Millions of smallholder farmers in Nigeria are trapped in a cycle of debt as falling food prices squeeze their profits, making it harder for them to repay loans taken during the 2025 planting season. Farmers’ profits are harmed by rising input costs following a severe crash in food prices, thus casting a cloud over farmers’ ability to recover their investments. Several agricultural cooperatives have reported high rates of defaults in key agricultural-producing states, a situation that experts say signals increased risk in the agriculture
Millions of smallholder farmers in Nigeria are trapped in a cycle of debt as falling food prices squeeze their profits, making it harder for them to repay loans taken during the 2025 planting season. Farmers’ profits are harmed by rising input costs following a severe crash in food prices, thus casting a cloud over farmers’ ability to recover their investments. Several agricultural cooperatives have reported high rates of defaults in key agricultural-producing states, a situation that experts say signals increased risk in the agriculture