…Moves to stabilise food prices, shield farmers from market volatility

…Launches campaign to end post-harvest losses

The Bank of Agriculture (BOA) has unveiled initiatives aimed at tackling what it described as Nigeria’s volatile agricultural market and protecting smallholder farmers from persistent price instability.

While describing the reforms as part of the agricultural agenda of President Bola Tinubu being implemented through the bank, the managing director of the financial institution, Ayo Sotinrin, stated that the interventions will improve farmer income, expand financial inclusion and boost food security.While speaking during an interview with with Nancy Nnaji on MoneylinewithNancy on AIT, Sotinrin emphasised that the initiatives reflect the Federal Government’s commitment to supporting farmers whose labour ensures Nigerians do not go hungry.

The BOA MD noted that the reforms align with the president’s drive to strengthen food systems, scale production and ensure farmers enjoy the rewards of their efforts.

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

Sotinrin added that the food stabilisation programme would be driven as a massive national campaign, with the 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.

According to him, the bank will purchase excess produce directly from farmers to prevent post-harvest losses and store the commodities in the nation’s 33 silos for future price stabilisation.

The BOA boss also announced a shift from direct microcredit 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, adding that 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.

“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,” he stated.