Across Nigeria’s farmlands, a quiet crisis is unfolding. The prices of farm produce have continued to fall, leaving millions of smallholder farmers in distress. What may seem like a market correction is, in reality, a complex web of economic consequences that stretches from rural communities to the national economy.
In many states, farmers now sell their crops for less than the cost of production. The situation is the same across regions — maize, rice, and vegetables are flooding local markets, but buyers are few. Production costs, driven by high prices of fertilizer, fuel, and transportation, continue to rise, while returns from sales keep shrinking.
The hardship in the countryside is deepening. With lower incomes, farming families are cutting down on spending, affecting their ability to meet basic needs such as education, healthcare, and food. Local traders, artisans, and service providers who depend on farmers’ patronage are also struggling to stay afloat. Rural markets are slowing down, and poverty is spreading rapidly.
The Federal Government’s decision to allow large-scale food importation has further worsened the situation. While the policy was intended to reduce inflation and make food affordable for urban consumers, it has come at a heavy cost to local producers.
Cheap imported rice, wheat, and poultry now compete directly with locally produced food, pushing down farm-gate prices and discouraging local production.
This policy contradicts the government’s commitment to promoting local production and achieving food self-sufficiency. Instead of strengthening farmers through targeted subsidies, improved storage facilities, and affordable credit, the importation policy has undermined their competitiveness.
Importing food may provide short-term relief to consumers, but it weakens confidence in domestic agriculture and discourages farmers from planting in subsequent seasons.
Nigeria’s agricultural sector holds vast potential to create jobs, boost exports, and drive inclusive economic growth. Yet, inconsistent policies, limited market access, and weak support systems continue to undermine its performance.
Falling prices not only affect farmers’ incomes but also have ripple effects on rural businesses, agro-industries, and even national revenue.
Industries that depend on farm produce, such as food processing, beverages, and textiles, are also feeling the impact. When farmers scale back production due to low prices, raw material supplies become unstable, reducing factory output and threatening jobs.
Financial institutions that lend to the sector face higher default risks, further discouraging investment in agriculture.
The long-term consequences could be devastating. As returns from farming decline, more young people are abandoning agriculture for uncertain opportunities in urban areas.
This growing rural-to-urban migration worsens unemployment, social pressure, and food insecurity.
On a broader scale, the fall in farm produce prices and the rise in food imports have negative implications for Nigeria’s balance of trade. The country spends more foreign exchange on imported food while earning less from agricultural exports such as cocoa, sesame, and cashew. This weakens the naira, increases import dependency, and contributes to inflation in other sectors.
Beyond the economic effects lies the social and psychological toll. Many farmers are losing faith in agriculture as a viable means of livelihood. The sense of neglect and frustration is spreading, particularly in regions that depend heavily on farming for survival.
The way forward lies in restoring confidence in local agriculture. Instead of depending on food imports, the government should focus on policies that support farmers directly.
These include production subsidies, guaranteed minimum prices for key crops, improved access to credit, and investment in storage, processing, and transportation infrastructure.
Nigeria’s food security cannot be achieved through import dependence. Supporting local farmers is not only an economic necessity but also a strategic imperative for national stability. When farmers prosper, the nation prospers. When they struggle, the entire country bears the consequences.
