News

CBN Reduces Food Import Funding To $547.7 Million Amid Rising Inflation

Published

1 month ago

Oct 20, 2024.

The Central Bank of Nigeria (CBN) released $547.7 million (N823.19 billion at the official exchange rate of N1,503.3/$1) to Nigerians for food importation in the second quarter of 2024.

This amount marks a 20.6% decrease from the $689.88 million recorded in the first quarter, with a corresponding reduction of N80.76 billion when converted to naira.

The total released for food imports in the first half of 2024 was N1.73 trillion, according to CBN’s quarterly statistics bulletin.

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EKO HOT BLOG reports that Nigerians spent $164.43 million on food imports in January, $303.91 million in February, and $221.54 million in March. The figures for April, May, and June were $153.27 million, $197.21 million, and $197.22 million, respectively.

Despite the government’s efforts to reduce food prices through zero-duty import schemes, inflationary pressures persist.

In July, the Federal Government introduced a 150-day duty-free import window for essential food commodities like maize, rice, wheat, and cowpeas to reduce food inflation.

However, three months later, the scheme has not been implemented due to bureaucratic delays and the failure of the Federal Ministry of Finance to publish the list of eligible importers.

Meanwhile, the average price of imported food has surged, reaching 878.3 points in September, up 3.61% from August. This reflects a broader economic challenge as foreign food products become more expensive amid domestic supply shortages.