Nigerians now spend 120% of income on food – Oyedele – Daily Trust

The Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, has stated some Nigerians spend as a lot as 120 per cent of their income on food, forcing them to borrow cash or rely on family to outlive.

Oyedele spoke at Chatham House in London, the place he stated a authorities survey confirmed that food bills exceeded the incomes of some households.

“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 stated.

The minister stated Nigeria’s poverty charge remained above 50 per cent regardless of an unemployment charge of about 5 per cent, pointing to the rising quantity of individuals who work however nonetheless wrestle to satisfy their fundamental wants.

“That tells you something. As a policymaker, you don’t sit back and say we don’t have unemployment. You have working poor,” he stated.

Oyedele attributed the strain on households to excessive food costs, which he stated weren’t falling as shortly as headline inflation. Food inflation stood at 19.6 per cent in September.

“Headline inflation is falling faster than the price of a basket of tomatoes, gari, and beans. And this widens inequality,” he stated.

“Macroeconomic stability means little to a mother who still cannot afford food,” he added.

The minister additionally stated Nigeria had no taxes on gasoline, arguing that the strain on family budgets was linked to deeper structural issues somewhat than gasoline taxes.

He recognized low agricultural yields, seasonal farming, post-harvest losses, poor storage and logistics, excessive transport prices and insecurity in farming communities as main components driving food costs.

He cited losses of as much as 60 per cent of tomatoes after harvest for example of the challenges going through the agricultural sector.

On measures to handle the scenario, Oyedele stated the federal government was investing in agricultural know-how, irrigation to assist year-round farming, improved storage amenities and entry to finance for smallholder farmers.

He stated the administration was additionally offering direct assist by a money switch programme that had reached greater than 10 million “In the short term, the administration is providing direct support through a cash transfer programme that has reached more than 10 million households. Payments are made digitally and beneficiaries are verified with National Identification Numbers to reduce leakage,” he stated.

Oyedele stated the federal government was prioritising agriculture and non-tradable companies, which collectively make use of 81.4 per cent of working Nigerians.

He stated the intention was to develop the sectors sooner than the general financial system, enhance incomes and step by step scale back dependence on money transfers.