The Bank of Agriculture (BOA) has unveiled a new food price stabilisation plan under which it will purchase excess produce directly from farmers to curb price volatility, reduce post-harvest losses and protect smallholder farmers from market shocks.

Managing Director of BOA, Ayodeji Sotinrin, disclosed the initiative during an interview, describing the intervention as part of the agricultural reform agenda of President Bola Tinubu aimed at strengthening food security and improving farmer welfare.

Sotinrin said the programme would operate through a Guaranteed Minimum Price (GMP) mechanism under which government would set a price floor for staple crops including maize, rice, soybeans and cassava.

He explained that the bank would buy surplus produce from farmers whenever market prices fall below the approved threshold and store the commodities in the nation’s 33 silos for future price stabilisation.

According to him, the initiative is intended to shield farmers from exploitative pricing while ensuring stable food supply across the country.

He explained that a key pillar of the plan is the introduction of a Guaranteed Minimum Price (GMP) mechanism to address the long-standing gap between production costs and farm-gate prices.

He added that the food stabilisation programme would be driven as a massive national campaign, with the entire country sensitised through all media platforms.

“Under the arrangement, the government will set a price floor for staple crops such as maize, rice, soybeans and cassava,” he said.

The BOA boss also announced a shift from direct micro-credit to a digital ecosystem driven by farmer aggregation companies.

He explained that the bank now leverages digital platforms and identity verification tools, including BVN and NIN, to open bank accounts for farmers within minutes, ensuring financial support reaches genuine producers rather than middlemen.

Sotinrin noted that mechanisation remains a major focus, citing Nigeria’s low tractor density of 0.27 per 100 square kilometres.

To address this, the bank has deployed 2,000 high-durability tractors sourced from Belarus to service providers who must demonstrate the capacity to mechanise at least 600 hectares each.

The initiative is expected to support more than 1.2 million farmers during the current wet season.

He further revealed the launch of a ginger revival programme following a devastating fungal infection that hit the crop in 2023.

The programme will replace traditional replanting methods with tissue culture technology, with the goal of expanding the ginger industry from a $300 million sector to a $3 billion export powerhouse by 2028.

In addition, the Federal Government has issued a presidential directive for the establishment of a permanent National Farmer Data Registry to enable government, development partners and financial institutions to track farmers and provide targeted services such as health and crop insurance.

Beyond the BOA reforms, the Tinubu administration has prioritised massive financing and technology-driven initiatives aimed at making farming more productive and profitable.

The Federal Government approved a historic N1.5 trillion recapitalisation of the bank to transform it into a development finance institution capable of providing affordable credit, capacity development and innovation support for farmers, particularly youth and women-led agribusinesses.

The policy direction emphasises mechanisation, digital agriculture and stronger research-to-market linkages to boost productivity nationwide.