Between 2016 and 2021, Nigeria spent a total of N6.47 trillion to import agricultural products like wheat, sugar, fish, milk, and others according to Dataphyte’s latest research brief titled “From Farm to Future: Thoughts on Food Security, Farmers’ Prosperity and Fiscal Stability in Nigeria”.
According to the brief, Nigeria spent 8.20 trillion on imports between 2016 and 2021 and agricultural imports account for 7.88% of the total imports.
In 2016, Nigeria spent 656.43 billion to import food/agricultural products which was 7.44% of the total imports into the country that year. The following year, the money spent on food imports increased to 886.79 billion accounting for 9.27% of imports.
In 2021, what Nigeria spent on food/agriculture went up to N1.97 trillion, which was 9.44% of the total imports made in the year.
While the value and share of food import has increased significantly, “the share of agriculture in Nigeria’s total export earnings remains small compared to the import”, the report states.
In the period under review, Nigeria’s total export stands at 9.16 trillion, and agricultural exports account for only 1.78% of that figure. Earnings from Agricultural exports have been on an upward trend since 2016 except in 2019 when there was a slight dip.
Increasing earnings from export have however yet to meet up with import expenses. Nigeria recorded its highest earnings from agriculture export in 2021 — N504.89 billion which is lower than the N1.97 trillion that was spent to import foods and agricultural products in the same year. Thus, resulting in an agricultural trade deficit of N1.46 trillion in the 2021 fiscal year.
The Dataphyte report explains that Nigeria still remains a net food importer, and with agricultural imports exceeding exports each year, the agricultural trade deficit has continued to expand in nominal terms growing from N595.72 billion in 2016 to approximately N1.46 trillion at the end of 2021.
To close the wide agricultural trade deficit, the report suggests that the Nigerian government should realign and pursue its macroeconomic policies in a manner that will reduce variability in agricultural product prices, importation, and more importantly, boost export earnings; noting that the country has a comparative advantage in producing several exportable agricultural commodities.