Food Import Spending Records Decline
Nigeria’s food import bill dropped to $2.34 billion in 2025, representing a 7.37 percent decline from the $2.53 billion recorded in 2024.
Financial analysts say the development reflects a gradual shift in the country’s economic priorities and foreign exchange allocation strategy.
According to data contained in the latest Quarterly Statistical Bulletin released by the Central Bank of Nigeria (CBN), demand for foreign exchange to finance food imports weakened during the year despite ongoing concerns about food security.
An analyst who reviewed the report said the figures suggest a reduction in dependence on imported food products.
“We are seeing a structural adjustment in the way Nigeria allocates foreign exchange,” the analyst explained. “The lower demand for food import financing points to reduced import reliance, even as food security challenges remain.”
Monthly Import Demand Shows Seasonal Trends
CBN data showed that food imports consumed an average of $195.28 million monthly throughout 2025.
Import demand remained relatively low during the first half of the year. April recorded the lowest monthly figure at $141.13 million.
However, spending increased during the second half of the year. The highest monthly figure came in September, when food import financing reached $248.60 million.
A CBN official attributed the increase to seasonal market activities.
“The third and fourth quarters usually witness higher import demand because businesses stock goods ahead of festive periods,” the official said. “Even so, the overall trend shows a decline in food import financing.”
Food Imports Take Smaller Share of Forex Use
Beyond the decline in spending, the report highlighted a significant drop in the share of foreign exchange allocated to food imports.
Food imports accounted for 4.97 percent of total forex utilisation in 2025. This compares with 9.49 percent recorded in 2024.
The decline occurred despite a sharp rise in overall foreign exchange utilisation.
According to the CBN, total forex usage increased by 77 percent, rising from $26.65 billion in 2024 to $47.17 billion in 2025.
As a result, food imports represented a much smaller portion of the country’s total foreign exchange demand.
Growth in Other Sectors Drives Forex Expansion
Economic experts believe the increase in overall forex utilisation points to stronger activity across key sectors of the economy.
Finance and economic analyst Sola Adekanmbi said manufacturing and industrial activities likely accounted for much of the increase.
“An expanding forex pool combined with a lower food import bill is a positive signal for long-term growth,” Adekanmbi stated.
He added that the trend suggests more foreign exchange is flowing into productive sectors rather than consumption-driven imports.
According to him, greater investment in industrial inputs and manufacturing could strengthen economic resilience and support future growth.
