Nigeria’s agricultural trade balance has slipped into a deficit after two consecutive years of surpluses, with food import waivers and persistent insecurity blamed for weakening local production and export performance.
According to a report by The PUNCH, the country recorded an agricultural trade surplus of ₦740.27 billion in the first half of 2025 but swung to a deficit of ₦56.13 billion in the corresponding period of 2026.
Recent foreign trade data from the National Bureau of Statistics showed that agricultural exports fell by 33.28 per cent, declining from ₦2.96 trillion in the first half of 2025 to ₦1.98 trillion in the same period of 2026.
Agricultural imports also declined, but at a slower rate of 8.5 per cent, dropping from ₦2.22 trillion to ₦2.03 trillion. The contrasting movements resulted in a ₦796.40 billion deterioration in the country’s agricultural trade balance.
Chairman of the Lagos Chamber of Commerce and Industry’s Agricultural and Allied Group, Tunde Banjoko, attributed the development partly to government policies that reduced import duties on certain food commodities, including rice and palm oil.
He argued that the measures made imported products more attractive to traders than locally produced alternatives, potentially undermining domestic farmers and manufacturers.
Banjoko warned that continued reliance on imports could discourage local production, threaten employment and force some factories to shut down if they struggle to compete with imported goods.
He also called on the Federal Government to accelerate the development of Special Agro-Industrial Processing Zones to strengthen domestic production, improve processing capacity and expand agricultural exports.
Meanwhile, Chief Executive Officer of the Centre for the Promotion of Private Enterprise, Dr Muda Yusuf, identified insecurity as another major factor affecting the sector.
Yusuf explained that attacks on farming communities, kidnappings and other security challenges had forced some farmers to abandon their land, while others had been displaced into internally displaced persons’ camps.
He noted that reduced farm output directly affects Nigeria’s export capacity, stressing that farmers cannot supply international markets without sufficient production.
The high cost of agricultural inputs, including fertilisers, agrochemicals, machinery and improved seedlings, has further complicated the situation. Yusuf urged the government to make these essential inputs more affordable and consider introducing minimum guaranteed prices to protect farmers when market prices fall.
The latest figures highlight the challenges facing Nigeria’s agricultural sector as policymakers seek to balance the need to make food more affordable for consumers with efforts to protect local producers and strengthen the country’s food security.
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