More than 500,000 Nigerian farmers are expected to benefit from a new commodity pricing scheme designed to guarantee better returns for their produce and reduce the losses associated with unstable market prices.
The initiative, known as the Guaranteed Minimum Price (GMP) Programme, was launched by the Nigerian Commodity Exchange (NCX) in partnership with the Bank of Agriculture (BOA) and the All Farmers Association of Nigeria (AFAN).
The programme will also target the securing of 400,000 metric tonnes of grains and reach an estimated 11.25 million households across the country.
NCX Managing Director and Chief Executive Officer, Anthony Atuche, announced the launch in a post on his official X handle, saying the programme would give farmers greater income security while improving the way agricultural commodities move from farms to markets.
According to him, the scheme is expected to tackle some of the challenges that continue to erode farmers’ earnings, including post-harvest losses and unfair pricing by middlemen.
Atuche said the programme would rely on structured warehousing and transparent commodity trading to provide farmers with more predictable market opportunities and fairer returns.
“Under His Excellency President Bola Tinubu’s Renewed Hope Agenda, we are targeting direct, measurable impact: 500,000+ farmers protected with fair price guarantees, 400,000 metric tonnes of grains secured, and 11.25 million households reached nationwide,” he said.
He added that NCX was focused on developing a commodity trading system capable of supporting food security, rural prosperity and sustained growth in the agricultural sector.
The development comes as the Federal Government and BOA intensify efforts to expand financing and production among smallholder farmers, particularly in the grain sector.
Recently, BOA introduced the Renewed Hope Smallholder Agricultural Financing Programme, which seeks to raise Nigeria’s annual grain production from about 11 million metric tonnes to 25 million metric tonnes through access to subsidised inputs and affordable credit.
Under the programme, farmers are to receive fertilisers, certified hybrid seeds and other inputs through BOA’s lending facility at nine per cent interest, rather than as grants.
The bank selected 20 farm aggregators from more than 1,240 applicants for the pilot phase, with about 500,000 farmers expected to benefit this farming season. Coverage is expected to increase to two million farmers next year and eventually reach five million nationwide.
The initiatives are part of wider government measures to improve agricultural financing, strengthen market access and boost food production, following the approval of a N250 billion intervention facility for BOA earlier this year to provide smallholder farmers with affordable credit.
