Agricultural Imports Hit N907.8 Billion in 2022

The effect of global inflation on the economies of some countries has continued to bite harder with Nigeria experiencing a 17.94% increase in imported food inflation coupled with the rate of importing agricultural goods which has hit N907.8 billion in the first half of 2022.

Nigeria however, realized a meagre export value of N343.4 billion during the same period.

With the agricultural sector being the largest sector in the Nigerian economy and with the huge amount of funds pumped into the sector, citizens would raise eyebrows wondering how the industry ended up with an agricultural trade deficit of N564.4 billion.

This still shows the sector may not achieve its aim of ensuring food sufficiency as expected.

According to research data compiled by Nairalytics, food inflation in Nigeria has consistently increased in the last three months to hit an all-time high of 17.94%, a figure which is the highest ever recorded in five years.

The general inflation according to Nigeria’s Consumer Price Index, CPI report for the month of August 2022 presented by the National Bureau of Statistics, NBS was at 20.52% which is almost the highest figure recorded in 17 years.

The CPI further revealed that during the same period in review, the food inflation rate also skyrocketed to 23.12%, a figure which makes it the highest level in almost 17 years.

The report further mentioned the effects of the food index which also noticeably increased during the period.

Two critical factors were noticed as being responsible for the increase in the food index – the upward surge in prices of bread, cereals, tubers and everyday food; The Russia-Ukraine war which has caused an unbearable increase in the price of foodstuff across the world was also noted for being responsible for the huge pressure on the food index.

Despite its vast agricultural sector, Nigeria has still focused on food imports as the huge figures have revealed.

While food import is seen as a necessary activity to bridge the gap since Nigerian farmers have repeatedly shown an inability to produce enough to meet the demands of the populace, the activity has, however, made Nigeria vulnerable to the threats caused by the global economies.