Post by Ismail AbdulAzeez on Apr 16, 2022 19:17:53 GMT 1
Agricultural Imports: Nigeria Spends N1.9 Trillion On Agricultural Imports In 2021 – Despite Massive CBN Interventions
This looks outrageous as Nigeria has been reported to have imported agricultural products worth N1.9 trillion in 2021 alone. This is 42% higher than imports of agricultural products of the previous year which was N1.19 trillion. This is the highest amount on record ever spent for agricultural import in any year by the country.
This still occurred despite all efforts put in by the Central Bank of Nigeria (CBN) to grow the country’s agricultural sector. The apex bank has done so much to intervene and support local farmers through various means and schemes. With all these, the country continued to spend huge sums of our scarce foreign exchange resources on importation of agricultural products.
However, the country just earned N504.89 billion from the export of agricultural products in 2021, which is 57% higher than the earnings from the sector in the previous year 2020 which was N321.54 billion and 87% more than the N269.83 billion recorded in 2019. This clearly shows the annual agricultural trade balance deficit of N1.46 trillion.
This information was from the foreign trade report of the National Bureau of Statistics (NBS).
It is regrettable that the agricultural sector, which is reputed to be the largest sector of the Nigerian economy, and accounts for 23.9% of the country’s GDP, with an estimated value of N18.74 trillion has been unable to meet local demand, much less of earning significant income in foreign exchange from exports for the economy.
In the year 2021, the agricultural sector recorded a 2.13% year-on-year growth in real terms, which is lower than the 2.17% growth recorded in the year before.
Over the years, several policies had been implemented in a bid to increase growth of the agricultural sector. Some of these policies include ban on importation of certain items and closure of the borders and massive financial injection into the sector.
CBN’s Agricultural Interventions:
According to the latest data from the CBN, the apex bank intervened in the manufacturing, industries, energy/infrastructures, agriculture, and healthcare among other sectors.
Statistics show that between November and December 2021, the CBN disbursed N75.99 billion to support the cultivation of over 383,000 hectares of maize, rice, and wheat under the Anchor Borrowers’ Programme (ABP), bringing the total disbursements under the programme to N927.94 to over 4.5 million smallholder farmers cultivating 21 commodities across the country.
The CBN also released N1.7 billion to finance two (2) large-scale agricultural projects under the Commercial Agricultural Credit Scheme (CACS).
From the above analysis, we can decipher that despite continuous contribution of the CBN into the agricultural sector, it appears Nigerians are still importing food items in large quantities from other countries for various reasons.
I think that those running the agricultural sector need to sit down and evaluate the immediate and remote causes of the increase in import bill without a commensurate increase in the export revenue; as this has been leading to negative trade balance in the country.
The country has all it takes to be a giant in the agricultural sector; but other smaller countries with far less resources than Nigeria are taking the shine off the country in output of agricultural produce.
The countries have strategic grains reserve according to various grains categories; but in Nigeria it is a big task to produce enough grains like maize for current consumption and export before you start talking of pilling up for the strategic grains reserve.
In our subsequent articles, we would follow up with what the country is doing to increase the production of maize that will bolster our production so that we will have enough for local consumption, export and to beef up our strategic grains reserve.
Our company is one of the best companies in importation business in Nigeria today, we train individuals and corporate organizations on how to do Major and Mini Importation business the right way; if you are interested, please contact the admin of this forum now.
This looks outrageous as Nigeria has been reported to have imported agricultural products worth N1.9 trillion in 2021 alone. This is 42% higher than imports of agricultural products of the previous year which was N1.19 trillion. This is the highest amount on record ever spent for agricultural import in any year by the country.
This still occurred despite all efforts put in by the Central Bank of Nigeria (CBN) to grow the country’s agricultural sector. The apex bank has done so much to intervene and support local farmers through various means and schemes. With all these, the country continued to spend huge sums of our scarce foreign exchange resources on importation of agricultural products.
However, the country just earned N504.89 billion from the export of agricultural products in 2021, which is 57% higher than the earnings from the sector in the previous year 2020 which was N321.54 billion and 87% more than the N269.83 billion recorded in 2019. This clearly shows the annual agricultural trade balance deficit of N1.46 trillion.
This information was from the foreign trade report of the National Bureau of Statistics (NBS).
It is regrettable that the agricultural sector, which is reputed to be the largest sector of the Nigerian economy, and accounts for 23.9% of the country’s GDP, with an estimated value of N18.74 trillion has been unable to meet local demand, much less of earning significant income in foreign exchange from exports for the economy.
In the year 2021, the agricultural sector recorded a 2.13% year-on-year growth in real terms, which is lower than the 2.17% growth recorded in the year before.
Over the years, several policies had been implemented in a bid to increase growth of the agricultural sector. Some of these policies include ban on importation of certain items and closure of the borders and massive financial injection into the sector.
CBN’s Agricultural Interventions:
According to the latest data from the CBN, the apex bank intervened in the manufacturing, industries, energy/infrastructures, agriculture, and healthcare among other sectors.
Statistics show that between November and December 2021, the CBN disbursed N75.99 billion to support the cultivation of over 383,000 hectares of maize, rice, and wheat under the Anchor Borrowers’ Programme (ABP), bringing the total disbursements under the programme to N927.94 to over 4.5 million smallholder farmers cultivating 21 commodities across the country.
The CBN also released N1.7 billion to finance two (2) large-scale agricultural projects under the Commercial Agricultural Credit Scheme (CACS).
From the above analysis, we can decipher that despite continuous contribution of the CBN into the agricultural sector, it appears Nigerians are still importing food items in large quantities from other countries for various reasons.
I think that those running the agricultural sector need to sit down and evaluate the immediate and remote causes of the increase in import bill without a commensurate increase in the export revenue; as this has been leading to negative trade balance in the country.
The country has all it takes to be a giant in the agricultural sector; but other smaller countries with far less resources than Nigeria are taking the shine off the country in output of agricultural produce.
The countries have strategic grains reserve according to various grains categories; but in Nigeria it is a big task to produce enough grains like maize for current consumption and export before you start talking of pilling up for the strategic grains reserve.
In our subsequent articles, we would follow up with what the country is doing to increase the production of maize that will bolster our production so that we will have enough for local consumption, export and to beef up our strategic grains reserve.
Our company is one of the best companies in importation business in Nigeria today, we train individuals and corporate organizations on how to do Major and Mini Importation business the right way; if you are interested, please contact the admin of this forum now.