The Centre for the Promotion of Private Enterprise (CPPE) has issued a critical policy alert, calling on the Federal Government to urgently implement a rules-based Farm Price Stabilisation and Farmer Income Protection Framework. This call comes in response to a growing crisis where recent sharp declines in food prices, while beneficial to consumers, are inflicting devastating financial losses on producers and investors across the agricultural value chain.
https://www.digital.zenithbank.com/ZEQ/ZEQ-jan-2026/index.html#p=1In a comprehensive review of the current food security strategy, the CPPE noted that Nigeria is facing a major policy dilemma. While the moderation of food inflation has provided profound welfare gains for Nigerian households, the unintended consequences have been severe for the country’s largest employer of labor: the agricultural sector.
The CPPE highlights that recent surges in the importation of staples such as rice, maize, and soybeans have caused “serious dislocations” in the local agricultural ecosystem. These imports have triggered a collapse in the prices of key commodities, weakening incentives for local farmers to continue production and undermining long-term food security.
“Nigeria cannot afford a policy regime that undermines confidence and discourages investment in one of its most strategic sectors,” the statement noted. “Although consumers have welcomed the decline in 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”.
To rectify this imbalance, the CPPE proposes a market-friendly framework designed to ensure that farmers remain productively engaged while keeping food affordable. The proposed Farm Price Stabilisation and Farmer Income Protection Framework seeks to achieve four critical objectives:
- Prevent Import-Induced Crashes: Shielding local producers from the volatility caused by sudden surges in imported food crops.
- Reduce Harvest-Time Price Collapse: Implementing mechanisms to stabilize prices during peak harvest periods when oversupply often leads to “distress sales” by farmers.
- Protect Rural Livelihoods: Ensuring that rural incomes are safeguarded to prevent a mass exodus from agricultural ventures.
- Strengthen Value Chains: Providing stable supply conditions that benefit both industrial processors and end consumers.
The CPPE emphasizes that national economic stability depends on striking a sustainable balance. The current trajectory, if left uncorrected, threatens to return Nigeria to a state of food dependency. Recalibrating the current strategy is essential to ensure that investor confidence across the value chain is sustained without compromising the immediate needs of Nigerian households.
