Rising farmland prices in Nigeria are squeezing smallholder farmers, fuelling land grabs and raising fears over food security and rural poverty

Rising farmland prices in Nigeria are creating an unprecedented land squeeze that threatens smallholder farmers, food production and rural livelihoods, agricultural leaders and industry experts have warned.

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Across the country, the cost of farmland has surged sharply in recent months, driven by urban expansion, real estate pressure and growing competition for limited arable land.

Stakeholders fear that if the trend continues unchecked, many farmers will be priced out of agriculture, deepening food insecurity and rural poverty.

Vice Chairman of the All Farmers Association of Nigeria, Otunba Oke Babafemi, said the escalating cost of farmland is discouraging new entrants from going into agriculture and placing severe strain on existing farmers.

Otunba Babafemi pointed to Epe, Lagos State, where rapid urban sprawl is transforming what was once a predominantly agricultural area into a competitive real estate corridor.

As development pushes deeper into rural communities, farmland has increasingly been converted for residential and commercial use.

“The lands are becoming quite expensive, very, very expensive now,” he said, noting that an acre of farmland in Epe now sells for about N6 million.

Findings indicate that farmland prices now range between N2 million and N8 million per acre nationwide, depending on location.

In Atan, Ota, Ogun State, two acres of farmland were recently offered for N3.6 million, nearly double what similar land cost in 2018.

At Siun, along the Lagos Ibadan Expressway in Ogun State, farmland is selling for about N2.5 million per acre, while prices are slightly lower in parts of Ijebu, where an acre reportedly sold for N800,000.

Around Abuja, farmland remains relatively affordable only at distant outskirts, with six hectares at Paiko selling for N6 million.

Agribusiness expert Debo Thomas said the surge in land prices reflects a tightening supply driven by population growth, urbanisation and increasing competition from both local and foreign investors.

Thomas, Chief Executive Officer of Hastom Food and Farms Limited, described the trend as inevitable, warning that demand for land now far exceeds supply.

He said Nigeria’s land mass, when compared with its rapidly growing population, places intense pressure on available space.

Despite being Africa’s most populous country, Thomas said Nigeria’s land size is comparable to that of Namibia, which has a population of about two million people.

He added that this imbalance is accelerating competition for land for housing, infrastructure and agriculture.

The pressure, he said, is further intensified by foreign interests seeking to acquire large tracts of land.

According to Thomas, Africa holds an estimated 60 to 70 per cent of the world’s arable land, making Nigeria a major target for international investors.

He cited growing foreign acquisitions along the Ore Edo axis, where large expanses of land are being purchased for commercial agriculture, forestry and industrial plantations, including teak and malina trees used for paper and newsprint production.

Thomas said the rising cost of land shows no sign of reversing, warning that without deliberate policy intervention, smallholder farmers risk being edged out by large scale investors and speculative buyers.

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As farmland becomes increasingly unaffordable near urban centres, farmers and analysts say the country faces a critical test of how to balance development, food security and equitable access to land in the years ahead.