Nigeria’s N7.65 trillion food imports fueling inflation – Terroso CEO

Nigeria’s food security debate has long centered on production metrics like tonnes harvested, hectares cultivated, and annual output growth.

While these figures are important, they fail to reflect the deeper structural challenges undermining the country’s agricultural economy.

A significant portion of locally produced food never reaches consumers in good condition due to weak infrastructure for storage, preservation, and transportation.

Post-harvest losses remain one of the most neglected risks in Nigeria’s agricultural value chain, eroding profits and discouraging farmers from scaling production.

This gap has fueled the growth of food importation.

According to the latest Foreign Trade Statistics from the National Bureau of Statistics (NBS), Nigeria’s food and beverage import bill surged to N7.65 trillion in 2025, underscoring the nation’s growing dependence on foreign supplies to meet rising domestic demand.

The imports include both raw food products and processed items, serving industrial needs as well as household consumption.

In this interview with Nairametrics, Opeoluwa Runsewe, CEO of Terroso Group, a diversified company spanning agriculture, manufacturing, energy, and resources, warned that Nigeria is “exporting jobs and importing inflation.”

He highlighted how structural inefficiencies, coupled with global disruptions such as the ongoing Middle East conflict, are straining Nigeria’s logistics chain and worsening the food security challenge.

Nairametrics: Nigeria’s spending on imported food and beverages surged to N7.65 trillion in 2025. What does this say about our local production?

Opeoluwa Runsewe: It tells a very clear story: we are exporting jobs and importing inflation. The issue isn’t just production volume, it’s productivity, quality consistency, processing capacity, and supply chain integrity.

Nigeria produces, but it does not yet compete at scale. Until we close the gaps in aggregation, storage, cold chain infrastructure, and agro-processing, imports will continue to fill the vacuum.

The opportunity here is enormous; every import category is effectively a market signal for local substitution.

Nairametrics: What challenges are local farmers facing, and what solutions would you recommend?

Opeoluwa Runsewe: The challenges are structural and deeply interconnected.

They include fragmented landholding systems limiting mechanization, limited access to affordable financing and insurance, poor rural infrastructure, including roads, storage, and power, high post-harvest losses due to weak cold chain systems, market access inefficiencies and price volatility.

The solution requires a systems approach. We need aggregation models, contract farming frameworks, and digitized supply chains that connect farmers directly to processors and markets.

Investment in cold chain logistics alone could recover up to 30–40% of lost produce, and that is why at Terroso, we focus on integrated value chains because farming without market linkage is charity, not business.

Nairametrics: Agriculture remains the backbone of many African economies. What innovations can transform the sector into a sustainable growth engine?

Opeoluwa Runsewe: Three things will redefine African agriculture: 1. Data-driven farming – satellite imaging, soil intelligence, and predictive analytics, 2. Cold chain and logistics infrastructure – to drastically cut post-harvest losses, 3. Embedded finance – using production and supply chain data to unlock credit.

Additionally, local processing is critical. Exporting raw commodities is economically inefficient, we must move up the value chain. Agriculture must evolve from subsistence to agribusiness, from volume to value.

Nairametrics: What are the biggest challenges facing Nigeria’s manufacturing sector today, and how can they be addressed?

Opeoluwa Runsewe: The constraints are well known. Unreliable power supply that is increasing production costs, FX volatility that is impacting raw material imports, logistics inefficiencies across ports and inland transport. limited access to long-term and affordable capital to compete globally, we must reduce the cost of production.

That means stable energy, preferably through embedded generation, improved port efficiency, and targeted fiscal incentives for local manufacturing.

Backward integration is also key. The more we localize inputs, the less exposed we are to external shocks. Manufacturing thrives on predictability, and that’s what policy must deliver.

Nairametrics: Nigeria will be hosting the Intra-African Trade Fair (IATF) next year in Lagos. What impact do you think this event could have on Nigerian businesses?

Opeoluwa Runsewe: The IATF is more than a trade fair, it’s a liquidity event for ideas, partnerships, and market access.

For Nigerian businesses, it presents a unique opportunity to reposition from import dependency to export competitiveness under the AfCFTA framework. However, the real value will depend on preparation.

If our businesses arrive with bankable products, standardized quality, and export-ready documentation, the upside is significant. If not, we risk being spectators at our own event. At Terroso, we’re already aligning our portfolio to leverage cross-border demand because trade favours the prepared.

Nairametrics: How can African countries better integrate their markets under AfCFTA?

Opeoluwa Runsewe: Policy alignment is the starting point, tariffs are only one part of the equation. We need harmonized standards, efficient customs processes, and interoperable payment systems.

Infrastructure is equally critical: ports, rail, and cross border logistics corridors must function seamlessly.

Finally, private sector collaboration will drive real integration. Governments can open the door, but businesses must walk through it with scalable models and regional ambition. Africa doesn’t lack markets; it lacks connectivity between them.

Nairametrics: The war in Iran has disrupted global oil markets. How long do you see this influencing energy prices in Nigeria?

Opeoluwa Runsewe: Geopolitical shocks tend to have both immediate and lagging effects. In the short term, volatility in crude oil prices is inevitable, which could temporarily boost Nigeria’s revenue.

However, domestically, the impact is more complex. Without sufficient refining capacity and stable FX conditions, higher global prices don’t necessarily translate into local stability.

If the conflict persists beyond the medium term, we could see sustained pressure on energy costs, inflation, and logistics expenses. The long-term solution is clear: energy diversification and domestic refining capacity.

Nigeria cannot continue to be an oil producer that imports energy vulnerability, that’s a contradiction we must resolve.