Nigerians’ reliance on imported food products surged in the third quarter of 2024, as foreign exchange (FX) demand for the sector climbed by 16% quarter-on-quarter (q/q) to $633.6 million, according to data from the Central Bank of Nigeria (CBN)’s quarterly statistical bulletin.
The sharp increase contrasts with an overall decline in FX demand across other sectors, underscoring rising costs or heightened dependency on food imports.
The apex bank reported that while food products saw a notable rise in FX demand, overall FX utilisation fell by 11% to $5.7 billion during the same period.
On a year-on-year (y/y) basis, however, aggregate sectoral FX utilisation increased by a staggering 72%, reflecting broader market adjustments to fluctuating exchange rates and economic realities.
The decline in overall FX utilisation was largely driven by a significant reduction in invisible transactions, particularly in the financial services sector, which dropped by 32% q/q to $2.2 billion.
Consequently, the financial services sector’s share of total FX usage dipped to 39%, compared to 51% in Q2 2024.
