Reports

Agric in 2025: Food supply improves but farmers record losses

In 2025, food supply improved, fuelled by increased imports and bumper harvests, but farmers incurred huge losses on the back of high production costs and low prices.

“What we saw in 2025 was that food prices fell across Nigeria, especially in urban areas. Coupled with high cost of inputs, many farmers incurred huge losses, with some exiting the sector,” said Ifeanyi Okeleke, CEO of Kenfrancis Farms Limited.

From Benue to Kaduna, farmers said the price crash wiped off their earnings, deepening rural poverty and threatening next year’s food supply.

Ben Ayua, a rural farmer from Gwer East, Benue State, said the crash was good for consumers but was devastating for farmers already weakened by banditry, high input prices and collapsing farmgate rates.

He told BusinessDay that most farmers bought fertilisers and herbicides earlier in the year at peak prices but sold their harvests ‘far below’ production costs.

Read also: Banditry, kidnapping, conflicts tax Nigeria’s food systems

Other challenges

But this was not the only challenge. Climate variability disrupted planting and harvesting cycles, with flooding affecting some food-producing states and erratic rainfall impacting others.

Insecurity in key agricultural belts limited access to farmlands, displaced farming communities and heightened production risks.

Access to finance remained uneven. Although intervention funds were available, many farmers faced delays, limited coverage and high transaction costs.

Weak storage, processing and logistics infrastructure continued to contribute to post harvest losses, reducing effective supply and pushing prices higher in urban markets during lean periods.

Food security concerns persisted alongside these pressures. Population growth, income constraints and regional instability continued to expose millions of households to vulnerability, reinforcing the urgency of reforms beyond seasonal production gains.

Progress report

But it was not all bad news. Policy reforms under the Federal Ministry of Agriculture and Food Security played a central role in improved food supply. The focus shifted from emergency responses to building resilient systems capable of sustaining output, improving quality and supporting market integration.

Legal and regulatory reforms were prioritised to strengthen standards, reduce rejection of Nigerian produce in export markets and attract investment into agro processing and storage.

Abubakar Kyari, minister of Agriculture and Food Security, said the administration’s approach in 2025 is deliberate and systemic.

“Our focus has been on increasing output, stabilising markets and building resilient food systems that can withstand climate, security and economic shocks,” he said.

According to him, agriculture must deliver food security alongside jobs, income and industrial growth.

The livestock sub sector also received renewed attention. Policy actions targeted modernisation, improved animal health and value chain development. Programmes focused on breeding, pasture management and veterinary services recorded early gains, boosting productivity and strengthening investor confidence.

Read also: Insurance seen closing finance gap as climate risks threaten food supply

Aliyu Sabi Abdullahi, minister of state for Agriculture and Food Security, underscored the importance of institutional reform.

“A strong and robust legal framework is crucial for agriculture. It provides the foundation for land ownership, access to finance and proper regulation of inputs such as seeds and fertilisers,” he said.

He added that aligning standards would improve competitiveness and restore confidence in Nigerian agricultural exports.

Farmers and development partners acknowledged the progress while calling for policy consistency.

Kabiru Ibrahim, immediate past president, All Farmers Association of Nigeria (AFAN), said improved policy direction had begun to reflect at farm level.

“What farmers need most is consistency and timely support. When inputs arrive on time and policies are stable, farmers respond with increased production,” he said.

Women farmers also reported gradual improvement in access to programmes and recognition of their role in food systems.

A representative who pleaded anonymity said women farmers remain central to food production at the grassroots, adding that direct access to support delivers immediate impact on food availability.

Development partners echoed similar views.

Hussein Gadain, country representative of the Food and Agriculture Organization (FAO) to Nigeria, said the renewed focus on strengthening food systems and supporting smallholders Is beginning to yield results.