Next.js developers often encounter challenges with enabling production server-side sourcemaps, which are essential for converting transpiled or compiled code back to its original form, aiding in error debugging. Sourcemaps provide significant benefits such as saving bandwidth by compressing JavaScript codebases, resulting in reduced file sizes and faster build times. While sourcemaps offer a minor security advantage by not exposing the original source code directly in production, their primary value lies in improving development efficiency. Client-side sourcemaps in Next.js can be activated by setting the `productionBrowserSourceMaps` to true in the configuration file, whereas server-side sourcemaps require a more complex configuration change to the webpack settings. Tools like Highlight.io simplify this process by automatically enhancing error monitoring products to include proper stack traces, making it easier for developers to manage errors without extensive webpack knowledge.