Nigeria Spends $10 Billion Annually on Food Imports – Minister of Agriculture Raises Alarm
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| Abubakar Kyari |
Nigeria spends over $10bn yearly on food imports like rice and wheat. Minister Kyari calls for stronger agricultural financing to boost local production.
Nigeria’s Rising Food Import Bill
Nigeria is currently spending over $10 billion annually on food imports, according to the Minister of Agriculture and Food Security, Abubakar Kyari. Speaking at the First Bank of Nigeria 2025 Agric and Export Expo in Lagos, Kyari expressed concern about the nation’s heavy dependence on imported staples such as rice, wheat, sugar, fish, and tomato paste.
Despite having abundant arable land and a youthful population, Nigeria still struggles to meet its food demands locally. This reliance on food imports continues to put pressure on foreign reserves and limits the country’s economic potential.
Agriculture’s Contribution to Nigeria’s Economy
Kyari, represented by his Special Adviser, Mr. Ibrahim Alkali, revealed key statistics that highlight agriculture’s importance:
- Agriculture contributes 35% of Nigeria’s Gross Domestic Product (GDP).
- The sector employs around 35% of the nation’s workforce.
- Nigeria possesses over 85 million hectares of arable land.
- Youth under 30 make up over 70% of the population.
Yet, despite this potential, Nigeria earns less than $400 million annually from agro-exports, which represents less than 0.5% of global agro-trade.
President Tinubu’s Push for Food Sovereignty
The minister reiterated President Bola Tinubu’s commitment to food sovereignty. According to Kyari, food sovereignty means ensuring that no Nigerian goes hungry due to global food supply disruptions. Instead, the country must harness its land, workforce, and technology to secure local food production.
He emphasized that boosting domestic production and supporting exports must go hand-in-hand to build a sustainable agricultural economy.
“We must pivot from dependence on oil rigs to resilience in food and export earnings,” Kyari stressed.
For more insights on government agricultural policies, you can check the Central Bank of Nigeria’s policies on agricultural financing.
The Urgent Need for Agricultural Financing
One of the biggest challenges facing Nigeria’s agricultural sector is inadequate financing. Farmers often lack access to structured credit systems, which hinders growth and value addition. Kyari pointed out that the country needs innovative financing mechanisms to unleash the sector’s potential.
Suggested Financing Models Include:
- Performance-based agricultural loans tied to measurable outcomes.
- Revenue-sharing schemes between farmers and financiers.
- Pay-as-Harvest programs that reduce loan repayment risks.
- Forward contract factoring to secure markets for farm produce in advance.
Such mechanisms have worked in other economies and could significantly improve Nigeria’s agricultural output if adopted.
Turning Potential Into Prosperity
Nigeria has all the fundamentals — land, labor, and markets. What is lacking is the right system of financing, infrastructure, and value chain development. By addressing these gaps, the country can move from being import-dependent to becoming a major player in global food exports.
Kyari concluded that achieving food security will require innovation, youth participation, and strong financial backing. If properly implemented, Nigeria can save billions on food imports and redirect those resources into strengthening its economy.
