By Sodiq Adelakun
Nigeria must urgently adopt a framework to stabilise farm prices and protect farmers’ incomes, the Centre for the Promotion of Private Enterprise (CPPE) has warned, highlighting the risks of declining agricultural investment and rural hardship.
The call comes amid sharp falls in domestic food prices following import surges, which, while benefiting consumers, have inflicted heavy losses on farmers and investors along the agricultural value chain.
In a statement signed by CPPE Chief Executive Officer Dr Muda Yusuf, the centre said, “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.”
The CPPE statement highlighted that Nigeria’s farm prices often collapse immediately after harvest due to oversupply, poor storage, weak logistics, and limited processing capacity.
“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 statement reads.
To address this, the centre recommends the introduction of Minimum Guaranteed Prices for strategic staples such as maize, rice, sorghum, and soybeans.
Dr Yusuf emphasised that such a system should act as a stabilising backstop rather than an open-ended government purchase programme, noting, “Support prices should follow a transparent methodology reflecting cost of production, storage and logistics costs, and a fair farmer margin.”
The CPPE further urged reform of Nigeria’s Strategic Grain Reserves into a professionally managed, rules-based buffer stock system.
The statement reads, “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.”
Also, the centre called for a nationwide Warehouse Receipt System to prevent distress sales, allow farmers to access credit, and improve commodity trading transparency.
The policy brief also recommended investment in processing clusters near production zones to absorb harvest gluts and stabilise prices. Priority areas include tomato paste, rice milling, soybean crushing, and dairy processing.
Dr Yusuf said, “When processing capacity is strong, surplus is absorbed—stabilising prices and creating value-added jobs.”
The CPPE also highlighted the importance of insurance schemes, structured procurement, trade safeguards, and reduced input costs as complementary measures to protect farmers and strengthen Nigeria’s food security.
The centre added that stabilising agricultural markets is essential for economic resilience, rural employment, and sustained investment.
