Category: Business

The Centre for Promotion of Private Enterprises (CPPE) has called for a ‘farm price stabilization and farmer Income protection framework’, in order to cushion the effect on farmers and investors.

The call was made in a statement tagged ‘CPPE Policy Brief on Sustainable Food Security Imperative of Farm Price Stabilization and Farmer Income Protection Framework for Nigeria’, signed by the Executive Director, CPPE, Dr Muda Yusuf.

Yusuf said the government should consider the plight of farmers and agribusiness investors and consider the policy framework that would encourage and boost farmers’ productivity.

He said the policy framework will go a long way to reduce the impact of food importation on farmers who are struggling to sustain themselves and eke out a living from their farm proceeds which have gone down the lowest ebb as they do not have the wherewithal to compete with food importers.

Yusuf said “the Federal Government’s recent food security strategy has produced troubling trade-offs and unintended consequences. While consumers have applauded the sharp decline in food prices and the notable moderation in food inflation, investors and producers in the agricultural sector are lamenting heavy losses arising from the collapse in prices of key commodities.

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“The welfare gains from cheaper food have been profound and should be acknowledged. However, the cost to farmers and other investors across the agricultural value chain is equally significant and cannot be ignored.

“There is therefore an urgent need to strike a sustainable balance between two critical national objectives: keeping food affordable for consumers while protecting farmers’ incomes and safeguarding investment in agriculture.

“This development presents a major policy dilemma that demands urgent attention. Nigeria cannot afford a policy regime that undermines confidence and discourages investment in agriculture—one of the most strategic sectors of the economy, a major source of livelihoods, and one of the country’s largest employers of labour.

“There is therefore an urgent need for policy recalibration and rebalancing to ensure that farmers remain productively engaged, rural incomes are protected, and investor confidence across the agricultural value chain is sustained—without compromising the equally important objective of keeping food affordable for Nigerian households.

“Recent import surges of food crops—especially staples such as rice, maize and soybeans—have caused serious dislocations in the agricultural investment ecosystem. This has inflicted severe hardship on farmers, weakened incentives to produce, and undermined Nigeria’s broader food security objectives.

“Although consumers have welcomed the decline in food prices, the long-term consequences are adverse: farmer incomes fall, production declines over time, investment confidence weakens, and the country risks returning to cycles of scarcity and higher prices.

“The Centre for the Promotion of Private Enterprise (CPPE) is of the firm view that Nigeria urgently requires a clear, rules-based and market-friendly Farm Price Stabilisation and Farmer Income Protection Framework.

 Such a framework should prevent import-induced price crashes, reduce harvest-time price collapse, discourage distress sales, protect farmer livelihoods, strengthen value chains, and provide stable supply conditions for processors and consumers.

“There is a need for a coherent programme grounded in global best practices and adapted to Nigeria’s fiscal and governance realities.”

Meanwhile, according to him, the framework will focus on principles including: Rules-based rather than discretionary; Targeted rather than universal; Market-friendly rather than command-driven; Digitally enabled to strengthen transparency and accountability.

“Nigeria’s efforts should focus on correcting market failures—particularly in storage, logistics, finance, processing, and market information—rather than crowding out private enterprise through excessive government control”, he said.

He also said the framework includes Minimum Guaranteed Prices (MGP) or price floors for selected strategic commodities, and recommended it begins with priority staples – Maize, Rice (paddy), Sorghum and Soybeans.

Support prices should follow a transparent methodology reflecting: Cost of production Storage and logistics costs Fair farmer margin

“CPPE cautions, however, that MGP without adequate storage capacity and institutional discipline can become fiscally and structurally unsustainable. Therefore, MGP must be combined with reforms in reserves, warehousing, commodity trading systems and transparent governance”, he said.

He also called for reform of the National Strategic Grain Reserves, “Nigeria’s Strategic Grain Reserves require urgent reform to serve as effective stabilisation instruments. CPPE advocates converting the current reserves into a modern, professionally managed and rules-based buffer stock system.

 “Government should: Buy grains during harvest periods when prices collapse; Release grains in lean seasons when prices spike. This will reduce volatility, stabilise supply, and strengthen food security.

“CPPE calls on the Federal Government, State Governments, commodity exchanges, development finance institutions, and private investors to work collaboratively in establishing a Farm Price Stabilisation and Farmer Income Protection Framework that is rules-based, transparent, fiscally sustainable, and supportive of private enterprise.

 “A stable agricultural market will not only protect farmers; it will strengthen food security, reduce inflationary pressures, expand rural employment, and improve Nigeria’s national economic resilience.”