The Central Bank of Nigeria allocated $1.87bn for food imports in the first nine months of 2024, representing a $235.11m increase compared to the $1.64bn recorded in the same period of 2023.

This marks a 14.37 per cent rise in foreign exchange utilisation for food imports, as captured in the CBN’s quarterly statistical bulletin for the third quarter of 2024.

A year-on-year analysis of the data reveals mixed trends across the months. In January, forex allocation dropped by 33.08 per cent from $245.69m in 2023 to $164.43m in 2024.

However, February witnessed a remarkable surge, with allocations nearly doubling to $303.91m in 2024 compared to $163.57m in the same month of 2023.

By March, allocations had declined by 17.45 per cent, settling at $221.54m compared to $268.35m in the corresponding period of 2023.

April maintained the downward trend with a 36.39 per cent fall, as forex utilisation dropped from $240.95m in 2023 to $153.27m in 2024.

In May, allocations fell by 17.23 per cent to $197.21m, down from $238.29m in 2023, while June recorded a marginal decline of 4.32 per cent, dropping to $197.22m compared to $206.13m in the previous year.

Significant growth was, however, recorded in the latter part of the review period.

Allocations in July surged by 158.82 per cent to $149.91m compared to $57.91m in 2023.

August saw an even larger increase, with forex utilisation climbing by 188.51 per cent to $275.04m, up from $95.33m in 2023.

In September, allocations rose by 74.13 per cent to $208.68m, compared to $119.87m in the same month of 2023.

Month-on-month trends in 2024 also highlighted fluctuations in forex utilisation. Allocations grew sharply by 84.85 per cent between January and February, rising from $164.43m to $303.91m.

However, a 27.10 per cent drop was recorded in March, with allocations falling to $221.54m.

By April, forex utilisation had declined further by 30.83 per cent, settling at $153.27m.

A recovery was observed in May with a 28.70 per cent increase to $197.21m, while June remained stable at $197.22m.

July saw a significant 24.00 per cent decline to $149.91m, but allocations rebounded in August with an 83.52 per cent increase to $275.04m, before dropping again by 24.12 per cent to $208.68m in September.

The increase in total forex allocation for food imports in 2024 underlines Nigeria’s persistent reliance on imported food despite efforts to boost local production.

The National Bureau of Statistics recently reported that Nigeria’s food inflation continued to surge, reaching 39.84 per cent on a year-on-year basis in December 2024, compared to 33.93 per cent in December 2023.

The rise was attributed to increases in the prices of staples such as yams, rice, maize, and dried fish.

Despite this, food inflation on a month-on-month basis eased slightly to 2.66 per cent from 2.98 per cent in November, driven by price reductions in items like local beer, soft drinks, and tubers.

For food inflation, Sokoto led the figures with a staggering 57.47 per cent year-on-year, while Zamfara and Edo followed with 46.39 per cent and 46.32 per cent, respectively.

Conversely, Yobe, Kano, and Abuja recorded month-on-month declines in food inflation.

The data highlights the relentless upward trajectory of food inflation throughout 2024.

The Federal Government’s attempt to address the situation through a duty waiver on imported food has been fraught with delays.

In July 2024, the Federal Government announced a 150-day duty-free import window for food commodities as it stepped up efforts to tackle rising inflation, which had impoverished many Nigerians.

The commodities include maize, husked brown rice, wheat and cowpeas. Under this arrangement, imported food commodities will be subjected to a Recommended Retail Price.

It was designed to reduce import costs and make staple foods more affordable. However, the implementation has stalled due to bureaucratic delays.