Food Price Hike Looms as Nigeria’s Imports Rise

Nigeria’s agricultural sector is facing a new challenge as stakeholders predict a food price hike by mid-year 2025 due to increased food imports in 2024. The value of food imports grew by 51.06% to N3.78tn from N1.85tn in 2023, according to the National Bureau of Statistics’ Foreign Trade in Goods data. This significant increase has raised concerns among stakeholders, who warn that continuing importation to meet the country’s food availability is not sustainable and may lead to further food price hikes.

The Federal Government’s 150-day duty-free import window, announced in July 2024, aimed to reduce exorbitant food prices by making more food available. However, stakeholders, including farmers and members of the private sector, opposed the import waiver window, citing concerns about the impact on local food production. Despite the initial success of the initiative, which included the importation of 32,000 tonnes of rice from Thailand, stakeholders warn that the long-term effects of the policy may be detrimental to the country’s food security.

The significant increase in food imports has led to concerns about the impact on local food production and the country’s food security. Stakeholders warn that the continued reliance on imported food may lead to a decline in local food production, resulting in a loss of jobs and income for farmers. Furthermore, the increased demand for foreign exchange to pay for imported food may put pressure on the naira, leading to a decline in its value.

Stakeholders emphasize the need for sustainable food production in Nigeria, highlighting the importance of supporting local farmers and investing in the country’s agricultural sector. The President of the All Farmers Association of Nigeria, Kabir Ibrahim, noted that Nigeria cannot afford to rely on imported food to meet its needs, citing the country’s growing population and the need for sustainable food production. Ibrahim emphasized the importance of working within the country to produce enough food to attain food security.

The government has a crucial role to play in supporting local food production and ensuring the country’s food security. Stakeholders recommend that the government provide support to local farmers, including access to credit, inputs, and markets. Additionally, the government should invest in the country’s agricultural infrastructure, including storage facilities, roads, and irrigation systems. By supporting local food production, the government can help to reduce the country’s reliance on imported food and ensure a sustainable food supply.

The predicted food price hike by mid-year 2025 is a cause for concern, and stakeholders warn that the continued reliance on imported food may have long-term consequences for the country’s food security. To address this challenge, stakeholders recommend that the government support local food production, invest in the country’s agricultural infrastructure, and promote sustainable food production practices. By working together, stakeholders can help to ensure a sustainable food supply and reduce the country’s reliance on imported food.