Food Prices Remain High Despite N7.65 Trillion Imports, Raising Concerns Over Policy Impact
By Queen Madaki
Food prices in Nigeria have remained persistently high despite government interventions and food imports valued at N7.65 trillion in 2025, raising concerns about the effectiveness of policy measures aimed at easing cost pressures on households.
Insights gathered by The Business Bureau show a widening gap between fiscal interventions and actual market outcomes, as increased spending on palliatives and imports has yet to significantly improve affordability for millions of Nigerians.
Data reviewed indicates that while government spending and imports have increased, inflationary pressures across key food categories remain elevated.
What The Data Is Saying
Available figures show that rising fiscal interventions and import volumes have not translated into meaningful reductions in food prices.
- The Federal Government spent N9.74 billion on food palliatives in 2024, according to BudgIT’s GovSpend platform
- In 2023, N185 billion was distributed to states and the FCT for rice and fertiliser procurement
- Nigeria’s food import bill rose to about $10 billion in 2023, including $3 billion spent on grains
- Food and beverage imports increased from N3.83 trillion in 2023 to N6.58 trillion in 2024 and N7.65 trillion in 2025
- Food inflation stood at 14.31% year-on-year in March 2026, contributing to overall inflation of 15.38%
Although the government introduced a zero-duty levy on selected food imports in 2024, which helped moderate inflation temporarily, prices have continued to rise in 2026.
More Insights
Experts say the persistence of high food prices reflects deep structural inefficiencies within Nigeria’s food system rather than insufficient government spending.
Agricultural economist Dr. Adebayo Oladipo explained that weak supply chains and post-harvest losses continue to limit the effectiveness of interventions.
“If the supply chain is broken and storage is poor, increased funding will not automatically reduce prices,” he said.
Development expert Dr. Zainab Usman highlighted rising fuel costs as a major contributor to food inflation, noting that transportation costs are passed across the entire value chain.
Economist Ibrahim Yusuf pointed to exchange rate volatility, explaining that imported inputs such as fertiliser and machinery continue to drive up production costs.
Security challenges in farming regions have also reduced output, while climate shocks such as floods and droughts continue to disrupt agricultural cycles.
Experts warn that reliance on imports offers only short-term relief while exposing the country to global price fluctuations and foreign exchange constraints.
Impact On Households
Rising food prices are intensifying the cost-of-living crisis, with households forced to adjust consumption patterns.
According to analysts, many families are cutting back on both the quantity and quality of food, with potential long-term implications for health and productivity.
They also note that even when inflation slows, prices do not decline but simply rise at a slower pace, meaning pressure on consumers remains.
What You Should Know
The Federal Government has continued to roll out reforms aimed at strengthening agriculture and improving food security.
- A N1 billion agricultural education reform programme has been introduced
- A N250 billion facility has been approved for the Bank of Agriculture to support farmers
- A $1 billion intervention partnership with Afreximbank is targeting value chain development
Experts, however, stress that sustainable price stability will depend on long-term structural reforms, including investment in storage, logistics, mechanisation, and rural infrastructure.
Without these changes, The Business Bureau analysis suggests that food price volatility is likely to persist despite increased government spending.
