By Joy Odor Abuja
Nigeria’s stubborn agricultural trade restrictions are driving food inflation through the roof, fueling black market smuggling, and starving agribusinesses of clarity and investment, according to new findings unveiled at a high-powered agricultural trade roundtable hosted by the U.S. Mission’s Foreign Agricultural Service (FAS) in Abuja.
The two-day forum, held in partnership with the Nigerian-American Chamber of Commerce (NACC), Kaduna Chapter, and the Nigeria Agribusiness Group (NABG), brought together policy experts, legislators, researchers, and industry leaders to dissect the economic fallout of Nigeria’s current trade regime and chart a path forward.
Research presented by the National Institute for Policy and Strategic Studies (NIPSS) revealed staggering numbers: food inflation hit 30.6% in 2023, while the price of local rice skyrocketed by 137% in a single year and beef jumped nearly 99%.
Despite government bans and border closures, informal trade in staples like rice and poultry continues to flourish, costing the government revenue and undermining food safety oversight.
“Revitalizing Nigeria’s agricultural sector requires more than trade restrictions; it demands innovation, sustainable practices, and investment in infrastructure,”
said Matthew Obogbaimhe, Chairman of NACC’s Kaduna Chapter.
Experts at the forum urged Nigeria to ease import bans and punitive tariffs, and instead adopt predictable trade policies, transparent tariff-rate quotas, and harmonized standards under the AfCFTA framework.
Case studies from other countries showed how such reforms can stabilize food prices, boost production, and attract investment without sacrificing food sovereignty.
“By fostering dialogue, we explored innovative solutions to strengthen agricultural trade, reduce costs, and drive prosperity for both American and Nigerian farmers,” noted Christopher Bielecki, Agricultural Counselor at the U.S. FAS office in Lagos.
Echoing that position, NABG Director General, Jafar Umar, stressed that the forum came at a critical moment:
“Nigeria’s agribusiness sector is under immense pressure. This roundtable is timely and vital to the national discourse on food security.”
The roundtable also highlighted Nigeria’s widening maize production gap, 300,000 metric tons annually and stagnant yields of just 2.0 tons per hectare, less than half of South Africa’s 5.2.
Stakeholders agreed that without urgent reforms, Nigeria risks further food insecurity, escalating prices, and weakened competitiveness in regional and global markets.
For now, the U.S. Mission pledged ongoing collaboration with Nigerian partners to push the roundtable’s recommendations into action.
But the warning was stark, if trade policy doesn’t change, food will keep getting scarcer and more expensive, and Nigerians will pay the price.
