Nigeria’s Surging Food Import Costs Amidst Economic Challenges

Nigeria imported $1.87 billion worth of food in early 2024, a significant increase from 2023, reflecting 14.37% more in foreign exchange allocations. Monthly allocations varied widely, especially notable increases in July, August, and September, emphasizing ongoing reliance on imports despite local agricultural initiatives.

The Central Bank of Nigeria (CBN) has reported that the country expended $1.87 billion on food imports during the first nine months of 2024. This marks an increase of $235.11 million from the $1.64 billion spent in the same timeframe of 2023, reflecting a 14.37% rise in foreign exchange allocations for food imports to meet domestic demand.

Throughout 2024, the monthly foreign exchange allocations for food imports demonstrated significant fluctuations. In January, allocations decreased by 33.08%, falling from $245.69 million in 2023 to $164.43 million. Conversely, February saw a notable surge, with allocations nearly doubling to $303.91 million from $163.57 million the prior year.

The latter half of 2024 witnessed substantial increases in forex spending on food imports. July experienced a remarkable rise of 158.82%, with allocations increasing to $149.91 million from $57.91 million in 2023. Similarly, August recorded an even steeper escalation of 188.51%, reaching $275.04 million from $95.33 million. September also showed growth, with a 74.13% increase to $208.68 million from $119.87 million in the previous year.

Despite the fluctuations in forex allocations, the total expenditure on food imports for 2024 exhibited a significant increase. This reliance on imported food persists, which is indicative of ongoing challenges within Nigeria’s agricultural sector, despite initiatives aimed at enhancing local agricultural production.

In conclusion, Nigeria’s expenditure on food imports has notably increased, reflecting a growing demand and continued dependence on foreign products. The fluctuations in monthly foreign exchange allocations highlight the volatility in the import market, underscoring the pressing issues within the agricultural sector that hinder local production capabilities. The findings suggest a need for more effective strategies to bolster domestic agriculture and reduce import dependency.

Original Source: osundefender.com