Nigeria's agricultural trade balance has experienced a notable reversal, moving from a surplus of N740.27 billion in the first half of 2025 to a deficit of N56.13 billion in H1 2026. This shift is attributed to a sharp decline in agricultural exports, which fell from N2.96 trillion to N1.98 trillion year-on-year.
The decline in exports, which dropped by 33.3%, outpaced the decrease in imports, which fell by only 8.5%. The second quarter of 2026 was particularly impactful, contributing significantly to the overall deficit, with Q2 figures showing a deficit of N400.78 billion compared to a surplus of N71.94 billion in Q2 2025.
Despite the overall downturn, certain agricultural commodities like cocoa and sesame continued to perform well, generating substantial export revenues. Notably, standard quality cocoa beans alone brought in N154.31 billion, highlighting the sector's potential amidst the broader challenges.
Agriculture remains a crucial sector for employment in Nigeria, with over 25 million people engaged in agricultural activities as of 2023. This underscores the importance of addressing the challenges faced by the agricultural trade to sustain employment and improve export earnings.
The latest trade statistics emphasize the need for strategies to enhance Nigeria's agricultural production and strengthen its trade balance in the sector, which is vital for the country's economy.