Nigeria’s agricultural trade recorded a major shift in 2024 with exports surpassing imports for the first time in five years.
Official data show that the sector’s trade value surged to N8.2 trillion, a 304% increase when compared to 2020.
This was attributed to the surge in local export quantities as more producers leveraged the weaker naira to maximize foreign exchange earnings.
According to experts, the over 70% decline in the value of the naira played a pivotal role in reshaping the trade balance.
With the exchange rate now favouring exporters, more agribusinesses are turning to international markets to up revenue generation by taking advantage of a stronger American Dollar to sell commodities such as cocoa, cashew, ginger, sesamum and frozen shrimps.
Industry players say the trend was fueled by the high demand for these products in global markets, particularly in Asia, Europe, and the United States, where buyers paid in stronger foreign currencies.
While the shift in trade dynamics boosted forex inflows, it also had ripple effects on local supply.
Market analysts believe that the surge in exports contributed to rising food prices in Nigeria as fewer agricultural products were available for domestic consumption.
The appeal of earning in dollars has made farmers and traders prioritize export contracts over the local market, which further strained food supply chains.
Beyond the direct impact on pricing, the growth in export activities has drawn more investment interest into agribusiness.
Farmers and agro-processors have increased participation in cash crop cultivation, positioning themselves for higher profitability as global demand remains steady.
Industry experts note that agriculture has increasingly become a commercial venture, with technology and e-commerce playing key roles in connecting Nigerian suppliers with international buyers.
Despite the impressive trade figures, the sector’s overall contribution to the economy declined slightly. Official reports indicate that agriculture’s share of GDP dropped to 24.64% in 2024 from 25.18% in the previous year.
Some stakeholders attribute this decline to structural challenges, including logistics inefficiencies and post-harvest losses, which continue to limit the full potential of the sector.
Import trends also reflected a shift in priorities. While demand for durum wheat remained strong, Nigeria’s total agric imports saw a relative decline, aligning with the broader trend of export-led trade growth.
However, concerns persist over the country’s reliance on imported food staples, especially with rising costs of production and distribution.
Industry leaders believe that the momentum in agricultural exports presents an opportunity for long-term sectoral development.
They argue that with strategic investments in processing, logistics, and value addition, Nigeria could further strengthen its position as a key player in global agricultural markets.
The trend also underscores the potential for increased forex earnings, a crucial factor as Nigeria seeks to diversify its revenue streams beyond oil.
With more farmers and agribusinesses pivoting toward exports, experts suggest that policy adjustments may be needed to balance trade expansion with food security.
The coming months will test the resilience of the sector as it navigates currency fluctuations, market demands and evolving consumer needs both locally and internationally.
