The Central Bank of Nigeria (CBN) has released $547.7 million (N823.19 billion) for the importation of food items in the second quarter of 2024, a notable reduction from the $689.88 million disbursed in the first quarter of the year. This represents a 20.6% decline in dollar terms and an 8.93% reduction in naira, based on the official exchange rate of N1,503.3/$1 as of June 30, 2024.
Data from the CBN’s quarterly statistics bulletin reveal that a total of N1.73 trillion was allocated for food imports in the first half of the year. Specifically, $164.43 million was released in January, $303.91 million in February, and $221.54 million in March. The trend continued in Q2, with $153.27 million allocated in April, $197.21 million in May, and $197.22 million in June.
Despite the government’s efforts to stabilize food prices through a 150-day duty-free import window for essential commodities such as maize, rice, wheat, and cowpeas, food prices have continued to soar. The zero-duty import policy, announced on July 8, 2024, aimed to reduce food inflation by encouraging more food imports. However, three months into the program, the policy is yet to take off due to bureaucratic delays, particularly the failure of the Ministry of Finance to publish a list of qualified importers.
The delay in implementation has compounded the problem, with food prices escalating further. The average price index for imported food items surged to 878.3 in September 2024, up from 847.7 in August and 806.0 in July, reflecting broader economic pressures. Year-to-date, this marks a 26.81% increase from January’s index of 692.6.
At a recent press briefing, the Minister of Finance, Wale Edun, confirmed that the government had authorized imports of maize and wheat to stabilize the market, but there has been no concrete update on whether the goods have arrived. Efforts to reach the Nigerian Customs Service for clarification have been unsuccessful.
Inflation data from the National Bureau of Statistics further underscores the gravity of the situation. The imported food inflation rate has steadily risen throughout the year, from 26.29% in January to 34.83% by May, and continuing to climb in the subsequent months.
The inability to fully implement the government’s duty-free import scheme, combined with ongoing inflationary pressures, poses a significant challenge to efforts to alleviate Nigeria’s food crisis.
