The Central Bank of Nigeria has released a total of N1.73 trillion for food imports within the first half of the year.
The PUNCH reported that this information was disclosed in the CBN’s quarterly statistics bulletin.
In the second quarter of 2024, the Central Bank of Nigeria allocated $547.7 million, N823.19 billion, based on the official exchange rate of N1,503.3/$1 as of June 30, 2024, for food imports, a marked decrease from the $689.88 million released in the first quarter of the year.
This decline amounts to $142.48 million or 20.6%, and when converted to naira, represents a reduction of N80.76 billion or 8.93% from the N903.95 billion recorded in the first three months of 2024.
A deeper look into the monthly figures reveals that in the first quarter of 2024, $164.43 million was spent in January, $303.91 million in February, and $221.54 million in March.
In the second quarter, the CBN released $153.27 million in April, followed by $197.21 million in May, and another $197.22 million in June.
Meanwhile, efforts by the Federal Government to curb rising food prices through the implementation of a zero-duty policy on select food imports have been slow to materialize.
Announced on July 8, 2024, the 150-day duty-free import window, intended to reduce inflation on food items such as maize, brown rice, wheat, and cowpeas, has faced significant challenges.
The policy aimed to reduce import duties and value-added tax to facilitate increased food imports and lower consumer prices, but three months after its introduction, the programme is yet to be fully operational.
The delay is largely attributed to bureaucratic bottlenecks and the failure of the Federal Ministry of Finance to publish a list of approved importers, a requirement issued by the Nigerian Customs Service in August.
During a press conference earlier in October, Finance Minister Wale Edun confirmed that the government had ordered imports of maize and wheat to help stabilize the food market, but the awaited imports are yet to arrive.
Efforts to contact the National Public Relations Officer of the Nigerian Customs Service, Abdullahi Maiwada, for confirmation were unsuccessful.
In the meantime, imported food prices have continued their upward climb.
The National Bureau of Statistics disclosed that the price index for imported food items surged to 878.3 in September 2024, a 30.6-point increase from 847.7 in August.
Since the duty-free import window was announced in July, when the price index stood at 806.0, the average price of imported food has increased by 72.3 points, or 8.97%.
On a year-to-date basis, the food price index has risen sharply by 185.7 points or 26.81% since January 2024, when the index stood at 692.6.
This points to the persistent dependence on foreign food products amidst ongoing domestic supply challenges.
A closer look at the inflation figures reveals a consistent upward trend in imported food prices throughout the year.
In January 2024, the imported food inflation rate was recorded at 26.29%, which jumped to 29.81% in February, a 3.52% increase.
March saw an even sharper rise, with the inflation rate reaching 32.89%, marking a 3.08% increase from February.
The rate continued to climb in April, albeit at a slower pace, reaching 34.01%, a 1.12% rise. In May, the inflation rate stood at 34.83%, increasing by 0.82% from the previous month.
The monthly figures for the price index show an upward trajectory: 806.0 in June, 826.2 in July, 847.7 in August, and 878.3 by September, underscoring the inflationary pressures on imported food items in Nigeria, despite government interventions.
