Nigerian Government’s Plan to Reduce Food Prices Faces Major Setbacks
Nigeria’s efforts to reduce food prices and inflation have encountered a significant hurdle. Despite releasing $547.7 million for food importation in the second quarter of 2024, the Central Bank of Nigeria’s initiative has not yielded the desired results. This allocation is a reduction of $142.48 million from the first quarter of 2024, translating to a decrease of 20.6 percent.
According to data from the bank’s quarterly statistics bulletin, the total amount spent on food importation in the past six months is approximately N1.73 trillion. However, this has not been enough to alleviate the economic pressures that have led to a surge in food prices. In September 2024, the average price of imported food items reached an alarming 878.3 price point index, up from 847.7 in August 2024.
The Federal Government had announced a 150-day duty-free import window for food commodities, including maize, husked brown rice, wheat, and cowpeas, in an attempt to drive down consumer prices. However, three months since the announcement, the scheme has failed to take off due to bureaucratic hurdles and the failure of the Federal Ministry of Finance to publish a list of qualified importers.
Despite the Minister of Finance, Wale Edun, confirming that the government has ordered maize and wheat imports to stabilize the food market, the National Public Relations Officer of the Nigerian Customs Service, Abdullahi Maiwada, could not confirm whether the imports have been made. Meanwhile, the price of imported food continues to escalate.
According to the National Bureau of Statistics monthly inflation report, the average price of imported food has increased by 72.3 percentage points or 8.97 percent from July 2024 to September 2024. On a year-to-date basis, this increase represents a surge of 185.7 price index points or 26.81 percent from January 2024.
The imported food inflation rate has consistently risen over the past nine months, from 26.29 percent in January to 34.83 percent in May, showing a continued upward trend. As Nigeria grapples with food supply shortages, the reliance on foreign food products has intensified, putting more pressure on the economy.
With the government’s plan to reduce food prices facing major setbacks, it remains to be seen how the situation will unfold. As the prices of imported food continue to escalate, Nigerians are left to bear the brunt of the economic challenges facing the country.
