Rising farming input cost most pressing challenge to affordable food prices – FG

Aliyu Abdullahi, the minister of State for Agriculture and Food Security saod this on Tuesday while presenting the ministry’s 2026 budget proposal before a joint session of the Senate and House of Representatives Committees on Agricultural Production, Services and Rural Development,

Abdullahi, explained that the rising cost is largely driven by broader macroeconomic pressures beyond the direct control of the ministry.

Abdullahi said farmers now face a difficult balance between rising production costs and consumer expectations for lower food prices.

According to him, while Nigerians demand affordable food, farmers are increasingly concerned that market prices do not reflect the cost of production, making sustainability uncertain for many producers.

He urged lawmakers to support policy interventions that would improve access to inputs, support domestic fertiliser production and reduce cost pressures across the agricultural value chain.

The minister also emphasised the need for stronger technology adoption to improve productivity, noting that access to high yielding crop varieties and effective extension services remains critical to raising output levels.

He said Nigeria’s agricultural productivity remains below potential, making technological advancement and knowledge transfer essential to long term food security.

On budget implementation, Abdullahi explained that personnel expenditure under the 2025 appropriation was largely implemented, but capital project execution has been significantly constrained by delayed releases. For the main ministry, about 30 percent of the capital allocation representing roughly ₦18 billion is yet to be released.

He added that only funds tied to constituency related projects have seen partial disbursement, with about ₦19.8 billion released so far.

He said the limited capital releases have slowed programme execution and restricted the ministry’s capacity to scale support for farmers and production systems.

For the 2026 fiscal year, Abdullahi said the agricultural sector is projected to receive about N1 trillion in total allocation. Within this envelope, the Federal Ministry of Agriculture and Food Security is expected to receive approximately N262 billion for capital expenditure and about N19.18 billion for recurrent costs, including personnel and overhead.

Bello Ka’oje, chairman of the House of Representatives Committee on Agricultural Production and Services,  warned that reduced funding for the agricultural sector could undermine Nigeria’s food security ambitions and weaken economic recovery efforts if urgent corrective measures are not taken.

He said the committee would undertake a holistic review of the ministry’s performance across three fiscal cycles. For the 2024 budget, the ministry is expected to provide a detailed implementation report linking expenditure to verifiable outcomes and explaining any delays or challenges.

The lawmaker expressed concern over what he described as a troubling contradiction in budgetary allocations to the agricultural sector. He noted that while total planned national expenditure is projected to rise by 21 percent to N58.47 trillion in 2026, the allocation to the Federal Ministry of Agriculture and Food Security has declined sharply from N2.22 trillion in 2025 to N1.45 trillion in the 2026 proposal.

He further observed that allocations to agencies operating under the National Agricultural Technology and Innovation Plan and the National Agricultural Sector Investment Plan have also been reduced by more than 15 percent.
According to Ka’oje, the reduction threatens to weaken the sector at a time when agriculture is expected to play a leading role in driving the projected 4.7 percent economic growth in 2026.