A comprehensive overhaul of Nigeria’s agricultural credit system is necessary to dismantle barriers related to collateral and residency, to enable smallholder farmers’ access much-needed financial resources for improved productivity.
This recommendation is part of a groundbreaking Food Price Survey Report for Nigeria, released by Veriv Africa, a research and advisory company, which also recommended the revival of Staple Crop Processing Zones (SCPZs) and drawing lessons from the defunct Agricultural Transformation Agenda (ATA), which significantly increased formal agricultural lending and food production.
Based on the survey findings, the report outlines several critical proposals to enhance the country’s agricultural productivity and support smallholder farmers. “Firstly, immediate and decisive action is required to address the escalating issues of farmer-herder conflicts and rural kidnappings, which pose a significant threat to farming activities and livelihoods.
“Secondly, prioritising investments in essential rural infrastructure such as roads, irrigation systems, electricity supply, and storage facilities through public-private partnerships are crucial for reducing post-harvest losses and improving market access.”
The report, which is a comprehensive analysis of food price dynamics in six key crop value chains across the country, marks a significant milestone in the development of the Veriv Africa Food Data Dashboard for Nigeria, aimed at providing accurate and timely market intelligence to stakeholders in the Nigerian agricultural sector.
The survey, conducted in February 2025, engaged 543 smallholder farmers across five key states – Ondo (Cocoa), Kano (Sesame, Beans), Niger (Rice, Corn), Kaduna (Tomatoes), and Benue (Yam). The findings offer critical insights into farmer demographics, sentiments, challenges, and priorities, laying the groundwork for data-driven decision-making and policy formulation.
“The survey on Farmer Demographics and Challenges revealed that 84 per cent of surveyed farmers operate on small landholdings of one to four acres, predominantly relying on family labor. Access to finance remains a significant hurdle, with 60 per cent funding their farming activities through personal savings and only 12 per cent accessing formal credit.
“The most pressing challenges identified by farmers are lack of finance (54 per cent); insecurity (21 per cent); and post-harvest losses (12 per cent). The survey also documented a baseline for crop prices across the surveyed regions, providing a snapshot of market conditions at the time of data collection.
“The recorded prices were as follows – Cocoa at N110,000 per 50kg bag, Sesame at N102,305.19 per 50kg bag, Farm-priced un-mi led Rice at N43,750 per 50kg bag, Yam at N39,423.08 per 50-tuber group, Corn at N36,309.52 per 50kg bag, and Tomato at N12,500 per 50kg basket,” the report read.
The survey figures offer valuable insight into the challenges and concerns raised by the farmers. Regarding farmer sentiments and priorities, the survey indicated that while 64 per cent of farmers reported feeling economically better off due to recent high crop prices, a significant 52 per cent expressed a pessimistic outlook for Nigeria’s agricultural sector in the coming year.
Encouragingly, the survey showed that 82.5 per cent intend to continue cultivating their primary crops, with those considering a switch citing high input costs, pests, diseases, and low yields as their main reasons, adding that the most urgently requested interventions from farmers include access to finance (52 per cent), improved security (22 per cent), and subsidised inputs (19 per cent).
To bridge the critical knowledge gaps, the report recommends a strategic initiative to train and deploy 50,000 digitised agricultural extension agents by 2026, focusing on key states such as Benue, Kaduna, and Niger.
The report stated that the survey provides a crucial baseline for understanding the current state of key crop prices in Nigeria. “The data and insights generated will be integral to the development of the Veriv Africa Food Price and Production Data Dashboard, which aims to empower policymakers, agribusinesses, financial institutions, and other stakeholders with the information needed to make informed decisions and drive sustainable growth in the agricultural sector.”
