Abstract
Dry-season vegetable production plays a vital role in food security, nutrition, and rural livelihoods in Nigeria. This study assessed the profitability and cost efficiency of dry-season leafy vegetable production in Ogun State, Nigeria. A multi-stage sampling technique was used to select 240 vegetable farmers from whom primary data were collected using a structured questionnaire. Budgetary analysis was employed to evaluate the cost and return structure of vegetable farming. A stochastic cost frontier model was used to estimate cost efficiency. The findings revealed that the majority of the respondents were male (63.3%), married (74.2%), with an average age of 42 years and an average farming experience of 15.7 years. Most operated small farm sizes averaging 0.52 hectares. Budgetary analysis showed that total revenue averaged ₦238,506.25 per season, with a net farm income of ₦124,547.95. The benefit-cost ratio was 2.09, rate of return on investment was 109%, and profitability index was 0.52, indicating strong financial viability. However, the stochastic cost frontier analysis revealed that 78.2% of the variation in total production costs was due to inefficiency. Seed cost had the highest impact on total cost, followed by labour cost. Farming experience significantly reduced inefficiency, while household size increased it. Cost efficiency had a mean score of 0.749, suggesting that about 25.1% of resources could be saved if inputs were optimally allocated. In conclusion, dry-season leafy vegetable production is economically viable but constrained by cost inefficiencies driven by high seed and labour costs, household size, and lack of modern farming support. To enhance productivity and profitability, this study recommends the provision of subsidies for seeds and agrochemicals. Additionally, targeted training on efficient resource use and improved access to credit should be prioritized to support smallholder farmers in achieving optimal returns and contributing more effectively to rural development.