Month-over-month, imported food inflation increased to 36.38 percent in June 2024 from 34.83 percent the previous month. This is a 1.55 percent increase as a result of the naira weakening after the CBN unified all currency exchange market sectors.
The unification process in June 2023 caused the value of the naira to plummet sharply in an effort to create a foreign exchange market that is more transparent and efficient.
Subsequent examination revealed that, mostly due to both internal and external factors, import inflation has been rising steadily for more than four years.
The NBS’s data on the inflation of imported food from January to June 2024 shows a concerning and consistent rise in prices. Nigeria’s import inflation rate was 26.29 percent in January. In February, this rose to 29.81 percent, indicating a significant increase in the inflation rate of 3.52 percent from January.
March saw a continuation of the trend, with the rate of inflation for imported food rising to 32.89 percent—a 3.08 percent increase from February.
The rate of inflation grew by 1.12 percent from March to 34.01 percent in April, indicating a small slowdown in the rate of increase.
The rate of inflation for imported food was 34.83 percent in May, demonstrating a persistent upward trend. The rate of inflation has increased by 0.82 percent since April.
The rate of inflation for imported food increased by 1.55 percent from May to 36.38 percent by June.
Even though the overall trend is rising, there is evidence that the rate of inflation increased from March to May before increasing once more in June.
To combat growing inflation, which has left many Nigerians penniless, the Federal Government has approved a 150-day duty-free window to allow the importation of maize, husked brown rice, and wheat.
As a result, the government stopped imposing taxes, levies, and tariffs on the import of specific food items across land and maritime boundaries.
The federal government’s intention to import food has drawn criticism from Dr. Akinwunmi Adesina, President of the African Development Bank, who called the policy “depressing.” He asserts that Nigeria cannot depend on food imports to keep prices stable and that doing so would undermine the nation’s agriculture strategy.
Additionally, Kabir Ibrahim, National President of the All Farmers Association of Nigeria, stated that the loss of advances made in local maize, rice, and wheat production will result from the duty-free importation of food goods.
In order to establish a sustainable food system in the nation, he urged governments to invest through the provision of subsidies on inputs like machinery, fertilizer, and chemicals.
Nigeria had a sharp increase in inflation from 33.95 percent in May 2024 to 34.19 percent in June of that same year. After climbing from 22.79 percent in June 2023 to 11.40 percent in June 2024, the headline inflation rate was higher.
The headline inflation rate increased by 0.17 percent from 2.14 percent in May 2024 to 2.31 percent in June 2024 on a month-over-month basis.
Similarly, despite being referred to as the “food basket of Africa,” the country exported a significant amount of food from overseas, according to CBN’s quarterly figures.
According to an estimate, between January and March 2024, its inhabitants paid $689.88 million on import bills. This represented a $12 million, or 1.77 percent, increase over the $677.61 million recorded during the same time in the prior year.
The administration is concerned about the high cost of food imports. The nation has a sizable agricultural industry, and initiatives have been made to increase domestic output in order to lessen reliance on food imports. However, issues including poor infrastructure, insecurity, and climate change have made it more difficult for the industry to advance.
