Farm produce cost rises by 29%, NBS reports

Farm produce cost rises by 29%, NBS reports

There is a 28.98% rise in the average cost of farm produce between January and May 2025, signalling a deepening crisis in Nigeria’s agricultural sector. This is according to the National Bureau of Statistics.

According to the NBS, the price index for farm produce surged from 110.5 in January to 142.53 in May 2025.

This sharp increase, particularly pronounced in May, highlights the mounting pressure on local food prices, largely driven by worsening insecurity in the country.

A price index is a statistical measure that tracks the changes in the price level of a selected group of goods and services over time.

It helps to assess inflation or deflation by comparing the current price of the selected items to their price in a base period.

The NBS data shows a steady rise in the price of farm produce from January to May.

In January, the price index stood at 110.5, and by February, it had increased by 1.77% to 112.46.

The index rose by another 2.65% in March to 115.43, before a smaller increase of 0.88% in April, bringing the price to 116.46.

However, the most alarming surge occurred between April and May, when the price jumped by 22.28% to 142.53.

The increase highlights the underlying disruptions in agricultural production, which have been attributed to the ongoing insecurity that has crippled farming activities in various parts of the country, especially in the food basket of the nation, Benue.

Food inflation in Benue State had reached 51.8% year-on-year, alongside a 25.6% monthly increase in food prices in April 2025.

The overall inflation rate in Benue was 34.3%, rising 12.8% month-on-month in April.

By May 2o25, Benue State recorded a significant drop of 57.53% in food inflation, falling to 22.0%, despite ongoing violence and killings in parts of the state.

The NBS report also showed that, although food inflation moderated on a year-on-year basis, Benue still experienced a 4.1% increase in food prices month-on-month, reflecting persistent short-term pressures on supply.

Overall headline inflation in the state stood at 25.9% year-on-year and 3.1% month-on-month.

The Imported Food Price Index has shown more stability, standing at 111.5 in January and rose modestly by 1.3% to 113.4 in February.

The increase continued at a slower pace, with the index reaching 113.9 in March, marking a 0.44% rise.

In April, the Imported Food Index peaked at 115.3, a 1.23% increase from March.

However, in May, the index saw a slight decline of 1.39%, dropping to 113.7.

Nigerians imported food and beverages valued at N1.67 trillion between January and March 2025, according to data from the NBS.

The figure represents a marginal increase of 5% compared to the N1.59tn recorded in the corresponding period of 2024.

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