The Central Bank of Nigeria in the second quarter of 2024 allocated $547.7 million (N823.19 billion at the official exchange rate of N1,503.3/$1 as of June 30, 2024) for food item imports.
This represents a decrease of $142.48 million, or 20.6%, compared to the $689.88 million released in the first quarter.
In naira terms, this is a reduction of N80.76 billion, or 8.93%, from the N903.95 billion allocated in Q1.
Overall, the CBN has released a total of N1.73 trillion for food imports over the first half of 2024, according to its quarterly statistics bulletin.
An analysis of the reports on Friday showed that Nigerians spent $164.43m in January, $303.91m in February, and $221.54m in March.
The apex bank allocated $153.27 million in April, $197.21 million in May, and $197.22 million in June for food imports.
However, the Federal Government’s goal of lowering food commodity prices through the implementation of zero duty on selected basic items is proving increasingly difficult.
This challenge is highlighted by a significant rise in the average price of imported food items, which reached a price point index of 878.3 in September 2024, indicating broader economic pressures.
On July 8, 2024, the Federal Government announced a 150-day duty-free import window for food commodities, including maize, husked brown rice, wheat, and cowpeas, aimed at reducing food inflation in Nigeria.
This initiative is designed to mitigate the impacts of factors contributing to food scarcity and rising prices.
The strategy involves removing or significantly reducing import duties and value-added tax to stimulate food imports and lower consumer prices.
But three months after the government’s announcement of the duty-free import scheme, it has yet to take off, primarily due to bureaucratic delays and the Federal Ministry of Finance’s failure to publish the list of qualified importers.
This list is a requirement outlined in the guidelines issued by customs in August, and its absence has hindered the implementation of the initiative.
According to the National Bureau of Statistics monthly inflation report, the new figure indicated a rise of 30.6 price index or 3.61 per cent from 847.7 in August 2024.
Further analysis showed that the average price of imported food has surged by 72.3 percentage points or 8.97 per cent from the 806.0 average price index in July 2024 when the policy was announced and 878.3 in September.
