Nigeria’s Food Import Bill Hits $1.19bn In 6 Months Despite Push For Local Production

Nigeria spent $1.19billion on food imports in the first half of 2026, an increase of $121.52million or 11.41 per cent from the $1.07billion recorded in the corresponding period of 2025, as the country continued to depend on foreign food supplies despite government efforts to boost domestic production.

An analysis of the Central Bank of Nigeria’s (CBN) Quarterly Statistical Bulletin for the second quarter of 2026 showed that foreign exchange (forex) utilisation for food imports increased in five of the six months under review, with only February recording a year-on-year decline.

The figures highlight the sustained demand for foreign exchange to finance food imports and the challenges facing efforts to reduce Nigeria’s dependence on imported food.

A breakdown of the data showed that forex spending on food imports rose to $232.05million in January 2026 from $213.11million in January 2025, representing an increase of 8.89 per cent.

However, spending fell by 22.90 per cent in February to $150.87million from $195.68million recorded in the corresponding month of the previous year.

The decline was short-lived, as spending recovered to $153.73million in March 2026 from $141.30million in March 2025.

The sharpest year-on-year increase occurred in April, when forex utilisation surged by 54.28 per cent to $217.74million from $141.13million in April 2025.

The upward trend continued in May, with spending rising by 8.59 per cent to $220.26m from $202.83million, while June recorded a 23.92 per cent increase to $212million from $171.08million in the corresponding month of the previous year.

The figures showed that higher spending between April and June more than offset the decline recorded in the first quarter, pushing the total food import bill higher in the first half of the year.

On a quarterly basis, forex utilisation for food imports declined by 2.57 per cent in the first quarter of 2026 to $536.65million from $550.79million recorded in the corresponding period of 2025.

However, spending rose sharply in the second quarter, increasing by 26.38 per cent to $650million from $514.34million in the same period of the previous year.

The second-quarter surge accounted for the overall increase in food import spending during the six-month period, reflecting a renewed rise in demand for foreign food supplies after the first-quarter decline.

The development comes as the federal government pursues agricultural policies aimed at increasing domestic food production and reducing reliance on imports.

However, industry stakeholders have identified insecurity, abandoned farmlands and low adoption of modern farming technology as major constraints to improving local agricultural output.

The President of the Association of Small Business Owners of Nigeria, Femi Egbesola, recently attributed the country’s continued dependence on imported food to insecurity and inadequate technological adoption in agriculture.

He said insecurity had forced many farmers to abandon their farmlands, disrupting the supply of agricultural produce to manufacturers and other users of local farm products.

“Most of the farmers are no longer on the farms because of insecurity. Many farmlands have been deserted. That is where the primary products come from. It is when the farmers plant and harvest. That is when the manufacturers and other users can buy from them and use them as their inputs. This time, many of the farms are deserted,” Egbesola said.

He added that Nigeria’s agricultural productivity remained below global standards because many farmers continued to rely on outdated tools and farming practices.

Egbesola urged the government to integrate technology into agriculture, improve access to modern equipment for smallholder farmers and invest in mechanisation to close the production gap.

The Emir of Kano, Muhammadu Sanusi II, has also warned that policies allowing large-scale food imports could undermine domestic agricultural production and threaten long-term food security.

Sanusi said Nigeria’s decision to open its market to imported food, including rice from Thailand, had weakened local rice mills and left banks struggling with bad loans linked to investments in the agricultural value chain.

According to him, although food imports helped reduce prices following the removal of the petrol subsidy, the policy also exposed local producers to competition that threatened their businesses.

He called on the government to support poor households without undermining domestic farmers and agricultural businesses through excessive dependence on imported food.

The emir spoke at the Sustainable Table Series held at the Federal Palace Hotel, Victoria Island, Lagos, on Thursday, where he stressed the need for governments to prioritise nutrition, education, infrastructure and productive investment as part of efforts to improve economic development.

Sanusi argued that making food affordable for low-income households should not come at the expense of domestic production, adding that the government could protect vulnerable citizens while supporting local farmers and businesses.

The latest CBN figures underscore the challenge facing Nigeria’s drive for food self-sufficiency, as rising foreign exchange spending on food imports persists despite efforts to strengthen domestic agricultural production.