Nigeria’s Imports Reach N12 Trillion, With Food, Fuel Marking Around 40% Surge

Nigeria imported a huge amount of refined petroleum products and agricultural food in the first quarter of 2024, reaching N12.64 trillion, which marked an increase of 39.65% compared to Q4 2023, as per the National Bureau of Statistics' new report named Foreign Trade Statistics.

In the first quarter of this year, the manufacturers spent N1.5 trillion on importing raw materials, while citizens spent N920.54 billion on agricultural goods.

"The share of total imports accounted for 39.75% of total trade in the first quarter of 2024 with the value of imports amounting to N12.64 trillion in Q1, 2024. This value indicates an increase of 39.65% over the value recorded in Q4 2023 (N9.05 trillion) and rose by 95.53% compared to the value recorded in Q1 2023 (N6.46 trillion)," as per the report, Punch reported.

The report further mentioned that the "merchandise trade balance for Q1 2024 stood positive at N6.5 trillion."

The bureau noted that China cemented its position as Nigeria's top trading partner for imports, contributing 23.18% to the total imports. Whereas, other significant import partners included India (8.46%), the United States (7.98%), Belgium (7.56%), and the Netherlands (4.68%).

The value of agricultural goods imported was N920.54 billion, marking a 29.45% increase compared to Q4 2023 and a 95.28% rise compared to Q1 2023. Similarly, manufacturers imported raw materials worth N1.47 trillion, showing a 51.78% increase from Q4 2023 and a 164.18% rise from Q1 2023.

"In the first quarter of 2024, solid mineral imports were valued at N71.38 billion. This represents a 21.15% increase from N58.92 billion in Q4 2023 and a 59.23% increase from N44.83 billion in Q1 2023," the report mentioned.

Nigeria is going through a major food crisis that is affecting the country's stability, for instance, food prices have skyrocketed as food inflation hits 40.5%.

In just one year, rice prices have gone up by 169%, reaching nearly N90,000 per bag in March and April. This rise in food costs is making life difficult for families all over Nigeria, especially considering the already struggling economy.

The government demonetized three denominations of the old naira bills -- N200, N500 and N1,000 -- in October 2022 as part of its currency redesign policy. The demonetization caused the mopping up of over 70% of cash in the country and led to an estimated loss of N20 trillion.

Apart from demonetization, fuel subsidy removal also brought hardships for Nigerians, as it increased food and fuel prices drastically.