Nigeria risks widespread poverty as households prioritise food over education, savings

Nigeria is presently facing the risk of widespread poverty in the country, following the current situation where households are focusing more on providing food for their families over education and savings.

A new report by PiggyVest, an online savings platform, shows that 83 per cent of Nigerian households are prioritising food over education, healthcare, as well as savings and investments.

According to the report, only a paltry 14 per cent of the households surveyed consider education as a top priority, 18 per cent see healthcare as a top priority, while 24 per cent see childcare as their top priority.

There was no mention of savings and investment.

Last year, the Central Bank of Nigeria (CBN) released a report that households are spending 55 per cent of their income on food.

The CBN, in the report titled *Household Expectation Survey*, published on its website, said many Nigerians intend to cut down on items that are not essential and plan to spend 54.9 per cent of their income on food items, 35.4 per cent on education, 30.2 per cent on transportation, 20.0 per cent on electricity, and 12.2 per cent on medical expenses.

The CBN report also showed that Nigerians do not intend to spend on investment, such as acquiring landed properties or other forms of investments. They equally do not plan on saving their incomes.

Implications of Prioritising Food Over Other Needs

The focus on food by households is simply a reflection of the level of food insecurity and hunger in the land. The National Bureau of Statistics (NBS) reports that food inflation as of November 2024 was 39.93 per cent, and the headline inflation was 34.60 per cent.

For many Nigerians, it has been a game of survival. With purchasing power drained by skyrocketing inflation, the people are barely surviving.

The implication of the focus on just getting something to eat, with little or no thought for the education of the children, healthcare, and savings, is that families may be trapped in a cycle of poverty.

When earnings are consumed by basic necessities, there is little room for investment in skills or assets that could improve the economic situation of the household over time.

Poor educational opportunities can hinder personal and professional development, while inadequate healthcare can lead to higher morbidity and mortality rates.

Economic Consequence

Analysts believe that Nigeria may also be preparing the ground for stifled economic growth. They say when a significant portion of the population is unable to invest in education and health, it can lead to a less skilled workforce. This can stifle innovation and productivity, ultimately hindering economic growth.

“The practical implication is that the economy will stagnate because savings are required for investments while education is key to improved productivity,” according to the Lead Director, Centre for Social Justice (CSJ), Barr. Eze Onyekpere.

He said an unhealthy population will definitely experience declining productivity. “It is about poverty, which needs not just alleviation but eradication,” he said.

On his part, a Professor of Accounting and Financial Development, Lead City University, Ibadan, Professor Godwin Oyedokun, said the trend of families not investing could put a strain on public services.

According to him, “Increased reliance on food spending can lead to a higher demand for public services in healthcare and education. If families cannot afford private options, the burden on government services may increase, potentially leading to overcrowded facilities and strained resources.”

Solutions

He said addressing these implications requires a multifaceted approach, including economic policies that promote job creation, improve access to education and healthcare, and enhance social safety nets for vulnerable populations.