Overview

Agriculture is the largest economic sector, accounting for almost 24 percent of the country’s gross domestic product (GDP). Eighty percent of farmers are considered smallholder farmers and account for approximately 90 percent of agricultural production. The country’s staple crops are cassava, maize, millet, rice, sorghum, and yam and cover approximately 65 percent of cultivated land. Ranchers in the north are major producers of cattle. Agriculture employs almost 50 percent of the working population, and an additional 14 percent of the working population is employed in the off-farm agri-food system. 

While the country has immense production potential, systemic challenges impede progress including insecurity, rising input costs, climate change, post-harvest loss, low levels of mechanization and irrigation, and poor transportation and cold chain networks. Government policies have sought to address these challenges with limited success. The government proposed allocating 1.75 percent of the national budget in 2025 to agriculture, which is well below the 10 percent Nigeria committed to in the Maputo Declaration on Agriculture and Food Security in Africa. Recent economic reforms, specifically the fuel subsidy removal and unification of exchange rates led to higher input costs, lower subsidy allocations, and cash shortages for producers. 

In 2023, the country imported $6.6 billion of agricultural and related goods, a 15 percent decrease from 2022. In 2023, agricultural and related exports from Nigeria to the world were valued at $2.3 billion, a 24 percent increase over the previous year. The naira’s devaluation has made the country’s exports more competitive in foreign markets, including neighboring countries. U.S. imports of Nigeria’s agricultural and related goods reached $118 million, a 37 percent increase from 2022. Top U.S. imports from Nigeria consisted of specialty plant products, cocoa products, soybean cake, and cashews. U.S. exports to Nigeria decreased 61 percent from $631 million in 2022 to $245 million in 2023 due to challenging economic conditions, a depreciating naira, and lower consumer purchasing power. Most U.S. exports were wheat, followed by food preparations, ethanol, alcoholic beverages, and frozen fish. 

Since at least the early 2000s, the government has implemented food and agricultural trade bans on a wide variety of products including maize, poultry, meat, eggs, vegetable oils, and noodles. The Nigeria’s Customs Service (NCS) maintains the “Prohibited Items List During Import” and “Prohibited Items List During Export.” Nigeria also maintains high tariffs and additional levies on many imports, including rice, corn, and wheat. In October 2023, the Central Bank of Nigeria lifted foreign exchange restrictions on 43 items, including several agricultural products. However, importers report continued difficulty sourcing foreign exchange to import. A summary of the agricultural trade restrictions can be found here. 

Rising food prices remain a serious concern, as food inflation has averaged close to 40 percent for much of 2024. Food price inflation can be attributed to higher import prices, lower domestic production, and higher fuel and transportation costs due to the removal of the national fuel subsidy. In a bid to lower food prices, the NCS publicly released implementation guidelines that temporarily waives all import (and associated levy) taxes for rice, sorghum, millet, corn, wheat, and beans until December 31, 2024. However, according to reports, the temporary policy has not been implemented as of October 2024.

The government recently reorganized several departments and offices with agricultural roles and created one new agriculture-related ministry. In 2023, the President established the Federal Ministry of Marine and Blue Economy to utilize marine resources for economic development. As a result, the Department of Fisheries and Aquaculture was recently transferred from the Ministry of Agriculture and Food Security to the new Federal Ministry of Marine and Blue Economy. In July 2024, the President announced the creation of the Federal Ministry of Livestock Development. 

Bulk Agricultural Products

Table 1: Wheat, Corn, and Rice Production and Trade

Sources: Grain and Feed Update and FAS Lagos Estimates

Notes: 

MY = Marketing Year begins with the month listed at the top of each commodity column
TY = Trade Year for Wheat: July to June
TY = Trade Year for Rice, Milled: January to December
TY = Trade Year for Corn: October to September

Wheat

Despite government efforts to increase wheat production, production remained unchanged in the 2024/2025 marketing year (Table 1) due to insecurity in production areas, high fertilizer and seed prices, and cost of living increases affecting farmer planting decisions. Average yields per hectare are low at only 1.1 metric tons per hectare. Domestic wheat production accounts for just around three percent of consumption, with 97 percent imported. Nearly all wheat imported is unmilled due to higher tariffs on milled wheat. Bread is typically the most consumed product derived from wheat, followed by pasta noodles. Wheat flour and bread prices have continued to increase while wages have largely stayed the same, making many lower income households unable to afford wheat-based products. 

Durum wheat has the highest market share among U.S. bulk product exports. FAS-Lagos forecasted wheat imports from the United States to increase by about seven percent in the 2024/2025 marketing year (MY). U.S. exporters reported increased wheat sales to Nigeria in the first quarter of the MY 2024/2025 year-on-year. This is attributed to economic stabilization in Nigeria, and higher U.S. wheat stocks compared to other world exporters. The government’s temporary waiver of import tariffs and duties on wheat imports may increase imports and lower prices, however reported delays in the policy’s implementation and weak consumer demand could negate any of the policy’s proposed benefits.

Leading Sub-sectors 

Flour Milling: Flour millers are the main purchasers of unmilled wheat. Many millers are vertically integrated serving as importers and wheat flour distributors to end users. 

Baking: The baking sector offtakes most wholesale wheat flour from millers. Bread is the most widely consumed wheat-based product, followed by pasta, pastries, cookies, and biscuits. To upgrade facilities, bakeries have an interest in importing equipment through consolidated purchases. 

Opportunities 

Domestic wheat production is expected to remain largely unchanged, leading to the continued need to import. Millers are looking for ways to keep the final cost of items low, with some cheaper, lower-quality (e.g., lower protein) wheat with more expensive higher-quality wheat. The zero-duty import of wheat policy may increase imports from the United States. 

Corn

Corn is the largest domestically produced field crop, and an important staple for both local food consumption and animal feed. Production had declined by about ten percent in the last two years  (Table 1) due to insecurity in major producing states and high input costs. Approximately 45 percent of domestically produced corn is used in animal feed, with most of this used for poultry production. Household food use accounts for about 15 percent of consumption. The food processing, ethanol, and beverage industry uses the remainder. Corn prices have surged in recent years due to lower production, restrictive trade policies, and growing demand. 

On August 14, Nigeria’s Customs Service publicly released implementation guidelines that temporarily waived all import (and associated levy) taxes for corn and other commodities until December 31, 2024. This policy was expected to increase corn imports and encourage feed millers to reduce prices and stimulate greater corn use for feed by poultry producers. However, importers reported delays in the implementation of the policy. The Customs Service prohibits the export of corn; however, informal corn exports to neighboring countries continue. These exports can be attributed to the depreciation of the naira relative to the CFA franc, which benefits buyers from neighboring countries and Nigerian sellers who are keenly in search of stable foreign exchange.

In January 2024, Nigeria approved the commercial release of four TELA maize varieties, which have been genetically engineered for improved insect-resistance and drought-tolerance, making Nigeria the second country in Africa to approve the commercial planting of biotech corn. While these varieties may improve yields in the long-term, Nigeria would need to invest in substantial seed trade infrastructure and farmer training to utilize these hybrid seed varieties.

Leading Sub-sectors 

The poultry sector is the leading sub-sector utilizing corn. Feed constitutes about 70 percent of the cost of production for poultry farmers. As corn is the essential ingredient in feed, producers are always looking for opportunities to find more stable sources of corn. Corn products, such as gluten, are also in demand by the aquaculture sector as fish feed ingredients.

Opportunities

The zero-duty import policy on corn could encourage imports in the 2025/2026 MY. Nigeria’s poultry sector is projected to continue to increase as Nigeria’s population growth drives greater consumption and the population becomes more accustomed to consuming poultry. 

Rice

Nigeria is the largest rice producer in Africa and the largest market for parboiled rice, valued at about $5 billion each year. However, there has been a decrease in production (Table 1) over the last three years due to insecurity in northern rice producing regions, decreased government support, high input costs, and inadequate mechanization. The supply crunch could be exacerbated this marketing year due to flooding in some producing states. Rice consumption is projected to decrease due to the weakened purchasing power of consumers. Consumption might improve if the government fully implements the waiving of husked brown rice import duties and levies that are currently at 20 percent. In October 2023, the Central Bank of Nigeria (CBN) lifted foreign exchange restrictions for the importation of 43 items, including rice. 

According to FAS analysis of the Nigeria’s Bureau of Statistics data, the price of one kilogram of polished rice increased by 152 percent year-on-year in May 2024 due to lower production. There are about 272 rice mills in the country, however less than half are reportedly operational due to paddy scarcity, high fuel costs, and high energy costs needed to operate generators. Local rice is not readily available and affordable to consumers as an alternative to imported rice. Imported and local rice prices increased by 44 percent and 50 percent respectively over the past year. 

While rice imports into Nigeria through land borders are banned, neighboring countries have traditionally funneled imported rice to Nigeria through informal trade channels. The weakened naira is expected to reduce imports of parboiled rice as the currency exchange is more favorable for holders of CFA francs in neighboring countries. Retailers might consider patronizing the local mills and paddy to bypass the naira devaluation effect on informal importation, however the lack of domestic paddy will make this challenging. 

Leading Sub-sectors

Polished and milled rice (exclusively parboiled).

Opportunities

In terms of milled rice, Nigeria’s two main importers of rice, Thailand and India, have a competitive edge. The United States can leverage the export of paddy and husked brown rice, given the zero-duty import policy on husked brown rice, which may boost imports in the 2025/2026 MY. 
 

Consumer-Oriented Food and Beverages 

Table 2: Total market size, Consumer-Oriented Food and Beverages, Unit: USD Millions 

Source: Trade Data Monitor, Inc and BICO – U.S. Census Bureau Trade Data

With its large consumer base and growing population, Nigeria is expected to remain an important market for food and agricultural exporters. However, economic, political, security, and consumer purchasing power challenges have limited consumer-oriented market growth. In 2023, consumer-oriented food exports were valued $1.6 billion, a 13 percent decrease from 2022. The United States accounted for only about two percent or $40 million, given strong competition from European, Asian, and South African suppliers. In its retail foods report, the United States Department of Agriculture (USDA) identified several recent food and beverage retail trends including increasing numbers of western-style hotel restaurants, convenient meal demand driven by increasing urbanization and female employment, and increasing consciousness of food safety and nutrition. The e-commerce sector has also shown some potential as more customers embrace online shopping. Processed food, beverages, condiments and sauces, spices, and tree nuts are among top consumer-oriented products sold online.

Nigeria has maintained agricultural import and export bans, including import bans on 11 agricultural and related categories, covering hundreds of specific products specified by harmonized systems (HS) codes. It also maintains high tariffs duties, and additional levies on imports, such as rice, which reached an estimated 110 percent through seaports (imports across land borders are banned) in recent years. Import tariffs, duties, and additional levies are subject to frequent change, and are not always well publicized and transparently applied. Please refer to the 2024 FAIRS Annual Country Report for specific information on the food and agricultural laws, regulations, and certificates required to import food and beverages into the country. U.S. exporters should reference the most recent FAIRS Export Certificate report for specific questions about certificates needed to export to Nigeria. 

U.S. wine and distilled spirits have an established presence and distribution network in Nigeria. Wheat-based bakery products and food preparations continue to grow in popularity, especially as hotels, cafés, and quick service restaurants grow. Currently, the major competitor in this group of products is the European Union. There is also competition from New Zealand for dairy products. For other products, especially fresh fruits and wines, South Africa is a major supplier. While the government’s trade restrictions limit imports of beef, pork, and poultry, there is strong consumer demand for poultry amid the proliferation of quick service restaurants specializing in chicken items. Nigerians are large consumers of wild-caught seafood and farmed fishery products. If economic growth returns, there may be renewed opportunities to export higher-end fishery products for the HRI and retail food sectors. Product prices at the point of origin, freight costs, and foreign exchange rates are major factors affecting the competitiveness of imported U.S. consumer-oriented food and beverages.

Leading Sub-sectors

Dairy products are the leading sub-sector with world exports valued at $568 million, however the United States exported $2 million in 2023. Food preparations, processed vegetables, and bakery goods, cereals and pasta, and alcoholic beverages are other potential prospects.

Opportunities 

In its Exporter Guide, USDA identifies the following as top consumer-oriented products based on growth trends:

• Prepared foods

• Seafood products

• Wine and related products

• Distilled spirits

• Dairy products

• Processed vegetables

• Pet foods

• Spices

For further information, U.S. exporters may contact: 
USDA – Foreign Agricultural Service
Office of Agricultural Affairs
U.S. Consulate General, Lagos
Nigeria
AgLagos@usda.gov
 

Agricultural Machinery

Table 3: Total market size for agricultural machinery, Units: USD millions

Total Market Size = (Total Local Production + Total Imports) – (Total Exports)
Data Sources: 
Total Local Production: Industry Contacts 
Total Exports: UN Comtrade 
Total Imports: UN Comtrade
Imports from U.S.: U.N. Comtrade

In pursuit of its economic diversification agenda, the government of Nigeria has continued to prioritize agricultural development in its policy and budgetary plans. The target is to build a strong agribusiness economy capable of meeting domestic food demand goals, generating export revenues, and creating jobs. The increased national focus on the sector has generated opportunities in the whole agricultural value chain, many parts in need of investment. The Nigerian government has framed various policies to push for mechanization, leading to increased adoption of equipment, specifically tractors, in agricultural production. 

In 2022, the Federal Ministry of Agriculture & Food Security (FMAFS) launched the National Agricultural Technology and Innovation Policy (NATIP), 2022 – 2027 to modernize the agricultural sector in line with changing global food systems and supply chains. NATIP seeks to consolidate the successes recorded in the implementation of previous agricultural development policies, reposition the National agricultural research system, drive holistic agricultural mechanization adoption, provide infrastructure in rural areas, standardize inputs and processing systems/techniques, and develop commodity value chains through clusters and special agro-processing zones. 

According to 6Wresearch, the Nigeria farm tractor market is anticipated to grow during the forecast period of 2020-2026. The adoption of precision agriculture technologies such as GPS mapping, yield mapping, and variable rate applications is gaining popularity. A major trend in the Nigerian agricultural sector is that private sector investors and commercial farms are developing their outgrower network of farmers, enabling them with mechanization, technology, inputs and farm extension assistance. These private entities largely purchase used equipment rather than new. The government remains the biggest buyer of new farm machinery. It is advisable for U.S. suppliers to retain local distributors or representatives with market development capabilities and experience selling to the public sector. Nigerian buyers are price sensitive and tend to favor cheaper and basic machinery that are easy to fix and use. Credit and good local aftersales support are selling points U.S. exporters can utilize to gain market share and increase competitiveness. Agricultural tractors imported as complete knock down (CKD) or semi-knock down (SKD) units for local assembly have zero duties and zero value-added tax (VAT). Although no duties are imposed on new fully built (FB) units, 7.5 percent VAT does apply. Used tractors are surcharged with 35 percent import duty and 7.5 percent VAT. 

Leading Sub-sectors

• Poultry
• Livestock (cattle, sheep and goats)
• Aquaculture
• Food storage, preservation and processing
• Irrigation
• Fertilizers (organic and inorganic)

Opportunities

The NSIA Agriculture Investment Company (NAIC) Limited, subsidiary of the Nigeria Sovereign Investment Authority (NSIA) https://nsia.com.ng/  is seeking to procure advanced agricultural equipment and machinery to enhance land clearing, land development, and land cultivation operations under its commercial agriculture program. The following equipment is needed:

• Land clearing equipment: Bulldozers, tree fellers, tractors, stump grinders, mulchers, and brush cutters.

• Land Development Machinery: Excavators, graders, trenchers, and drainage equipment.

• Land Cultivation Equipment: Tractors, ploughs, harrows, seed drills, boom sprayers, harvesters, and irrigation systems.

• Irrigation Technology: Sprinklers, pivots, pumps, and installation.
   

 NAIC Limited plans to develop and cultivate 150,000 hectares of maize, paddy rice and soyabeans annually by 2036. To this end, their strategic goal is to establish long-term partnerships with U.S. agricultural entities beyond just equipment supply, enabling the organization and its partners to collaboratively address the food scarcity challenges Nigeria currently faces. 

Local Trade Shows

Nigeria International Agricultural Expo (NIAEXPO) 2025 
September 26-28, 2025
Abuja Trade & Convention Center 
Abuja, Nigeria

Nigeria Agrofood
March 25-27, 2025
Landmark Center
Lagos, Nigeria 

Resources

Federal Ministry of Agriculture and Food Security (FMAFS) https://agriculture.gov.ng/
FAO report on Agriculture in Nigeria https://www.fao.org/nigeria/fao-in-nigeria/nigeria-at-a-glance/en/

For more sector information, e-mail: Ambrose Thomas, Commercial Specialist: Ambrose.Thomas@trade.gov