The Central Bank of Nigeria recently disclosed that $547.7 million was released to Nigerians for the importation of food items in the second quarter of 2024. This amount represents a decrease from the previous quarter. Data from the bank’s quarterly statistics bulletin indicates that a total of N1.73 trillion was released for food importation in the first six months of the year.
Despite efforts by the Federal Government to reduce food prices by implementing zero duty on selected basic food items, challenges persist. The average price of imported food items has been on the rise, reaching 878.3 in September 2024, reflecting broader economic issues.
A duty-free import window for food commodities was announced by the government to combat food inflation. However, the initiative has faced delays due to bureaucratic processes and issues with the publication of a list of qualified importers.
Despite plans to stabilize the food market through imports of maize and wheat, there has been a delay in the implementation of the policy. As a result, the price of imported food continues to climb, contributing to an increase in inflation rates.
The imported food inflation rate has been steadily rising month by month, indicating a growing reliance on foreign food products amidst local food supply shortages. This trend underscores the challenges faced in the food sector and the need for effective policy implementation to address them.