Nigeria’s Food Import Bill Rises To 5-year High

Nigeria’s food import bill has reached a five-year high due to the ongoing food price crisis. The country’s food inflation rate  surged to 40.5 per cent in April this year, with rice prices increasing by 169 per cent in the past year alone.

This sharp rise in food costs is placing immense strain on households across the country, exacerbating an already fragile economy.

Data from the National Bureau of Statistics, shows the value of agricultural goods imported in the first quarter of 2024 was N920.54 billion, representing a 29.45 per cent increase from the previous quarter and a 95.28 per cent rise compared to the same period in 2023.

This significant increase in food imports is largely attributed to the government’s decision to suspend the payment of import duties on staple food items, drugs, and other essential items for an initial period of six months to curb inflation.

The food crisis has also led to a surge in the importation of other essential goods, including refined petroleum products and chemicals. The total import bill for these goods stood at N12.64 trillion in the first quarter of 2024, a significant increase from the N9.27 trillion recorded in the same period last year.

The rising cost of living in Nigeria is increasing at its fastest rate in nearly 30 years, with global pressures, the cancellation of the fuel subsidy, and the devaluation of the naira all contributing to the inflation crisis. The situation has led to widespread protests and calls for government intervention to address the crisis.

In March 2024, as part of the federal government’s efforts to curb the worsening food crisis, President Bola Ahmed Tinubu stated that Nigeria would not succumb to food importation to stabilise prices.

He emphasised that the government would not allow the importation of food but rather turn the lack in the country into abundance.

Meanwhile, the country’s food inflation soared to record highs of 40.5 percent in April, reflecting a 15.92 percent increase year-on-year, with many people now hungry and incapable of affording a balanced diet.

The NBS Foreign Trade Statistics report shows that the value of food received into the country through maritime, planes, vehicles and other mediums surged 29.4 per cent from N711.4 billion expended in Q4 2023.

“The major agricultural goods imported in Q1 2024 included durum wheat (not in seeds) from Canada with N130.26 billion and Lithuania with N98.63 billion,” the NBS said.

It added that this was followed by blue whitings (micromesistius poutassou, micromesistius australis) meat, frozen from the Netherlands valued at N16.67 billion.

The combined value of wheat importation in the period was N519.75 billion.

The average costs of Nigeria’s wheat importation – a major driver of the food import value in the period under review, increased 33 per cent compared to its value last quarter (N391.01 billion).

Nigeria continues to increase its importation of wheat as its derivatives remain popular food choices among consumers amid the surge in the prices of close substitutes – garri and rice.

Total imports for Q1 2024 stood at N12.64 trillion representing a 39.65 per cent increase from N9.05 trillion in Q4 2023 and a 95.53 per cent rise from N6.47 trillion in Q1 2023.

The value of food imports accounted for 7.3 per cent of total imports in the quarter under review.

Going by country, Nigeria imported goods mostly from Asia, China, Europe, America and Africa, among others.

“The top-ranked group import was mineral fuels with N4,436.59 billion representing 35.09 percent of total imports.

This was followed by machinery and transport equipment with N3,170.35 billion, contributing 25.08 per cent to total imports and chemicals & related products amounting to N1,786.43 billion (14.13 per cent of total imports),” the NBS said in its report.