The Centre for the Promotion of Private Enterprise has urged the Federal Government to review its current food and agriculture policies in a way that protects farmers incomes while ensuring food remains affordable for Nigerian households.
The group said a careful policy reset is needed to sustain agricultural production, protect rural livelihoods and preserve investor confidence in the sector.
In a recent policy brief on sustainable food security, CPPE Director Dr Muda Yusuf noted that although recent interventions have helped moderate food prices and ease inflationary pressure, they have also created unintended difficulties for producers.
According to him, many farmers are now grappling with losses as prices of key commodities fall below sustainable levels.
Yusuf acknowledged that lower food prices have improved consumer welfare, but warned that ignoring the strain on farmers could undermine long term food security.
He stressed that Nigeria must strike a balance between two critical national priorities: keeping food affordable for consumers and ensuring that farmers remain financially viable.
He explained that agriculture plays a central role in employment creation and economic stability, adding that unstable pricing and weak income protection discourage investment across the value chain.
Without confidence that prices will remain fair, farmers may scale back production, investors may withdraw, and the country risks future shortages and price spikes.
The CPPE director expressed concern over rising food imports, particularly staples such as rice, maize and soybeans.
While imports may temporarily ease prices, he said they also expose local producers to price shocks, weaken domestic production incentives and threaten long term self sufficiency.
To address these challenges, Yusuf proposed the creation of a clear and transparent Farm Price Stabilisation and Farmer Income Protection Framework.
He said the framework should help cushion farmers against extreme price swings, reduce distress sales and support steady supply for processors and consumers.
A key element of the proposal is the introduction of Minimum Guaranteed Prices for selected strategic crops. Yusuf suggested starting with maize, paddy rice, sorghum and soybeans.
He clarified that the system should function strictly as a safety mechanism, allowing government backed agencies to step in only when market prices fall below agreed thresholds.
Yusuf further called for more reforms that include better storage and logistics, expanded processing capacity, structured commodity trading, improved access to finance and stronger insurance coverage.
He emphasized that collaboration among federal and state governments, commodity exchanges, development finance institutions and private investors is essential to build a stable and sustainable agricultural market.
According to him, protecting farmer incomes is not just about agriculture but about strengthening food security, reducing inflation, supporting rural employment and improving Nigeria’s overall economic resilience.
