Nigeria's Economy
Farming, Food Prices and Insecurity
How insecurity, currency weakness and import bans have driven high food inflation in Nigeria, and the challenges facing its farmers.
Agriculture employs a large share of Nigerians.
Crops
- Cassava: Nigeria is the world’s largest producer.
- Yams, maize, rice, sorghum and cocoa.
Food inflation
Food inflation exceeded 40 percent in 2024, according to official figures.
Causes
- Insecurity: conflicts between farmers and herders, banditry and insurgency in the north make farming dangerous.
- Currency weakness raising imported input costs.
- Import bans on some foods, like rice, raising prices.
- Poor roads and storage.
- Climate shocks.
Rice policy
Nigeria closed land borders in 2019 to stop rice smuggling and boost local production. Rice prices rose sharply.
Responses
- Temporary duty waivers on food imports in 2024.
- Programmes supporting mechanisation and fertiliser.
Comparison with India
India’s MSP and procurement system provides more price stability for farmers and consumers, though with its own costs.
A farmer in northern Nigeria stops planting distant fields because of attacks by armed groups, reducing his harvest and local food supply.
Insecurity, currency and trade policy drive Nigerian food prices.
- Nigeria is the world's largest cassava producer.
- Food inflation exceeded 40 percent in 2024.
- Insecurity, currency weakness and import bans drive prices.
- The 2019 border closure raised rice prices.
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