The Centre for the Promotion of Private Enterprise (CPPE) has called on the Federal Government to urgently establish a National Farm Price Stabilisation and Farmer Income Protection Framework to prevent the collapse of Nigeria’s agriculture sector and safeguard long-term food security.

In a policy brief signed by its Chief Executive Officer, Dr Muda Yusuf, the economic think tank warned that while recent import surges have lowered food prices to the delight of consumers, they have simultaneously inflicted severe financial losses on farmers and agricultural investors, creating what it described as “troubling trade-offs and unintended consequences”.

The document, released yesterday, cautioned that Nigeria cannot afford a policy regime that undermines confidence in agriculture, one of the country’s most strategic sectors and largest employers of labour.

“The welfare gains from cheaper food have been profound and should be acknowledged. However, the cost to farmers and other investors across the agricultural value chain is equally high and cannot be ignored,” Yusuf stated in the brief.

The CPPE boss emphasised the urgent need to strike a sustainable balance between keeping food affordable for consumers and protecting farmers’ incomes, while safeguarding agricultural investment.

According to the policy document, recent import surges of staples such as rice, maize and soybeans have caused serious dislocations in the agricultural investment ecosystem, inflicting severe hardship on farmers and weakening production incentives.

“Although consumers have welcomed the decline in food 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,” the document warned.

The CPPE identified several structural factors driving recurring farm price collapses in Nigeria, beyond the immediate impact of food imports.

Harvest glut remains a major challenge, with many farmers harvesting the same crops within the same period, causing sudden oversupply. This is compounded by the limited availability of storage facilities, drying centres and cold-chain systems, which forces farmers to sell immediately regardless of market conditions.
Weak rural logistics, characterised by poor roads, insecurity, high transport costs, and limited aggregation hubs, make it difficult to move produce efficiently from production zones to high-demand markets, the organisation noted.