Central Bank of Nigeria (CBN) Governor, Godwin Emefiele, has said that the average Nigerian spends 73 per cent of their income on food and beverage products, noting that increased investment in the sub-sector would reduce the cost of living.

Emefile said this at the 37th Annual General Meeting (AGM) of Association of Food, Beverage and Tobacco Employers (AFBTE), held at the weekend in Lagos.

The governor, who was represented by Mr. Ade Adedeji, said that the expanding middle class has a disposable income that has caused increased demand of packaged goods, adding; “Government ban on importation of pasta, noodles and other consumer food items has enhanced local demand for the products. As a response, investment in the sub-sector has risen by 53.6 per cent to $49.9b in the second half of 2013, with potential for further growth of five per cent in the next five years. The growth potential is expected to create 2.5 million skilled jobs.”

President of the AFBTE and Group Managing Director (GMD) of Flour Mills of Nigeria, Paul Gbededo said the apex bank’s forex policy has adversely affected members of the association.

He added that though manufacturers are searching for local alternatives, many of the substitutes are still unavailable, hence the need for the CBN to prioritise the restriction of forex so that essential industries are not adversely affected.

Spending a large portion of one’s income on food and drink — which are needed for basic survival — is an indicator of poverty. Such a spending pattern means that little money is left over to be spent on other things that are important for quality life, including clothing, shelter and transportation