Nigeria’s $10bn annual food import bill sparks call for agricultural reform

Minister of Agriculture and Food Security, Sen. Abubakar Kyari, has revealed that Nigeria spends approximately $10 billion each year importing agricultural products such as wheat, rice, sugar, fish, and tomato paste.

Speaking at the First Bank of Nigeria Ltd.’s 2025 Agric and Export Expo in Lagos on Tuesday, Kyari, represented by his Special Adviser, Ibrahim Alkali, expressed concern over the country’s high reliance on agro-imports and called for increased investment in agriculture to enhance local production and export revenue.

According to the News Agency of Nigeria (NAN), Kyari emphasized the critical role of financing in transforming Nigeria’s agriculture sector, which accounts for 35% of the nation’s GDP and employs a similar percentage of its workforce.

Despite Nigeria’s vast 85 million hectares of arable land and a youthful population—over 70% of whom are under 30—the country contributes less than 0.5% to global exports, earning under $400 million annually from agro-exports.

Kyari underscored the Tinubu administration’s commitment to achieving food sovereignty, ensuring Nigeria can feed itself independently of global supply chain disruptions.

He stressed that boosting domestic production and supporting agro-exports are interconnected goals, vital for reducing import dependency and fostering economic resilience.

“Nigeria has the land, labor, and markets, but we need robust financing systems, value addition, and infrastructure to turn potential into prosperity,” Kyari said.

He advocated for a shift from oil dependency to a diversified economy driven by agricultural exports and value-added agribusiness.

Additionally, he called for innovative financial mechanisms, such as structured credit systems, revenue-sharing models, and “Pay-as-Harvest” contracts, to attract significant capital and encourage youth participation in agriculture.

Kyari noted that these strategies are not theoretical but have proven effective in other economies. By adopting critical thinking and modernizing agricultural financing, Nigeria could enhance food security and elevate its position in global trade, he concluded.