Foreign Investment in Nigeria’s Agriculture Sector Surges 108%

News in Brief:

-Nigeria’s agriculture sector attracted $51.19 million in foreign investment in Q4 2025, marking strong quarterly and yearly growth.

-Farmers and agribusinesses continue to face major challenges, including insecurity, rising input costs, and climate-related disruptions.

Foreign investment in Nigeria’s agriculture sector rebounded strongly in the fourth quarter of 2025, signalling renewed investor confidence despite ongoing challenges facing farmers and agribusinesses.

Data from the National Bureau of Statistics (NBS) shows that the sector attracted $51.19 million in capital importation in Q4 2025, representing a 107% increase from the previous quarter and a significant 215% rise year-on-year.

This recovery comes amid a broader increase in Nigeria’s total capital inflows, which rose to $6.44 billion in Q4 2025, up 26.61% from the same period in 2024.

Investment Rebounds but Share Remains Low

Despite the growth, agriculture accounted for just 0.79% of total capital importation during the quarter, highlighting the sector’s continued struggle to attract a larger share of foreign investment compared to banking and finance.

Over the course of 2025, inflows into agriculture fluctuated. The sector recorded $24.15 million in Q1, peaked at $67.24 million in Q2, declined to $24.67 million in Q3, and rebounded in Q4.

On an annual basis, foreign direct investment (FDI) into agriculture rose sharply to $167.3 million in 2025, up 224% from $51.7 million in 2024. Analysts attribute this growth to renewed investor interest driven by economic reforms and the essential nature of food production.

According to AfricanFarmer Mogaji, CEO of Agbado Value-Chain Ltd, improved investor confidence and government support are key drivers. He noted that Nigeria’s growing population continues to make agriculture an attractive sector, as food demand remains constant.

Farmers Face Rising Costs and Insecurity

However, the investment surge comes against a backdrop of significant challenges for farmers. In 2025, insecurity forced many producers to abandon farmlands, disrupting output and supply chains.

At the same time, the cost of key inputs, including seeds, fertilisers, and agrochemicals, tripled due to currency devaluation and inflation, squeezing farmers' and agribusiness operators' profit margins.

Climate change also intensified production risks, with erratic weather patterns affecting yields across several regions.

While increased youth participation and mechanised farming supported modest sector growth of 2.92% in 2025, stakeholders say more targeted investment is needed.

For agribusiness owners, the latest figures suggest a cautiously optimistic outlook—but one that depends on improved security, lower input costs, and sustained policy support to fully unlock the sector’s potential.