Nigeria food import bill declined to $2.34bn in 2025, reflecting reduced import reliance and a shift in foreign exchange allocation

Nigeria’s Food Import Bill declined to $2.34 billion in 2025, representing a 7.37 per cent reduction from the $2.53 billion recorded in 2024, according to data contained in the latest Quarterly Statistical Bulletin released by the Central Bank of Nigeria.

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The figures indicate a gradual reduction in the country’s reliance on imported food products, even as broader foreign exchange utilisation expanded significantly during the period.

Financial analysts said the development points to a notable shift in Nigeria’s economic priorities and foreign exchange allocation patterns.

“We are seeing a structural realignment in how the country allocates its hard currency,” an analyst reviewing the CBN data said.

“The drop in food-related foreign exchange demand suggests a moderation in import reliance, even as Nigeria continues to navigate food security challenges.”

According to the bulletin, food imports accounted for an average monthly foreign exchange expenditure of $195.28 million throughout 2025.

Import demand remained relatively subdued during the first half of the year, reaching its lowest level in April at $141.13 million.

However, spending increased during the second half of the year and peaked at $248.60 million in September.

A senior CBN official, who spoke anonymously, attributed the fluctuations to seasonal demand patterns.

“The spikes we observed in the third and fourth quarters, particularly the September peak, reflect traditional seasonal stocking ahead of the festive period. However, the macro trend remains clear: the overall trajectory for food import financing is leaning downward,” the official said.

Beyond the decline in absolute spending, analysts highlighted a more significant development in the shrinking share of food imports within Nigeria’s overall foreign exchange utilisation.

The CBN data showed that food imports accounted for just 4.97 per cent of total foreign exchange utilisation in 2025, compared with 9.49 per cent in 2024.

The sharp decline occurred despite a substantial increase in overall foreign exchange usage across the economy.

Total foreign exchange utilisation rose by approximately 77 per cent, increasing from $26.65 billion in 2024 to $47.17 billion in 2025.

According to the report, food imports consumed a significantly smaller proportion of available foreign exchange even as demand for foreign currency increased across other sectors of the economy.

“Food imports took up a much smaller portion of overall forex demand, even though the economy used substantially more foreign exchange across other vital sectors,” the report stated.

Economic experts believe the trend may reflect increased activity in productive sectors requiring capital-intensive investments.

Finance and economic analyst Sola Adekanmbi said the data suggests that more foreign exchange resources are being directed towards manufacturing, industrial expansion and other growth-oriented activities.

“An expanding forex pie coupled with a shrinking food bill is exactly what the economy needs to witness for sustainable long-term growth,” Adekanmbi said.

“It implies that liquidity is increasingly being directed toward productive capacity and industrial inputs rather than consumption.”

The development comes amid ongoing efforts by policymakers to boost domestic agricultural production, strengthen food security and reduce pressure on foreign exchange reserves.

While challenges remain within Nigeria’s agricultural sector, analysts say the latest figures could signal gradual progress towards reducing dependence on imported food and encouraging greater domestic production.

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The data also highlights a broader transformation in foreign exchange allocation as authorities seek to support industrialisation, economic diversification and long-term economic resilience.