CBN allocates N1.73tn for food imports in six months

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CBN allocates N1.73tn for food imports in six months

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Overview
The Central Bank of Nigeria (CBN) allocated approximately N1.73 trillion for food imports in the first half of 2024. This spending highlights challenges in achieving food security due to rising costs and reliance on imports.

Food Import Costs

  • Q1 2024: $689.88 million (N903.95 billion)
  • Q2 2024: $547.7 million (N823.19 billion), showing a 20% reduction from Q1.

Government Efforts and Challenges

  • A duty-free import window for essential food items was announced but has faced delays.
  • Imported food prices have surged, worsening inflation despite policy efforts to reduce costs.

For further details, refer to the Punch article.

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Perplexity’s is better

CBN’s Food Import Allocation and Nigeria’s Food Inflation Challenge

CBN’s Food Import Allocation

The Central Bank of Nigeria (CBN) has allocated a significant amount for food imports in the first half of 2024:

  • Total Allocation: N1.73tn for food item importation over six months[1][2]
  • Q2 2024 Allocation: $547.7m (N823.19bn)[1][2]
  • Q1 2024 Allocation: $689.88m (N903.95bn)[1][2]

Monthly Breakdown

  • January: $164.43m
  • February: $303.91m
  • March: $221.54m
  • April: $153.27m
  • May: $197.21m
  • June: $197.22m[2]

Government’s Efforts and Challenges

Zero Duty Import Window

  • Announced on July 8, 2024
  • 150-day duty-free import window for select food commodities
  • Aimed at reducing food inflation[2]

Implementation Hurdles

  • Scheme has failed to take off after three months
  • Bureaucratic processes and lack of published list of qualified importers cited as reasons[2]

Rising Food Prices

Imported Food Price Index

  • September 2024: 878.3 price point index
  • August 2024: 847.7
  • July 2024: 806.0[2]

Year-to-Date Increase

  • January 2024: 692.6
  • September 2024: 878.3
  • Total increase: 26.81% or 185.7 price index points[2]

Monthly Imported Food Inflation Rates

  • January: 26.29%
  • February: 29.81%
  • March: 32.89%
  • April: 34.01%
  • May: 34.83%[2]

Conclusion

Despite the CBN’s significant allocation for food imports and the government’s efforts to implement a zero-duty import window, Nigeria continues to face rising food prices. The imported food price index has shown a consistent upward trend, indicating persistent challenges in addressing food inflation in the country.

Sources
[1] CBN allocates N1.73tn for food imports in six months
[2] CBN allocates N1.73tn for food imports in six months CBN allocates N1.73tn for food imports in six months