November 11, 2025/CSL Research

Recent data from the National Bureau of Statistics (NBS) indicates that Nigeria’s agricultural sector expanded by 2.82% in real terms in Q2 2025, compared to 2.60% in Q2 2024. On a quarter-on-quarter basis, growth improved from 0.07%, reflecting a modest recovery. However, the sector’s contribution to total GDP slightly declined to 26.17% in Q2 2025, down from 26.53% in the same period of 2024. The agricultural sector comprises four key sub-sectors including Crop Production, Livestock, Forestry, and Fishing.

After recording an all-time low of –1.79% in Q1 2024, the sector has shown signs of recovery in 2025. This rebound follows a challenging period marked by insecurity, climate-related disruptions, and rising input costs. Persistent inflation, which elevated production and distribution expenses, further constrained output and dampened overall performance.

The recent uptick in performance was largely driven by stronger crop output, given its dominant share in the sector. Expanded cultivation areas and greater adoption of improved farming practices helped mitigate the impact of high input and logistics costs. Furthermore, renewed government and development partner engagement, especially through mechanisation initiatives and targeted value-chain programmes, provided additional support. These developments highlight the importance of coordinated policy actions and strategic investment in revitalising the sector.

Despite these gains, the sector remains hampered by deep-rooted structural challenges. Insecurity continues to be the most critical constraint, as insurgency, banditry, kidnappings, and communal conflicts disrupt farming activities, deter investment, and limit access to arable land. Weak market infrastructure including poor storage and inadequate transportation networks has led to high post-harvest losses and restricted market access.

Additionally, rising input and operational costs, driven by persistent inflation, have eroded farmers’ purchasing power and slowed the adoption of modern technologies. Inconsistent government policies and institutional weaknesses have also undermined reform effectiveness, discouraging confidence among both farmers and private-sector investors.

Sustaining and accelerating growth in Nigeria’s agricultural sector will require deliberate and coordinated efforts to address the sector’s deep-rooted structural and institutional challenges. This includes improving access to affordable finance for farmers and agribusinesses, alongside substantial investment in critical infrastructure such as storage facilities, rural roads, and transport networks. Ensuring policy consistency and strengthening institutional capacity are also essential to enhance the effectiveness of reforms and build
investor confidence.

In addition, expanding agricultural education and extension services will help promote the adoption of modern, efficient farming techniques. Greater emphasis on climate-resilient practices, including irrigation development and the use of drought-tolerant seed varieties, is vital to mitigate weather-related risks. Above all, addressing insecurity across key agricultural regions remains central to restoring stability and safeguarding farming operations.

Click here to download full report: ​​CSL Nigeria Daily – 11 November 2025 – Agriculture .pdf​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​