Nigeria spends $1.19bn on food imports in six months

The Central Bank of Nigeria's latest analysis reveals Nigeria spent $1.19bn in foreign exchange on food imports during the first half of 2026, marking an 11.41% increase from $1.07bn in the same period the previous year, according to a report by Sami Tunji. Despite government efforts to stimulate local food production, demand for foreign currency to finance these imports remained robust.

Forecasts indicate that rising foreign exchange usage in April, May, and June of 2026 largely compensated for the decline in the previous quarter, leading to a 26.38% rise in spending from $514.34m to $650m in the second quarter. However, this positive trend masks underlying issues such as insecurity and insufficient technology adoption in agriculture, according to Femi Egbesola, President of the Association of Small Business Owners of Nigeria.

The Emir of Kano, Muhammadu Sanusi, cautioned that opening the market to food imports, including rice from Thailand, has adversely affected local rice mills and worsened the situation for banks dealing with bad loans, emphasizing the need for a balanced approach that supports domestic production without overwhelming competition from imports.