Nigeria’s agricultural sector is facing mounting pressure from rising input costs, soaring freight charges, and persistent policy inconsistencies, raising concerns about long-term sustainability and food security.
In this exclusive interview with AgroNigeria, the President of the All Farmers Association of Nigeria (AFAN), Farouk Rabiu Mudi, speaks on the key drivers of escalating production costs, the impact of global and domestic disruptions, and the urgent reforms needed to strengthen the country’s agricultural value chain.
- Farmers across Nigeria continue to report rising production costs. What are the major drivers behind these increases today?
The rising cost of agricultural production is largely driven by increases in petroleum prices. Once fuel costs go up, the prices of inputs also rise, because the materials and processes involved in producing them become more expensive.
For example, transporting a trailer load of goods from Kano to Lagos previously cost between ₦400,000 and ₦800,000. Today, that same trip costs between ₦3 million and ₦4 million. This sharp increase in transportation costs has a direct impact on market prices, making agricultural production significantly more expensive.
- How are global supply chain disruptions affecting the cost of inputs such as fertilizers, machinery, and agrochemicals?
The surge in input costs became more pronounced following the removal of the fuel subsidy. That policy shift marked a turning point, after which the prices of fertilizers, machinery, and agrochemicals began to rise significantly, affecting farmers nationwide.
- One recurring challenge is the gap between production and processing capacity. How serious is this challenge across Nigeria’s agricultural value chains?
This challenge is quite severe. Processors invest heavily in establishing and maintaining their facilities, yet high input costs continue to shrink profit margins across the value chain.
At the same time, government waivers allow the importation of products that are already being produced locally. These imported goods are often cheaper due to subsidies and support systems in their countries of origin, making it difficult for local producers to compete.
This price disparity discourages farmers and, in many cases, forces them out of business.
- What role should agro-industrial companies play in strengthening local processing ecosystems?
Agro-industrial companies require stronger financial backing, particularly through interventions such as those from the Central Bank of Nigeria (CBN).
We have engaged with the government, seeking opportunities to provide practical input on improving the system. However, many of those advising the government lack agricultural expertise, which affects the quality of policy decisions.
Involving experienced stakeholders from the sector will lead to more effective and impactful policies.
- With rising freight costs and global logistics disruptions, how vulnerable is Nigeria’s agricultural sector to international market shocks?
Nigeria’s agricultural sector is already grappling with serious internal challenges, including high input costs, low output prices, insecurity, and the rising cost of living.
At this stage, global market shocks are a secondary concern, as domestic production systems are yet to stabilize. Without addressing these internal issues, competing globally will remain difficult.
Strengthening internal systems should be the immediate priority.
- Are Nigerian farmers prepared to take advantage of opportunities under the African Continental Free Trade Area (AfCFTA)?
Yes, Nigerian farmers are ready. There is strong willingness within the sector to take advantage of both domestic and international market opportunities, including those presented by AfCFTA.
- What key reforms or investments would most improve productivity and farmer resilience?
A major constraint is the lack of mechanization, as many smallholder farmers still rely heavily on manual methods, which limits productivity.
There is also a need to improve irrigation systems and strengthen extension services. Addressing these three areas—mechanization, irrigation, and extension services—will significantly enhance productivity and build resilience across the sector.
- How can stronger public-private partnerships help stabilize agricultural value chains and improve food security?
Stronger public-private partnerships are critical, but policy inconsistency remains a major challenge. Successive administrations often abandon existing policies, even those delivering results, in favor of new ones. This disrupts progress and creates uncertainty.
Agriculture should be driven more by the private sector, with government providing an enabling environment through security and targeted support. This would allow the sector to become more commercially viable and contribute meaningfully to national revenue.
Currently, agriculture is often treated as a sector dependent on government support, rather than a business. This perception affects engagement with farmers, especially during political cycles when promises are made but rarely fulfilled.
In many countries, subsidies extend beyond inputs to markets and exports. In Nigeria, input subsidies are often undermined by inefficiencies and corruption, preventing them from reaching intended beneficiaries. A market-focused subsidy approach would be more effective.
Encouraging private sector participation will promote commercialization, improve production capacity, and strengthen collaboration with government.
For instance, Nigeria produces about 80–85% of its rice needs. Rather than supporting farmers to close the remaining gap, import waivers are granted, flooding the market with foreign rice and discouraging local production.
To move forward, the private sector must take a leading role, while government engages directly with genuine farmers and stakeholders to make informed, practical decisions.
