FX liberalisation by President Bola Tinubu has affected Nigerian businesses across the board. Africa’s largest economy depends heavily on imported products, including seed imports for agricultural purposes. The price of imported seeds has reportedly risen between 20 and 50% due to the nation’s FX scarcity. Using imported seeds harms local production.
Domestic seed demand is estimated at 394,294 metric tonnes, while local production is thought to be around 93,306 metric tonnes. Therefore, there’s a supply deficit of 300,987 metric tonnes, according to the National Agricultural Seed Council (NASC). The supply gap is reportedly valued at US$429.2m. Analysts believe that while imported seed prices momentarily increase due to dollar scarcity, it is therefore pertinent for local seed companies to scale production and introduce improved seed varieties. According to the National Agricultural Seed Council, the number of seed companies has increased from 5 companies to 314 companies. Analysts also expect the government to fund seed companies and agric-science research institutes.
