Nigeria’s Food Inflation Eases Sharply, but Farmer Concerns Remain

News in Brief:

-Nigeria’s food inflation fell sharply to 10.84% year-on-year in December 2025, driven by declining prices of major staples and offering relief to consumers after a volatile 2024.

-Farmer groups and lawmakers warn that prices have dropped below production costs, calling for urgent government intervention to protect farmers and sustain food supply.

Nigeria’s food inflation rate dropped significantly in December 2025, offering relief to consumers after a prolonged period of steep price increases, but raising fresh concerns about farmer profitability and long-term food supply.

According to the latest data, food inflation stood at 10.84% year-on-year in December 2025, a sharp decline from 39.84% recorded in December 2024. On a month-on-month basis, food inflation fell to -0.36%, representing a 1.49 percentage point drop from November 2025’s 1.13%.

The decline was driven by falling average prices of key food items, including tomatoes, garri, eggs, potatoes, carrots, millet, vegetables, plantain, beans, wheat grain, ground pepper and fresh onions. Despite the recent moderation, the average annual food inflation rate for the 12 months ending December 2025 stood at 22.00%, reflecting lingering pressure over the year.

Yet, this marks a sharp reversal from 2024, when food inflation averaged 39.12%, driven by price increases in staples such as yams, rice, maize, guinea corn, and dried fish. In December 2024 alone, food inflation rose 39.84% year-on-year, highlighting the scale of improvement recorded in 2025.

However, the easing inflation has sparked alarm within the agricultural sector. The All Farmers Association of Nigeria (AFAN) warned that falling food prices have dropped below production costs for many farmers, forcing distress sales and heavy losses. AFAN cautioned that sustained losses could discourage farmers, reduce future output, and threaten food security.

Similarly, Nigeria’s Senate has urged the federal government to provide emergency support to farmers facing crashing produce prices alongside persistently high input costs, particularly fertiliser. Lawmakers warned that without balanced interventions, farmers may cut back production or exit agriculture entirely.

Both AFAN and the Senate have called for price stabilisation measures, strategic government offtake, affordable inputs, and improved storage and market systems to protect farmers while keeping food affordable for consumers.