Nigeria records N424bn trade deficit in agric sector

Nigeria’s agriculture sector has recorded a deficit of N423.69 billion in the third quarter of 2023, the recently published Foreign Trade report by the National Bureau of Statistics (NBS) shows.

BusinessDay’s analysis of the NBS data shows that the deficit recorded in Q3 2023 is one of the sector’s highest quarterly deficits.

Experts say this owes to declining production amid government interventions to ramp up local production.

Jude Obi, president of the Association of Organic Agriculture Practitioners of Nigeria, blames current production levels on the declining yield from farmlands as a result of heavy use of synthetic fertilisers that destroy the soil instead of replenishing it.

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“As we continue to increase the quantity of synthetic fertilisers on farms, yield will continue to be poor,” Obi said.

Data from the Food and Agricultural Organization of the United Nations show that Nigeria has failed to make appreciable efforts in increasing its farm yields, as Africa’s most populous nation still records the lowest yields per hectare among its peers.

For rice, the average yield per hectare in Nigeria is 1.93 metric tons (MT), whereas Kenya is 7.28MT, Ghana – 2.97MT, South Africa- 2.84MT, and Ethiopia- 3.33.

Similarly, for maize, which is the most consumed grain on the continent, Ethiopia’s average yield for the crop is 4.24MT per hectare, higher than Nigeria’s 2.12MT. Ghana’s average yield is 2.69MT per hectare. South Africa also records an average yield of 5.41MT.

“Nigeria does not produce enough to feed herself, and that is already a deficit,” analysts who spoke with BusinessDay said.

The sector traded to a tune of N863.67 billion in total for Q3 2022, with exports accounting for 25 percent (N219.99 billion) of said amount, and imports accounting for the remaining 75 percent (N643.68 billion).

“The value of imports of agricultural goods in Q3, 2023 stood at N643.68 billion, an increase of 41.51 percent and 25.50 percent when compared to the values recorded in Q2 of 2023, and the corresponding quarter of 2022 respectively,” the NBS said.

It added, “Exports of agricultural goods in Q3 2023 amounted to N219.99 billion compared to the value recorded in Q2 2023 (N280.87 billion), showing a decrease of 21.68 percent and a rise of 161.25 percent when compared to the value recorded in Q3 2022 (N84.21 billion).”

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Abiodun Olorundenro, managing partner at Prasino Farms, said inflation and food inflation, which are currently at record percentages, have caused production levels to fall greatly. He also referred to the high cost of doing business in the country.

“Inflation is rising, logistics costs also. Petrol, and diesel prices have gone up by over 50 percent, whereas purchasing power of final consumers has also gone down.” These and more, he said, “are causing production levels to drop.”