Despite the central role of Agriculture to Nigeria’s socioeconomic stability, contributing significantly to employment, food production, and rural livelihood, yet persistent volatility in farm input prices particularly fertilizers, seeds, agrochemicals, fuel, and labour poses a major threat to agricultural productivity and household welfare. This review systematically synthesizes conceptual, theoretical, and empirical literature on farm inputs price dynamics and their implications for household welfare in Nigeria between 2000 and 2024. The study integrates evidence from fifty-two (52) national and international publications to assess how input cost fluctuations affect productivity, and farmers household’s overall welfare. Findings revealed that rising input prices reduce input utilization, lower yields, and elevate food prices, thereby eroding real household income and welfare. Fertilizer price shocks emerge as the most influential determinant of welfare loss, while energy and fuel price hikes further exacerbate production and consumption costs. While coping mechanisms such as reduced input use, crop diversification, informal credit reliance, and non-farm income diversification offer temporal relief. Gender, regional, and income disparities compound the welfare impact, with smallholder and female-headed households being most vulnerable. Also, policy responses including fertilizer subsidy schemes, credit programs, and market reforms have achieved limited success due to inefficiencies, inadequate coverage, and macroeconomic instability. The review identifies key research gaps related to price transmission, gendered welfare analysis, and integration of climatic variables in welfare modeling. It concludes that stabilizing agricultural input markets, improving credit access, and strengthening institutional capacity are essential to mitigate welfare losses and foster inclusive agricultural growth in Nigeria.