By [ Okafor Joseph Afam Name]Springs Media Limited | March 21, 2025

Agricultural stakeholders have raised concerns over an impending food price hike by mid-2025, following a sharp increase in food imports last year.

According to the National Bureau of Statistics (NBS), the value of food imports surged by 51.06% in 2024, reaching ₦3.78 trillion, up from ₦1.85 trillion in 2023. This spike has been linked to the Federal Government’s 150-day duty-free import window introduced in July 2024 to curb food inflation by increasing supply.

While the import waiver led to a temporary reduction in food prices—evident in declining costs at markets such as Kano’s Singer Market—stakeholders argue that the policy is unsustainable.

Farmers Warn of Unsustainable Dependence on Imports

The All Farmers Association of Nigeria (AFAN) President, Kabir Ibrahim, acknowledged that the import duty waiver helped stabilize prices but warned of long-term consequences.

“Nigeria, with a population of over 200 million, cannot rely on imports for food security,” Ibrahim said in a phone interview with The PUNCH. He cautioned that food prices could start rising again by August 2025, as imported stock depletes and local farmers struggle with high costs of production, including fertilizers and labor.

“If farmers are unable to get real value for their produce due to imported food flooding the market, they may reduce production, leading to another round of scarcity,” Ibrahim added.

Storage Deficiencies, Seasonal Farming Worsen Price Volatility

Tunde Banjoko, Chairman of the Lagos Chamber of Commerce and Industry (LCCI) Agriculture and Allied Group, also highlighted Nigeria’s weak food storage systems as a major factor in price instability.

“Rice, garri, and beans prices are already going up, though they remain lower than in late 2024,” Banjoko noted. He explained that during harvest periods, farmers sell in bulk due to a lack of storage facilities, causing temporary price drops. However, once the stock is consumed, prices surge again.

“By June, we may see a sharp increase in food prices,” he warned.

Banjoko advocated for increased government investment in storage facilities and low-interest loans for farmers. He suggested revamping the Bank of Agriculture to provide single-digit interest loans instead of forcing farmers to rely on commercial banks that charge 30% to 48% per annum.

Government Response: Balancing Food Availability and Stability

In response to concerns, Marion Moon, Assistant to the President on Agriculture and Executive Secretary of the Presidential Food Systems Coordinating Unit (PFSCH), defended the import window as a short-term measure to address food accessibility issues.

“We understand the need for long-term stability. The government is working to ensure food security by improving local production, accessibility, and storage,” Moon said in an exclusive interview with The PUNCH.

She emphasized that food security is not just about availability but also affordability and nutrition, and that the government will continue collaborating with both public and private stakeholders to stabilize the market.

Conclusion

Despite the temporary relief provided by increased food imports, stakeholders warn that Nigeria must address local production challenges, high farming costs, and weak storage infrastructure to prevent another food crisis. If these issues remain unaddressed, food prices may soar again by mid-2025, putting further strain on consumers.