Export of food products worsens hunger, poverty amidst boom in dollar inflow

Nigerians are facing economic dilemma the increasing rate of export of food products as a result of the low exchange rate of the naira and huge incentive to earn dollars which has priceless in Nigeria.

While the country is experiencing rising rate of dollar inflow due to the growing number of Nigerians involved in non oil export, other Nigerians are facing the grim reality of hunger and poverty caused by spiraling inflation that leaves prices high following shortages in supply due to diversions for export.

The situation is also being aggravated by the fall in supply caused by the violent activities herdsmen and bandits who attack farmers and destroy their farms. Only last week, report indicated that more than 6000 farmers have recently been displaced between Benue and Nasarawa by  the atrocities of herdsmen.

With the growing export of food products,which is on the growing export to overseas and neighbouring countries the populace are deeper  trouble grappling with food inflation and lack of access  to food as a result of high prices.

Boom for a Few

According to Business Hallmark’s investigations, Nigeria’s exports of agricultural goods in the first quarter of 2025 amounted to ₦1.7 trillion, representing about 65 per cent rise from ₦1.035 trillion in  Q1 2024, and a 10.63 per cent increase from ₦1.540 trillion in the fourth quarter of 2024.

Agricultural stakeholders reckon that the threat of hunger is growing despite recording a N668.34bn agricultural surplus in the past year and have called for improved food processing and support for local farmers.

The value of agricultural exports surpassed imports by N668.34bn in the first quarter of 2025, according to the foreign trade data for Q1 2025 from the National Bureau of Statistics. The agricultural surplus reflects growing agribusiness trade following the Federal Government’s 150-day duty-free import window boost.

Agricultural imports dropped by 5.02 per cent to N1.04 tn in Q1 2025 from N1.09 tn in Q4 2024, but the year-on-year review shows a wider margin. Imports grew by 12.52 per cent from N920.54bn recorded in Q1 2024.

Stakeholders, including the Lagos Chamber of Commerce and Industry, the Agricultural & Allied Group, and the All Farmers Association of Nigeria, have cautiously lauded the country’s performance in agricultural exports, which grew by 10.63 per cent to N1.7 trillion from N1.54 trn in the preceding quarter, but they warned that given the situation at home, it can have grave implications for hunger.

Hunger in the Air

In separate interviews with Business Hallmark, they  posited  that while high agricultural exports signal good fortunes for agribusinesses, raw commodity exports mean that the threat of hunger lingers as the lean season nears.

Dr. Mohamed Hadid, an agricultural economist, told Business Hallmark that “We have forgotten that charity begins at home. My problem with this administration is lack of understanding of issues affecting ordinary Nigerians; they look at phoney macroeconomic indicators that play well with their Western sponsors, forgetting that what matters is the welfare of the people, hunger and insecurity.

“Let us look at it, hunger is growing on the wings of food inflation, farmers are facing challenges accessing their farms as a result of insecurity, yet the foods that are supposed to serve the local market are being exported. “Though it may mean more money for farmers, at the end of the day it means more hunger and insecurity for the people. You only export the surplus, this administration should stop playing the child game and face governance anchored on the needs of the people. Tackle insecurity, empower farmers and encourage entrepreneurs in the food chain to create farm clusters with security.

Kayode Omoniyi, an agricultural entrepreneur, told Business Hallmark that the country faces hunger crisis, which, according to him, the government downplays, as it does every other difficulties its policies inflicted on Nigerians.

Government Responsibility

He noted that  “export of food products does worsen hunger in Nigeria through diversion of  food from the domestic market,  this often leads to increasing domestic food prices, and prioritizing raw material exports over the development of food processing, which is essential for food security.

“I’m a farmer, though we farmers may be making more money, it hurts ordinary Nigerians, who are hungry. This practice contributes to food insecurity by creating a supply gap for local consumption, especially during lean seasons, and by reducing the availability of food for the local population.”

He stated that “When agricultural products like corn are exported, they are removed from the local market, reducing the amount available for domestic consumption, and this scarcity tells on the price of the available ones in the market.”

Only recently, Nigerian lawmakers have hinted on criminalizing certain food exports, such as corn, to tackle rising domestic hunger and food prices. They noted that the most important thing is to satisfy local market first, adding that it’s only when that’s guaranteed that exportation can be given consideration.

Allure of Dollars

The focus on earning foreign exchange through exports can drive up the price of commodities in the domestic market, as seen with cashew and other food items. This makes food less accessible to the general population.

Chairman of the LCCI Agricultural & Allied Group, Mr. Tunde Banjoko, maintained that only improved food processing capacity can secure Nigeria on its path to food security. He restated that Nigeria has not allayed fears of increased food prices in the lean season.

Banjoko explained that agribusinesses’ search for foreign exchange and increasing demand for raw materials, such as cornflour by pharmaceutical manufacturers, drove the N668.34bn agricultural surplus.

Banjoko noted that farmers are poised to enjoy export dividends as they meet the quality that buyers seek.

He said, “Everybody is trying to earn in forex now, hence the push for exports in the agric space. That’s why, for example, the price of most of our commodities, such as cashew, went up this year, even though cocoa came down. There is a demand for our product in many countries, especially in Asia.

He noted that there is security crisis, adding that  since the crisis hurts the food supplied to the markets, one “cannot say we have respite until the price of food in the markets has come down. That’s the way to measure, not on paper. Until we get to the markets and get food at the best rates, then we can say that we have probably tamed the inflation of food.”

Meanwhile, the President of AFAN, (All Farmers  Association of Nigeria) Kabir Ibrahim, advocated support for subsistence farmers. Like Banjoko, he lauded the impact of the duty-free import window, saying, “A lot of those things that were imported into the country are in the market, and that is helping to cushion the inflation.”

AFAN’s president noted that despite some farmers reporting that they are getting value for their products, the consumers are complaining about inflation.

Balance of Payments

“Most Nigerians still complain of a harsher economic trend,” he explained. “The farmer is happy when he sells and can buy and meet their other needs. But not everybody has got that surplus to send to the market and derive anything from it, as a majority of Nigerian farmers are doing it at a subsistence level.”

Agricultural products were mainly exported to Europe at N1.13 tn, followed by exports to Asia, valued at N431.15 bn. Main agricultural goods imported in Q1 2025 included durum wheat from Russia and Argentina, valued at N111.67 bn and N47.62 bn, respectively.

It was followed by ‘Soya beans (excluding seeds)’ valued at N45.04bn and N25.71bn from the United States and Brazil, respectively, and frozen Jack and horse mackerel meat, valued at N50.08bn from Chile.

Poverty in Nigeria is an everyday reality that grips millions of lives across the country. Now this phenomenon seems to have largely been compounded by hunger, which the ongoing export of foods products seems to have worsened.

In 2018,  Nigeria  overtook India as the world’s poverty capital, with 86.7 million people living in extreme poverty.

By 2022, the situation had worsened, as a joint report by the National Bureau of Statistics and international development partners revealed that 133 million Nigerians were living in multidimensional poverty, deprived of basic needs like food, education, clean water, and healthcare.

The human toll of poverty in Nigeria is harrowing. Malnutrition and hunger are widespread, with more than 25 million people facing food insecurity according to the Food and Agriculture Organisation.

Nigeria now has the second-highest number of stunted children in the world, with 37 per cent of children under five suffering from chronic malnutrition. Public health remains a national emergency