FG Launches New Price Guarantee Scheme For 2m Farmers

… Flags-off fertiliser distribution to farmers

The federal government on Friday launched a new Guaranteed Minimum Price (GMP) model for two million smallholder farmers while flagging off the distribution of 10 million bags of fertiliser under the Renewed Hope Smallholder Support and Value Chain Fund (RH-SVCF).

Minister of Agriculture and Food Security, Abubakar Kyari said the move is aimed at improving productivity, strengthening value chains and protecting farmers from exploitative market prices.

The minister announced the initiative at the flag-off in Zaria, Kaduna State, saying the programme represents a major shift from previous intervention models by providing farmers with support from planting through to harvest and market access.

According to the minister, in a statement by the ministery’s head of Information Department, Ezeaja Ikemefuna, every beneficiary farmer will be linked to a farmer aggregation company, with Arzikin Noma leading the implementation in Zaria.

The statement noted that the companies will provide certified seeds, fertiliser, extension services and guaranteed off-take of produce at government-approved minimum prices designed to shield farmers from distress sales.

Kyari said the initiative goes beyond the distribution of agricultural inputs by creating an institutional framework that supports farmers throughout the production cycle.

“The biggest shift is not the volume of inputs, but the structure of delivery. From now on, there is an institution beside you when you plant, and an institution beside you when you sell. For generations, farmers carried every risk alone. They borrowed to plant. They prayed for rain. And at harvest, they met a buyer who knew they were desperate. What changes today.

Fertilizer in August is a different commodity from fertilizer in July… The farmer’s success and the company’s success become the same thing… what our farmers grow will become food and feed here at home…

The Federal Ministry of Agriculture and Food Security stands squarely behind the farmer. We will not abandon you at planting. We will not abandon you at harvest. A nation that cannot feed itself holds its independence on loan… farm well this season, and hold us to our word,” the minister said.

Kyari noted that one-third of the programme’s beneficiaries are women, adding that timely delivery of fertiliser during the planting season is essential to achieving higher yields.

He explained that the guaranteed pricing mechanism aligned the interests of farmers and aggregators by ensuring both parties benefit from increased productivity, while investments in local processing will boost food production, livestock feed and national food security.

Kyari commended the Bank of Agriculture and Arzikin Noma for ensuring prompt delivery of inputs ahead of the peak planting period, noting that the private sector partner has expanded its farmer network from fewer than 3,000 to more than 400,000 farmers, with a target of reaching one million by 2030.

In his remarks, Group Managing Director of Arzikin Noma Africa, High Chief Adeoluwa Michael Adeshola, said the company was established to provide lasting solutions to challenges confronting Nigerian farmers, stressing that sustainable agricultural transformation requires collaboration among government, financial institutions, development partners, traditional institutions and the private sector.

Also speaking, the Managing Director and Chief Executive Officer of the Bank of Agriculture, Mr. Ayodeji Oludare Sotinrin, said the bank is building an integrated agricultural ecosystem that combines quality inputs, affordable financing, mechanisation, aggregation systems, structured markets and value chain partnerships to improve farmers’ incomes.

Sotinrin disclosed that the programme is expected to reach two million smallholder farmers nationwide with over 10 million bags of fertiliser.

He added that nearly 300,000 farmers have already been onboarded, while more than 1.1 million bags of fertiliser and 16,470 metric tonnes of improved seeds are being deployed through 20 Farmer Aggregation Companies operating across more than 20 states, supported by 15 accredited input suppliers.