Nigeria’s Trade Restrictions Fuel Food Inflation — NIPSS Report

A new report by the National Institute for Policy and Strategic Studies (NIPSS) has linked Nigeria’s food inflation to restrictive agricultural trade policies, warning that the measures are raising prices, fueling informal trade, and harming agribusiness investment.

The findings were unveiled at a two-day Agricultural Trade Roundtable jointly organized by the U.S. Mission’s Foreign Agricultural Service (FAS) in Lagos, the Nigerian-American Chamber of Commerce (NACC) Kaduna Chapter, and the Nigeria Agribusiness Group (NABG).

The discussions brought together legislators, trade policy experts, agribusiness leaders, regulators, and U.S. agricultural associations to evaluate how Nigeria’s policies are shaping food security and economic growth.

According to the NIPSS-led research, Nigeria’s heavy reliance on import bans and high tariffs has driven food inflation to 30.6 percent in 2023, with the prices of staples like rice and beef more than doubling within two years.

The report noted that 1kg of local rice surged by 137.32 percent year-on-year in October 2024, while boneless beef climbed nearly 99 percent.

The study also pointed to production shortfalls, including a maize supply gap of 300,000 metric tons annually and yields far below regional peers, as well as the unintended growth of cross-border informal trade in rice and poultry.

These, it said, undermine government revenue and weaken food safety oversight.

Policy recommendations from the NIPSS team include phasing out import bans, reducing tariffs, harmonizing sanitary and phytosanitary rules under the African Continental Free Trade Area (AfCFTA),

It also recommended the establishment of a centralized authority to coordinate agricultural trade policy.

The roundtable stressed Nigeria’s low protein intake, just 45.4 grams per capita daily compared with the UN-recommended 60 grams, and noted that new investments, including soybean imports and training programs supported by U.S. agricultural associations, are helping bridge the country’s feed and protein gaps.

Speaking at the event, Matthew Obogbaimhe, Chairman of NACC Kaduna, said revitalizing Nigeria’s agriculture requires “more than trade restrictions; it demands innovation, sustainable practices, and infrastructure investment.”

FAS Agricultural Counselor Christopher Bielecki added that the roundtable created “a unique platform to discuss innovative solutions to strengthen trade, reduce costs, and drive prosperity for both American and Nigerian farmers.”

Also speaking, NABG Director General Jafar Umar described the meeting as “timely and highly relevant” and pledged continued collaboration to implement the recommendations.

The U.S. Mission’s FAS office said it will continue working with Nigerian stakeholders to translate the roundtable’s proposals into actionable reforms aimed at reducing food costs, encouraging investment, and improving food security.

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