Nigeria’s food import bill declined by 7.37 per cent in 2025, according to new data from the Central Bank of Nigeria (CBN).
The latest figures show that the country spent $2.34 billion on food imports during the year. This represents a drop from the $2.53 billion recorded in 2024.
Financial analysts say the decline points to a gradual shift in Nigeria’s economic priorities and foreign exchange allocation.
Food Import Spending Falls
Data contained in the CBN’s Quarterly Statistical Bulletin revealed that food imports consumed an average of $195.28 million monthly in 2025.
However, spending fluctuated throughout the year.
Food import demand reached its lowest point in April at $141.13 million. Thereafter, demand increased steadily and peaked at $248.60 million in September.
According to analysts, the overall trend still reflects reduced dependence on imported food products.
“We are seeing a structural realignment in how the country allocates its hard currency,” an analyst said while reviewing the CBN figures.
He added that the decline suggests a moderation in food import dependence despite ongoing food security concerns.
Seasonal Demand Influenced Monthly Figures
Meanwhile, a CBN official explained the fluctuations recorded during the year.
According to the official, higher demand in the third and fourth quarters reflected seasonal stocking activities ahead of the festive period.
“The September peak was largely driven by traditional stocking patterns. Nevertheless, the broader trend shows a decline in food import financing,” the official stated.
Food Imports Take Smaller Share of Forex
Beyond the reduction in spending, the report highlighted a more significant development.
Food imports accounted for just 4.97 per cent of total foreign exchange utilisation in 2025. In contrast, they represented 9.49 per cent in 2024.
This decline came despite a sharp rise in overall foreign exchange usage.
According to the report, Nigeria’s total forex utilisation increased by 77 per cent, rising from $26.65 billion in 2024 to $47.17 billion in 2025.
As a result, food imports occupied a much smaller share of total foreign exchange demand.
The CBN noted that the economy consumed more foreign exchange across several sectors while food-related demand continued to decline.
Experts Link Growth to Productive Sectors
Economic experts believe the trend reflects stronger activity in manufacturing and other productive industries.
Finance and economic analyst Sola Adekanmbi said the expansion in forex utilisation suggests increased investment in industrial development and business operations.
According to him, the combination of lower food imports and higher productive spending is a positive sign for the economy.
“An expanding forex base alongside a shrinking food import bill supports sustainable economic growth,” Adekanmbi said.
He added that more foreign exchange now appears to be flowing into productive sectors rather than consumption-driven imports.
Outlook Remains Positive
Analysts expect the trend to continue if local food production improves and industrial activities expand further.
They argue that reducing reliance on imported food could strengthen foreign exchange reserves and improve long-term economic stability.
For now, the latest CBN data suggests that food imports are taking a smaller role in Nigeria’s overall foreign exchange demand while other sectors attract greater investment.
