News in Brief:
– Declining food prices bring relief to consumers but raise concerns among farmers about potential financial losses and long-term agricultural sustainability.
– The government is tasked with balancing these competing interests through strategic policy interventions and investments in the agricultural sector.
A complex economic scenario is unfolding across Nigeria as food prices experience a notable decline, sparking a paradox, where consumers rejoice while agricultural producers express deep concern.
Reports from the National Bureau of Statistics (NBS) and on-the-ground market surveys confirm a reduction in the cost of staple commodities like rice, beans, yam, and maize.
In late 2024 and early 2025, Nigeria experienced significant spikes in food prices, driven by factors like insecurity in farming regions, fuel price increases, and overall economic pressures.
Current trends
More recent data, particularly from March 2025, shows a trend of decreasing prices for these staple food items.
A 50kg bag of rice used to cost between ₦90,000 to ₦110,000 but has fallen to around about ₦75,000 to ₦80,000. Beans also dropped from ₦105,000 to ₦150,000 to around ₦80,000 per bag. A market survey indicates that 120 pieces of yam, which were sold at ₦300,000, now sell for between ₦180,000 to ₦200,000.
However, this development, while bringing much-needed relief to households, it has ignited a debate about the sustainability of the trend and its impact on the agricultural sector.
Consumer relief: a welcome respite
Generally, for many Nigerians, grappling with the escalating cost of living, the decrease in food prices is a significant reprieve.
Markets in major cities like Lagos, Kano, and Ibadan are witnessing increased activity as consumers take advantage of the lower prices.
Hajiya Fatima Awual, a mother of four kids living in Kano, expressed relief at the drop in food prices, as a welcome development towards optimal family nourishment.
“The cost of feeding is much reduced, compared to a few months ago, so this price drop is a blessing, especially for me, a widow with four dependents on a basic school teacher’s salary,” one respondent told this publication.
Meanwhile, market vendors have reported a surge in sales. Customers are now purchasing larger quantities than usual, although the general sentiment among urban dwellers is one of cautious optimism, hoping that the trend will continue.
Farmers’ fear: a threat to livelihoods
Conversely, the jubilation among consumers is sharply contrasted by the apprehension among farmers and agricultural stakeholders. The latter fear that the falling prices could lead to substantial financial losses and discourage future production.
According to Mr Michael Okirika, a yam farmer in Benue state, “we bought fertilisers and seeds at high prices, so If we sell our produce at these lower prices, we will make nothing, or even lose money.”
Also, many farmers express worry that the prices might be due to the government allowing more food imports, which could cripple domestic farming.
Expert analysis: balancing consumer and producer interests
Meanwhile, economists and agricultural experts are analysing the complex dynamics behind the price drop.
They point to a combination of factors driving the decline. These include; improved security in some agricultural zones, government interventions aimed at stabilising the economy, and the recent rebasing of the CPI by the NBS.
The lifting of import bans on some food items is also being cited as a potential cause. According to Dr Ngozi Okafor, an agricultural economist, “it’s crucial to ensure that these price reductions are not just a temporary fluctuation. We need policies that promote long-term stability and growth in the agricultural sector.”
Experts warn of the danger of policies that favour short term consumer relief, at the expense of long term domestic agricultural growth.
They are calling for targeted government interventions to support farmers, such as subsidies for inputs, improved access to credit, and investments in agricultural infrastructure.
Additionally, they say the government must watch the import/export market closely, to ensure that domestic farmers are not unfairly harmed.
Government response: efforts to sustain the trend
The Nigerian government has acknowledged the concerns of farmers and reiterated its commitment to ensuring a sustainable and inclusive agricultural sector. Officials have highlighted ongoing efforts to strengthen agricultural value chains, improve infrastructure, and enhance food security.
However, the nation’s minster of agriculture and food security, Senator Abubakar Kyari, debunked the claim that the administration relied on food imports to stabilise domestic food prices.
“Contrary to the claims of naysayers, we did not import food. The recent drop in food prices across Nigerian markets is a direct result of the deliberate efforts of our President and leader, Bola Ahmed Tinubu, GCFR, to ensure food affordability for all Nigerians,” he claimed.
Subsequently, the government pledged to address security challenges in farming regions to ensure consistent agricultural production. They also stated they will monitor the effects of import policies, and adjust them as needed.
