CBN Allocates N1.73tn To Support Food Importation In Six Months

CBN Allocates N1.73tn To Support Food Importation In Six MonthsThe Central Bank of Nigeria (CBN) allocated $547.7 million (N823.19 billion at the official exchange rate of N1,503.3/$1 as of June 30, 2024) for food imports in the second quarter of 2024. This marks a decrease of $142.48 million, or 20.6%, from the $689.88 million allocated in the first quarter of the year. In naira terms, this represents a reduction of N80.76 billion, or 8.93%, from the previous quarter’s N903.95 billion.....KINDLY READ THE FULL STORY HERE▶

In total, the CBN has released N1.73 trillion for food imports over the first six months of the year, according to the bank’s quarterly statistics bulletin. An analysis revealed that spending by Nigerians included $164.43 million in January, $303.91 million in February, and $221.54 million in March.

In the following months, the apex bank allocated $153.27 million in April, $197.21 million in May, and $197.22 million in June. These measures come amid challenges for the Federal Government’s efforts to lower food prices through a zero duty on selected basic food items.

The average price of imported food items rose to an index of 878.3 in September 2024, highlighting ongoing economic pressures. On July 8, 2024, the government announced a 150-day duty-free import window for certain food commodities, including maize, husked brown rice, wheat, and cowpeas, aimed at mitigating food inflation in Nigeria.

The initiative was intended to remove or significantly reduce import duties and value-added tax to stimulate food imports and lower consumer prices. However, three months after the announcement, the program has stalled primarily due to bureaucratic delays and the Federal Ministry of Finance’s failure to publish a list of eligible importers, as required by customs guidelines issued in August.

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