Fuel, foods lead as imports hit N12tn

In Q1 2024, Nigeria’s imports surged to N12.64tn, a 39.65% increase from Q4 2023 and a 95.53% rise from Q1 2023, driven by refined petroleum products and agricultural goods. Major trading partners included China, India, and the U.S. Despite food inflation at 40.5%, agricultural imports rose significantly. The country recorded a historic trade surplus of N6.52tn due to increased exports, particularly crude oil and agricultural products. President Tinubu plans to suspend import duties on essential items to curb inflation. Source: Punch

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The significant rise in Nigeria’s agricultural imports, totaling N920.54bn in Q1 2024, underscores the critical need for enhanced domestic agricultural production and value chain optimization. The sharp increase in imports, driven by rising food prices and inflation, highlights systemic inefficiencies and the urgency to boost local production capacities. Governor Seyi Makinde’s initiatives in Oyo State, such as the revival of Fashola Farms and investment in modern farming techniques, offer a blueprint for addressing these challenges. By integrating innovation and public-private partnerships, these efforts can significantly improve yield and reduce dependency on imports. To mitigate food inflation and ensure food security, policymakers must focus on increasing productivity through technological adoption and efficient supply chain management. Encouraging local production not only supports smallholder farmers but also stabilizes food prices, reducing the economic burden on households. Leveraging data-driven insights from such reports helps stakeholders make informed decisions, fostering sustainable growth in the agri-food sector. Enhancing infrastructure, supporting agribusiness ventures, and creating a conducive environment for private investment are vital for transforming Nigeria’s agricultural landscape.