The Central Bank of Nigeria (CBN) disbursed $547.7 million (equivalent to N823.19 billion at the official exchange rate of N1,503.3/$1 as of June 30, 2024) for food imports during the second quarter of 2024.
This amount marked a reduction of $142.48 million or 20.6 per cent compared to the $689.88 million released in the first quarter. In naira terms, it represented an 8.93 per cent decrease from N903.95 billion in Q1.
In total, the CBN allocated N1.73 trillion for food imports in the first half of 2024, based on the bank’s quarterly statistics bulletin. A breakdown showed Nigerians spent $164.43 million in January, $303.91 million in February, and $221.54 million in March. Meanwhile, $153.27 million was allocated in April, $197.21 million in May, and $197.22 million in June.
Despite the Federal Government’s efforts to reduce food prices through a zero-duty policy on selected basic food items, the initiative has faced delays. Announced on July 8, 2024, the 150-day duty-free import window was intended to lower food inflation by reducing duties on items such as maize, rice, wheat, and cowpeas. However, the program has struggled to launch due to bureaucratic hurdles, including the failure of the Ministry of Finance to release a list of qualified importers, as required by customs guidelines issued in August.
As the government delays implementation, the cost of imported food has continued to rise. The average price index for imported food items reached 878.3 in September 2024, reflecting ongoing economic pressures. According to the National Bureau of Statistics, this was a 30.6-point or 3.61 per cent increase from August, and an 8.97 per cent rise from July when the policy was announced. Since January, the price index has surged by 185.7 points, marking a 26.81 per cent increase year-to-date.
Month-by-month, Nigeria’s imported food inflation rate saw consistent growth in 2024. It rose from 26.29 per cent in January to 29.81 per cent in February, and further climbed to 32.89 per cent in March. By April, it reached 34.01 per cent, and by May, the rate stood at 34.83 per cent. The price index continued to rise, hitting 826.2 in July, 847.7 in August, and 878.3 in September.
Despite efforts to stabilise the food market, the increase in imported food prices highlights the challenges of addressing inflation amidst persistent supply shortages in Nigeria.