Nigeria imported wheat worth N1.29trn in 2021-NBS
Nigeria’s foreign trade data, released by the National Bureau of Statistics (NBS) reported that Nigeria imported durum wheat worth N1.29 trillion in 2021, representing a 71.1% increase compared to N756.92 billion recorded in the previous year, and more than triple the N401.31 billion recorded in 2019.
According to the NBS report, durum wheat import accounted for 6.2% of the total import bill recorded in the review year, representing the second-highest contributor to Nigeria’s import bill and the highest imported food item.
Durum wheat is a variety of spring wheat that is typically grinded into semolina and used to make pasta, couscous, bulgur, noodles, and bread, all of which are highly consumed meals in Nigeria. A further look at the data shows that durum wheat imported in 2021, represents the highest on record.
The disaggregated data shows that the highest wheat import for the year was recorded in Q4 2021 at N397.19 billion, followed by Q2 2021 (N324.72 billion), Q3 2021 (N315.17 billion), and Q1 2021 (N258.3 billion).
The surging wheat import could be attributed to the supply gap in the country and improved demand in the domestic market. However, the recent invasion of Russia in Ukraine has sent the prices of wheat to record high, further affecting the global wheat supply value chain.
Nigeria could be spending more on wheat import following the war, which has further escalated the inflation level in advanced economies, and by extension on Nigeria due to our dependence on importation.
For example, US inflation climbed to 7.9% in February 2022, representing a 40-year high, while Canada recorded a 30-year high inflation of 5.7% in February 2022. Inflation also rose a 30-year high in the UK in January 2022. In the same vein, Nigeria’s inflation rate also rose to 15.7% in February 2022 from 15.6% recorded in the previous month.
The Central Bank of Nigeria (CBN) in April 2021, hinted that it will be adding sugar and wheat in the FX restriction list, indicating that importers of wheat will no longer be able to access FX from the I&E window at the official rate.
Following the announcement, the apex bank has devised strategic action plans to increase wheat production by addressing existing difficulties in the value chain and, as a result, bolstering the country’s foreign reserves.
Deputy Governor, Corporate Services of CBN, Mr. Edward Lamtek, while representing the CBN Governor, Godwin Emefiele in Jos in November 2021 said that wheat has been a major factor in the exchange rate imbalance in the country.
The governor also added that the issue of wheat importation would be addressed through the wheat value chain intervention programme captured under the Nigerian Brown Revolution, which is an offshoot of the Anchor Borrowers’ Programme (ABP).
Nairametrics
