The rising production costs of fertilisers, herbicides and machinery were some of the biggest challenges facing the agricultural sector last year.

While Nigeria recorded improved yields in key staple crops such as rice, maize, cassava and yam, the gains were largely undermined by the high cost of inputs, which significantly reduced farmers’ profit margins and, in some cases, forced a scaling back of production.

These were the views of the Executive Director, Corporate Services, Origin Tech Group Nigeria, Olusesan Ayeni, during an interview with The Guardian in Lagos last week.

Ayeni explained that the cost of fertilisers and agro-chemicals remained high throughout the year, attributing the problem to weak naira, high energy cost and logistics challenges.

According to him, many smallholder farmers, who account for the bulk of domestic food production, struggled to afford inputs needed to maintain or expand cultivation.

“The reality in 2025 is that even when yields improved, farmers were not making enough profit because the cost of fertiliser, herbicides and machinery kept rising,” he said.

He said the pressure on farmers was further compounded by falling market prices for staples, following the Federal Government’s temporary exemption of selected food items from import duties.

The policy, introduced to curb food inflation and ease pressure on consumers, he maintained, led to a sharp drop in the prices of rice, maize, beans and other staples.

He said: “Following the Federal government’s emergency declaration exempting selected food staples from import duties, prices of essential commodities dropped sharply.

“According to insights from Sensale Research, a sub-national Of Origin Tech Group, the average price of locally produced rice declined to about N65,000 from a peak of N90,000, while foreign parboiled rice fell to an average of N62,000 from N92,000. Prices of maize, beans and Garri also recorded significant declines.”

He, however, warned that the widening gap between input costs and output prices could have long-term consequences for food supply.

Beyond costs, he noted, farmers also faced climate-related shocks and security challenges during the year, stressing that flooding in parts of Niger state, especially in Mokwa, destroyed thousands of hectares of farmland and key transport infrastructure.

Ayeni mentioned insecurity in farming communities across the North-Central and other regions as some of the challenges that confronted the sector in the past year.

He also called for broader support for farmers from public and private sectors, noting that targeted subsidies for fertilisers and herbicides, improved access to affordable credit, and sustained investment in mechanisation were critical to cushioning farmers against rising costs.

He also charged the government to address the high cost of farm inputs in 2026, saying that this would be crucial to sustaining recent gains in food production and preventing fresh pressure on food prices within the year.