.
For families whose incomes have failed to keep pace with the cost of essential commodities, the pressure on household budgets remains significant.
Meanwhile, concerns have also been raised over the reliability of Nigeria’s inflation figures, with some financial analysts arguing that the official data may not fully reflect the price pressures experienced by consumers.
Financial analyst Okechukwu Unegbu has been among those questioning the inflation figures published by the National Bureau of Statistics.
However, the criticisms remain claims by the analysts, and the supplied report does not provide independent evidence establishing that the official figures are inaccurate.
The latest concerns over food affordability have renewed attention on the need for policies that can improve household purchasing power, strengthen food supply chains and ensure that economic stabilisation translates into better living conditions for Nigerians.
For millions of households, the central concern remains whether their earnings can adequately cover the cost of feeding their families amid persistent economic pressures.
'
'Do you want to share a story with us? Do you want to advertise with us? Do you need publicity for a product, service, or event? Contact us on WhatsApp +2348183319097 Email: platformtimes@gmail.com
We are committed to impactful investigative journalism for human interest and social justice. Your donation will help us tell more stories. Kindly donate any amount HERE
'