Central Bank of Nigeria Designates $547.7 Million for Food Imports in Q2 2024 Amid Rising Costs

The Central Bank of Nigeria (CBN) allocated $547.7 million (equivalent to N823.19 billion at the official exchange rate of N1,503.3/$1) to support food imports. This amount marks a 20.6% decrease from the $689.88 million set aside in the previous quarter and an 8.93% reduction in naira terms from N903.95 billion.continue Reading>>> ...CONTINUE READING>>>

Overall, N1.73 trillion was spent on food imports in the first half of 2024, as detailed in the CBN’s quarterly report. In the first quarter, food import expenditures totaled $164.43 million in January, $303.91 million in February, and $221.54 million in March. For the second quarter, the CBN allocated $153.27 million in April, $197.21 million in May, and $197.22 million in June.

According to a report from Punch, the Federal Government’s initiative to reduce food prices by eliminating duties on essential food items is facing obstacles. The prices for food imports have increased, with the price index rising to 878.3 in September 2024, highlighting the challenges in achieving price reductions.continue Reading>>>

To address inflation, the government announced a 150-day duty-free period for food imports, including maize, rice, wheat, and cowpeas, starting on July 8, 2024. This policy aimed to alleviate the impact of rising food prices by lowering import duties and taxes to boost food supply.However, three months after the announcement, the plan has yet to be put into action due to government bureaucracy and delays in the Federal Ministry of Finance releasing a list of eligible importers, which is required by customs regulations.