Business
Soaring land prices threaten food production
The soaring prices of land and the prevalence of land grabs are creating an unprecedented land squeeze that threatens the livelihoods of farmers and the stability of food production. In recent months, there has been a troubling increase in farmland prices throughout the nation. It has been noted that if this upward trend continues, smallholder farmers may find it difficult to acquire land for small-scale food production, leading to dire consequences such as rural poverty and food insecurity.
Vice Chairman, All Farmers Association of Nigeria (AFAN), Otunba Oke Babafemi expressed concerns over the high cost of farmland, adding that it was discouraging new entrants from going into agriculture.
According to him, the rapidly evolving landscape of Epe is witnessing a dramatic shift as the encroaching urban sprawl transforms what was once a quiet agricultural hub into a competitive real estate frontier. As development moves closer to the hinterlands, he noted that the rising cost of land has become a central concern for those attempting to maintain the area’s farming heritage.
“The lands are becoming quite expensive, very, very expensive now,” he noted.
When asked about current rates, he said: “An acre goes for N6 million in Epe.”
Farmland values across the country have continued to rise with an acre selling for between N2 million and N8 million depending on the area.
For instance, two acres of farmland were put up for sale at N3.6 million at Atan, Ota, Ogun State. These would have been half the price in 2018.
Acres of farmland for sale at Siun, Ogun State, off Lagos-Ibadan Expressway, are selling for N2.5 million per acre. In Ijebu, Ogun State, an acre of farmland sold for N800, 000.
From The Nation findings, farmlands are only affordable at the outskirts. For example, six hectares of farmland at Paiko around Abuja is sold for N6 million.
According to industry expert , Debo Thomas, the c surge in the cost of farmland across the country is a trend driven by a tightening squeeze on available space,
Addressing the rapid appreciation of property values, Thomas, Chief Executive, Hastom Food & Farms Limited, noted that the market is reacting to a fundamental reality of geography and growth. “It’s a trend that is going to happen anyways. Because if you look at the size of Nigeria, we all think Nigeria is peak, but Nigeria is actually not peak,” he explained.
Thomas highlighted a startling geographical comparison to illustrate why land is becoming a premium commodity. His words: “While Nigeria holds the largest population in Africa and one of the highest globally, its physical footprint is surprisingly limited. If you look at our land size, our land size is almost the same as the size of Namibia,” Thomas pointed out, noting that Namibia’s population is only about 2 million people. This disparity underscores a looming crisis of space. “People need more land to build, people need land to farm. And people have seen the future that land is going to be more scarce. The pressure on local resources is being further intensified by a massive influx of international interests. Thomas observed that global players have recognised that Africa holds roughly 60 to 70 per cent of the world’s arable land, leading to a surge in acquisitions. “People need more land to build, people need land to farm. They have seen the future that land is going to be more scarce. And foreigners too are not helping the matter. They are really coming here to buy land,” he explained.
Thomas noted “ if you travel from Ore to Edo State, the presence of international investors is undeniable. They are buying a serious amount of land for agriculture. They are planting Malina or Teak… they are manufacturing newsprint , paper and so many things like that.”
He noted that the rising costs of land is showing no sign of reversing. “The demand for land is high. The supply of land is less than demand. They are buying a serious amount of land for agriculture. “
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