Surge in Nigeria's Imports Driven by Fuel and Food, Hits N12 Trillion

By Abass Ganiyu

Nigeria’s import bill for the first quarter of 2024 has surged to N12.64 trillion, marking a substantial 39.65% increase from the previous quarter and an astounding 95.53% rise from Q1 2023, according to the latest report from the National Bureau of Statistics (NBS).

The report highlights that refined petroleum products and agricultural food items were the primary imports, underscoring the country’s heavy reliance on these commodities. The value of agricultural goods imported rose sharply to N920.54 billion, a 29.45% increase from Q4 2023 and a 95.28% jump from Q1 2023. Raw material imports by manufacturers also saw a significant rise, reaching N1.47 trillion, up 51.78% from the last quarter of 2023 and a staggering 164.18% from the same period last year.

China maintained its position as Nigeria’s top trading partner, contributing 23.18% to total imports. Other major trading partners included India, the United States, Belgium, and the Netherlands. Key imported commodities were motor spirit ordinary, gas oil, durum wheat, cane sugar for sugar refineries, and other liquefied petroleum gases.

In response to the escalating import costs and the resultant economic pressures, the Nigerian government has announced plans to suspend import duties on staple food items, drugs, and other essential goods for an initial period of six months. This measure, disclosed by Taiwo Oyedele, Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, aims to curb the nation’s surging inflation, which has particularly impacted food prices.

Currently, food inflation stands at a critical 40.5%, with the price of rice—a staple in Nigerian diets—having soared by 169% over the past year, reaching nearly N90,000 per bag. This inflationary pressure threatens to plunge approximately 31 million Nigerians into severe food shortages by August 2024, exacerbating the country’s already fragile economy.

Despite conflicting views among stakeholders about opening the borders for food imports to combat inflation, President Bola Tinubu has refuted such plans, focusing instead on domestic measures to stabilize the market.

As Nigeria navigates these economic challenges, the government's strategic decisions in trade and fiscal policy will be pivotal in mitigating the impact on its citizens and fostering economic stability.


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