Centre Demands Policy Shift To Support Farmers, Stabilise Food Prices

In a bid to protect farmers’ incomes and investments while ensuring food remains affordable for all households, the Centre for the Promotion of Private Enterprise (CPPE) has advocated for a policy adjustment aimed at aligning the interests of both farmers and consumers,

In a policy note titled ‘CPPE Policy Brief on Sustainable Food Security’, the director of CPPE, Dr Muda Yusuf, highlighted the need for immediate action to safeguard Nigeria’s agricultural sector and food security goals.

He emphasised that while the recent government strategies have resulted in lower food prices and eased food inflation, the agricultural sector has faced challenges, with many producers experiencing significant losses due to falling prices of essential commodities.

Yusuf acknowledged the positive impact of reduced food costs on consumer welfare but urged that it is crucial not to overlook the challenges faced by farmers and other stakeholders in the agricultural value chain.

He called for a balanced approach that prioritises two key national objectives: maintaining affordable food prices for consumers and ensuring financial stability for farmers.

Yusuf highlighted the pressing policy dilemma this poses, asserting that Nigeria must cultivate a policy environment that fosters confidence and encourages investment in agriculture, a vital sector for employment and economic stability.

To achieve this, he called for recalibrating existing policies to ensure that farmers can continue to operate effectively, rural incomes are safeguarded, and investor confidence is sustained, while keeping food accessible to Nigerian households.

“Recent surges in food imports, particularly of staples like rice, maize, and soybeans, have created significant challenges within the agricultural investment landscape. While consumers may benefit from lower prices, the long-term implications for farmers are concerning, potentially leading to decreased production, diminished incentives, and a return to cycles of scarcity and higher prices.”

He proposed the urgent establishment of a clear, rules-based, and market-friendly Farm Price Stabilisation and Farmer Income Protection Framework, saying that “this framework should aim to mitigate harmful price fluctuations caused by imports, prevent distress sales, and enhance farmer livelihoods, thereby strengthening the agricultural value chain and ensuring stable supply conditions for both processors and consumers.”

On stabilisation programme, CPPE CEO said, a key pillar is the introduction of Minimum Guaranteed Prices (MGP) or price floors for selected strategic commodities, noting that “this is a global best practice for protecting farmers against severe price collapses.

He recommended that Nigeria begin with four priority staples, such as Maize, Rice (paddy), Sorghum and Soybeans, explaining that “the MGP system should not become an open-ended government purchase programme. Rather, it should operate strictly as a stabilising backstop. When market prices fall below the support price, the government can intervene through licensed agencies and aggregators to purchase at the support price.”

According to Yusuf, Nigeria’s agricultural transformation hinges on stabilising farmer incomes, as price collapses can deter farming, curtail production over time, and exacerbate rural poverty.

He advocated for a comprehensive framework that incorporates price-stabilisation tools, investment in storage and logistics, processing expansion, structured trading systems, financing solutions, and insurance mechanisms.

Yusuf urged collaboration among the federal government, state governments, commodity exchanges, development finance institutions, and private investors to establish a transparent, fiscally responsible, and supportive Farm Price Stabilisation and Farmer Income Protection Framework.

He stated further that a stable agricultural market is essential not only for protecting farmers but also for enhancing overall food security, reducing inflationary pressures, expanding rural employment opportunities, and bolstering Nigeria’s economic resilience.