The Central Bank of Nigeria (CBN) disbursed $689.88 million (equivalent to N903.95 billion at the official exchange rate of N1,309/$ as of March 31, 2024) to Nigerians for food imports in the first quarter of 2024.
During the first six months of 2024, the volume of food imports into Nigeria increased by 16.37%.
According to the National Bureau of Statistics (NBS) monthly Consumer Price Index data, the average price index for imported food rose from 692.6 points in January 2024 to 806.0 points in June 2024. Month-on-month, imported food inflation jumped to 36.38% in June 2024 from 34.83% in May 2024, a 1.55% increase, as the naira weakened following the unification of all forex exchange market segments by the CBN.
The unification process in June 2023 aimed to create a more transparent and efficient foreign exchange market, resulting in significant naira depreciation. Further analysis showed that imported inflation has increased consecutively for over four years, driven by both internal and external factors.
Data from the NBS on imported food inflation from January to June 2024 reveals a steady increase in costs. In January, Nigeria recorded an imported inflation rate of 26.29%, which increased to 29.81% in February, marking a notable jump of 3.52%. The trend continued with 32.89% in March, 34.01% in April, 34.83% in May, and 36.38% in June.
Despite the overall upward trend, the rate of increase in inflation showed signs of gradual deceleration from March to May before picking up again in June.
Recently, the Federal Government approved a 150-day duty-free window for importing maize, husked brown rice, and wheat to tackle rising inflation, suspending duties, tariffs, and taxes for these imports through land and sea borders.
However, African Development Bank President Dr. Akinwunmi Adesina criticized the government’s plan to import food, stating that Nigeria cannot rely on food imports to stabilize prices and that it could harm the country’s agricultural policy.
Nigeria’s inflation rate in June 2024 surged to 34.19% from 33.95% in May 2024. The headline inflation rate in June 2024 was 11.40 percentage points higher than June 2023, rising from 22.79%. Month-on-month, the headline inflation rate in June 2024 was 2.31%, an increase of 0.17% from May 2024’s rate of 2.14%.
Quarterly statistics from the CBN show that Nigeria imported significant amounts of food despite being known as the food basket of Africa. An analysis revealed that Nigerians spent $689.88 million on food imports between January and March 2024, a 1.77% increase from $677.61 million in the same period the previous year.
The high food import bill remains a concern for the government, which has been trying to boost local production to reduce dependence on imports.
However, challenges such as inadequate infrastructure, insecurity, and climate change have hindered progress in the agricultural sector.
