Food import grows despite CBN fillip to raise local output
By Jeph Ajobaju, Chief Copy Editor
Food import rose 42 per cent to N1.97 trillion in 2021, above N1.19 trillion in 2020, a historic level that dwarfs Central Bank of Nigeria (CBN) interventions to lift agricultural output and ensure food security in Africa’s most populous nation.
Nigeria in contrast earned N504.89 billion from agricultural export in 2021, up to 57 per cent higher than N321.54 billion in 2020 and 87 per cent above N269.83 billion in 2019.
That puts annual agricultural trade balance at a deficit of N1.46 trillion, according figures released by the National Bureau of Statistics (NBS).
Agriculture, the largest sector of the economy, accounted for 25.9 per cent of Gross Domestic Product (GDP) in 2021 with an estimated value of N18.74 trillion but does not meet local demand, let alone garner export earnings.
The sector had a 2.13 per cent year-on-year (YoY) growth, lower than 2.17 per cent in 2020.
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CBN interventions
The latest CBN Monetary Police Committee (MPC) communique said the apex bank intervened in manufacturing/industries, agriculture, energy/infrastructure, and healthcare, among other sectors, as quoted by Nairametrics.
Between November and December 2021, the CBN disbursed N75.99 billion to support the cultivation of over 383,000 hectares of maize, rice, and wheat under the Achor Borrowers’ Programme (ABP).
That brought cumulative disbursements to N927.94 billion to more than 4.5 million smallholder farmers cultivating 21 commodities across the country.
The CBN also released N1.76 billion to finance two large-scale agricultural projects under the Commercial Agriculture Credit Scheme (CACS).
International trade
International trade surged 58 per cent to N39.8 trillion in 2021, largely driven by imports worth N20.84 trillion; 64 per cent higher than N12.7 trillion in 2020. Exports rose 51 per cent to N18.91 trillion.
Foreign trade deficit grew to N1.94 trillion from N178.3 billion in 2020.
Crude oil export increased 53 per cent to N14.41 trillion, from N9.44 trillion in 2020.
Non-crude oil export fetched N4.49 trillion, 46per cent higher than N3.08 trillion in 2020.
Backstory
Nigeria imports large quantities of food yearly, attributed in part to local supply gap created by terrorism ravaging the North which prevents farmers from cultivating crops.
High import bill without commensurate export returns means a negative trade balance which adds pressure to naira exchange rate.
The CBN defends naira at N416/$1. The parallel market rate is as high as N580/$1.
