The Federal Government has signaled plans to step in to protect farmers as falling food prices begin to dip below production costs in parts of the country, a development officials say could threaten long term food supply if left unchecked.
Speaking in Lagos on Thursday at the unveiling of the Nigerian Economic Summit Group 2026 Macroeconomic Outlook Report, the Minister of Finance and Coordinating Minister of the Economy, Wale Edun, said urgent measures are being put in place to prevent farmers from abandoning production due to mounting losses.
According to the minister, recent improvements in food supply and macroeconomic conditions have helped push prices downward, but the situation has created a new challenge for producers whose expenses now exceed market prices.
He warned that without timely support, investment in agriculture could decline, reversing recent gains in food availability.
“There is now a clear need to support farmers because in some cases prices have fallen below their costs,” Edun said, adding that government action was already underway to keep producers in business and sustain food output.
Data from December 2025 shows food inflation eased significantly to 10.84 percent year on year, a sharp drop from 39.84 percent recorded in the same period of the previous year.
The decline has been attributed to better harvests, improved access to foreign exchange and lower import related costs.
While consumers have benefited from cheaper food, Edun cautioned that prolonged price weakness could discourage production, especially among small scale farmers who form the backbone of the sector.
He said government policy must carefully balance affordability for households with fair returns for producers.
Beyond agriculture, the finance minister said Nigeria is transitioning from a period of economic crisis management to a phase focused on strengthening and preserving recent reforms. He noted that after two years of difficult policy adjustments, the economy is showing signs of greater stability.
Edun pointed to reduced volatility in the foreign exchange market, stronger external reserves and growing investor confidence as evidence of progress. However, he stressed that these gains could only be sustained through discipline and consistent policies, warning against any reversal of reforms.
He added that Nigeria’s improved outlook has begun to reflect in its international perception, including removal from certain risk classifications and better assessments by credit rating agencies. The capital market, he said, has also recorded stronger performance, with market capitalisation approaching levels that could attract greater global investor attention.
According to the minister, these developments are particularly important at a time when access to concessional loans and multilateral funding is shrinking worldwide, making private investment and domestic savings more critical to economic growth.
Looking ahead, Edun said the 2026 budget will prioritise consolidation and resilience, with an emphasis on translating macroeconomic stability into tangible benefits for citizens. Planned focus areas include food security, electricity supply, housing finance, transport infrastructure and expanded social protection.
He also reaffirmed the government’s commitment to improving revenue generation, closing leakages and implementing a tax system that protects essential food items and small businesses while expanding the overall tax base.
Edun concluded that the choices made during this consolidation phase will shape Nigeria’s ability to achieve inclusive growth, create jobs and reduce poverty in the years ahead.
