Key Points
- Nigeria spent $689.88 million on food imports in Q1 2024, making up 17% of total foreign exchange (FX) spending on imports. This is a 40% increase from the previous quarter.
- Data from the Central Bank of Nigeria (CBN) shows that Nigeria used over $4 billion on total imports, with the industrial sector being the top spender at $1.94 billion.
- With rising food prices and a 25% increase in imported food inflation, officials and organizations debate whether to import more food immediately or boost local farming to become self-sufficient.
Nigeria used about $689.88 million to import food in the first quarter of 2024. This amount is 17% of the total foreign exchange (FX) used for all imports.
This information comes from the CBN’s quarterly report.
In total, Nigeria spent a bit over $4 billion on imports during this time.
Details from the Data
The CBN data shows a 40% increase in FX spent on food imports, rising from $493.24 million in late 2023 to $689.88 million in early 2024.
Compared to the same period last year, there was a slight 2% increase from $677.61 million.
Food companies were the second-highest spenders on imports.
Top of the list were companies in the industrial sector, spending $1.94 billion.
Manufacturing firms spent $594.63 million, and oil and gas companies spent $522.90 million on imports in Q1 2024.
The agricultural sector spent the least, using $35.52 million for imports.
25% Rise in Imported Food Inflation
In the first quarter of 2024, the inflation rate for imported food in Nigeria rose by 25%, according to data from the National Bureau of Statistics (NBS).
Imported food inflation went up from 26.29% in January 2024 to 32.89% in March 2024.
In January, the inflation rate for imported food was already high at 26.29%.
By February 2024, the rate jumped to 29.81%, an increase of 3.52% points.
This trend continued in March, with the rate reaching 32.89%, up by 3.08% points from February.
Overall food inflation also rose by 13%, from 35.41% in January 2024 to 40.01% in March the same year.
Important Points
Due to rising food prices, the Trade Union Congress (TUC) asked the Federal Government to start importing essential food items right away.
Minister of Information, Mohammed Idris, said the government is considering food imports to lower soaring food prices for now.
However, President Bola Tinubu disagrees with the importation strategy, emphasizing the need to boost local food production for self-sufficiency.
The International Monetary Fund (IMF) noted that Nigeria’s heavy reliance on imported foods is worsening the food crisis in the country and neighboring regions.
To tackle rising food costs, the government approved a 150-day duty-free window to import maize, brown rice, and wheat.
Dr. Akinwunmi Adesina, President of the African Development Bank (AfDB), criticized the plan to import food, saying it could harm Nigeria’s agricultural agenda.
Kabir Ibrahim, President of the All Farmers Association of Nigeria (AFAN), warned that duty-free food imports could undermine local maize, rice, and wheat production. He urged the government to invest in subsidies for farming tools, fertilizers, and chemicals to create a sustainable food system.
The total value of imports in Q1 2024 was N12.64 trillion, a 39.65% increase from N9.05 trillion in Q4 2023 and a 95.53% rise from N6.47 trillion in Q1 2023.
China was Nigeria’s biggest trading partner, making up 23.18% of total imports. Other key partners were India (8.46%), the United States (7.98%), Belgium (7.56%), and the Netherlands (4.68%).
Top imported items included motor spirit ordinary, gas oil, durum wheat, cane sugar meant for refineries, and other liquefied petroleum gases.
The NBS report also noted that Nigeria’s food and beverage import bill jumped by 30% from N1.21 trillion in Q4 2023 to N1.59 trillion in Q1 2024.
Compared to Q1 2023, food and beverage imports increased by 115%.
From January to March 2024, food and beverage imports made up about 12.59% of all imports, slightly up from 11.4% in Q1 2023.