GDP Rise: Farmers Not Benefitting From Agric Sector Growth

Nigeria’s agricultural sector may have posted stronger growth in the second quarter of 2026, but the expansion has yet to translate into commensurate improvements in farmers’ incomes and productivity.

While farmers struggle to recoup investments from the previous harvest amid falling food prices in 2026, insecurity, high input costs and land-tenure constraints continue to erode their profit margins.

The National Bureau of Statistics (NBS), in its Q2 2026 Gross Domestic Product (GDP) report, said agriculture grew by 4.39 per cent year-on-year, up significantly from 2.82 per cent in Q2 2025 and 3.15 per cent in Q1 2026. Agriculture accounted for 26.15 per cent of real GDP during the quarter, while crop production remained a major driver of the non-oil economy.

Farmers however said that the 4.39 per cent real growth recorded by agriculture in Q2 2026 was encouraging, but cautioned that headline sector growth should not be mistaken for improved profitability at farm level.

Speaking exclusively with LEADERSHIP, vice president of the All Farmers Association of Nigeria (AFAN) Daniel Okafor said the increase in agricultural output, as captured by GDP statistics, does not automatically mean that farmers are earning more money.

For producers, profitability is determined by the relationship between output, farm-gate prices and the cost of inputs and services required to produce and move agricultural commodities.

Okafor identified high prices of fertiliser, seeds, labour, transportation and machinery as major constraints eroding farmers’ margins, arguing that stronger sector statistics must ultimately be reflected in improved productivity and earnings at farm level.

For AFAN, the immediate challenge is ensuring that growth measured in national accounts is accompanied by stronger business conditions for the farmers responsible for producing the food and raw materials that underpin the sector.

“The 4.39 per cent growth is encouraging and shows that agriculture remains an important part of Nigeria’s economy.

However, GDP growth does not necessarily mean that farmers’ incomes have increased by the same margin,” he said.

He therefore called for greater access to affordable production inputs, agricultural credit, mechanisation, storage facilities and reliable markets, saying these interventions would help convert sectoral growth into stronger commercial returns for farmers.

He said, “Farmers are still facing high costs of fertiliser, seeds, labour, transportation and machinery, which affect their profitability.

For the growth to have a direct impact on farmers, we need greater access to affordable inputs, credit, mechanisation, storage and reliable markets.”

Insecurity, he added, remains another major threat to the sustainability of agricultural growth. Farmers in some parts of the country are unable to access their farms safely, while displacement has forced others away from their communities and productive assets.

According to him, the disruption affects the entire agricultural value chain, from land preparation and planting to harvesting, transportation and marketing.

Okafor said sustained agricultural expansion would therefore require stronger protection for farming communities, particularly in areas where insecurity has restricted access to farmland.

“Insecurity remains a serious challenge to agricultural production. If farmers cannot work their land safely, it will be difficult to sustain agricultural growth and achieve food security, “he said.

Land tenure represents another structural constraint. According to AFAN, farmers without secure and predictable access to land are less likely to make long-term investments in irrigation, mechanisation and other productivity-enhancing infrastructure.

Okafor added, “Where farmers do not have secure access to land, they may be reluctant or unable to invest in mechanisation, irrigation and other long-term improvements.”

The association consequently urged government and other stakeholders to facilitate easier and more secure access to agricultural land while protecting the rights of landowners and communities.