N668bn Agric Trade Surplus Fails to Ease Hunger, Experts Call for Local Processing Support

Despite recording a trade surplus of ₦668.34 billion in agricultural exports in the first quarter of 2025, food insecurity and hunger remain pressing concerns in Nigeria, according to agriculture experts.

Figures released by the National Bureau of Statistics (NBS) show that agricultural exports rose to ₦1.7 trillion, outpacing imports which stood at ₦1.04 trillion. This surplus, buoyed by a 150-day duty-free import window initiated by the Federal Government, highlights increasing global demand for Nigerian agro-products.

However, stakeholders argue that while the figures may appear positive on the surface, they fail to reflect the ongoing hardships faced by average Nigerians in accessing affordable food.

Chairman of the Agricultural and Allied Group of the Lagos Chamber of Commerce and Industry (LCCI), Tunde Banjoko, emphasized that the country’s growing exports mostly consist of raw commodities rather than processed goods—limiting the real benefits to local food supply and food security.

“Exporting raw materials alone won’t solve the hunger crisis. What we need is robust investment in food processing,” Banjoko said. He added that increased demand for agricultural raw materials, particularly for foreign exchange gains and industrial use, had driven up local commodity prices, worsening food affordability.

He cited commodities such as cashew and cornflour as key examples of high-demand exports, driven by pharmaceutical and food processing industries abroad.

Despite the ₦668bn surplus, Banjoko pointed out that importation of food grew by over 12% year-on-year, underlining Nigeria’s continued dependence on external sources for food supply. He also warned of rising food prices in the coming months due to insecurity in key farming states, flooding in parts of Niger State, and the lean harvest season.

“The World Food Programme already projects that over 33 million Nigerians may face acute hunger by mid-2025,” he added. “Until we see food prices come down in local markets, we can’t say we’ve tackled food inflation.”

He stressed the need to transition from exporting raw materials to processed goods, urging policymakers to make food processing a strategic national priority.

AFAN (All Farmers Association of Nigeria) President Kabir Ibrahim echoed similar concerns, adding that the available data likely underrepresents the full picture due to untracked informal trade and porous borders.

“A lot of agricultural trade goes undocumented. Many imports and exports happen informally without full compliance with regulatory bodies,” Ibrahim said.

While he acknowledged that the duty-free import window has helped reduce inflationary pressures in some markets, he maintained that subsistence farmers—who make up the majority—are still struggling. He called for targeted support and better inclusion in national data collection.

“The surplus doesn’t mean much to a farmer who can’t access markets or inputs. Most Nigerian farmers are still operating at the subsistence level,” he added.

NBS data revealed that major export products in Q1 2025 included cocoa beans (standard and superior grade), cashew nuts in shell, sesame seeds, and cocoa butter. Europe accounted for the bulk of agricultural exports (₦1.13 trillion), followed by Asia (₦431.15 billion).

On the import side, Nigeria brought in large quantities of durum wheat from Russia and Argentina, soybeans from the U.S. and Brazil, and frozen fish from Chile—highlighting ongoing gaps in local food production.

As food inflation continues to weigh on households, experts say Nigeria must prioritize security in farming areas, streamline food value chains, and shift toward processing and storing local produce to ensure long-term food stability.