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

• Published On: 21 October 2024 at 12:44

In the second quarter of 2024, the Central Bank of Nigeria budgeted $547.7 million (N823.19 billion at the official exchange rate of N1,503.3/$1 as of June 30, 2024) for food imports.

This is a drop of $142.48 million, or 20.6%, from the $689.88 million released in the first quarter.

In naira terms, this represents an 8.93% decline from the N903.95 billion allotted in Q1.

According to the CBN's quarterly statistics bulletin, it has released a total of N1.73 trillion for food imports in the first half of 2024.

According to figures released on Friday, Nigerians spent $164.43 million in January, $303.91 million in February, and $221.54 million in March.

The apex bank set aside $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 cutting food commodity costs by imposing zero tariff on certain fundamental products is becoming increasingly challenging.

This difficulty is underscored by a considerable increase in the average price of imported food goods, which reached 878.3 in September 2024, indicating larger economic constraints.

On July 8, 2024, the Federal Government announced a 150-day duty-free import window for basic commodities such as maize, husked brown rice, wheat, and cowpeas, with the goal of decreasing food inflation in Nigeria.

This program aims to alleviate the effects of variables that contribute to food scarcity and rising costs.

To increase food imports and cut consumer prices, the policy calls for the elimination or major reduction of import levies and value-added taxes.

However, three months after the government announced the duty-free import program, it has yet to take effect, owing to bureaucratic delays and the Federal Ministry of Finance's inability to publish the list of qualifying importers.

This list is a criterion listed in customs instructions established in August, and its absence has slowed the initiative's implementation.

According to the National Bureau of Statistics' monthly inflation report, the new figure indicated a 30.6 price index increase, or 3.61 percent, from 847.7 in August 2024.

Further investigation revealed that the average price of imported food has increased by 72.3 percentage points, or 8.97 percent, from the 806.0 average price index in July 2024, when the policy was announced, to 878.3 in September.