Policy Think Tank Calls for National Framework to Stabilize Farm Prices and Incomes
The Centre for the Promotion of Private Enterprise (CPPE) has issued a formal appeal to the Federal Government for the establishment of a rules-based national farm price stabilisation framework. This initiative aims to safeguard Nigerian farmers from volatile price shocks and recurrent income losses, a move the organization deems critical for the sector’s sustainability.
In a statement delivered by its Chief Executive Officer, Dr. Muda Yusuf, the CPPE highlighted that the current absence of a structured mechanism leaves farmers dangerously exposed. This vulnerability manifests in import-induced price crashes, seasonal gluts, and forced distress sales, which collectively erode livelihoods, deter investment, and destabilize the broader agricultural value chain. The organization emphasized that a well-designed framework would act as a crucial buffer, preventing sharp price collapses during harvests, thereby protecting farmer incomes and ensuring more stable supply conditions for processors and consumers nationwide.
The CPPE stressed that Nigeria urgently requires a predictable and market-friendly system. Such a system must protect farmers without distorting market incentives or crowding out vital private sector participation. The think tank was clear that price stabilisation should be implemented as a permanent structural reform, not merely a temporary crisis response. “The MGP system should not become an open-ended government purchase programme. Rather, it should operate strictly as a stabilising backstop,” the statement advised. Furthermore, any intervention must reflect global best practices while remaining acutely realistic about Nigeria’s fiscal constraints and governance capacity.
The immediate trigger for the current crisis, as identified by the CPPE, is a recent surge in grain imports—a policy adopted as an emergency response to extreme food inflation. However, the organization warned that imports alone do not explain the depth of price instability. Underlying structural and seasonal weaknesses perpetuate a cycle of boom and bust, discouraging long-term investment and undermining productivity growth. For a government aiming to demonstrate that it will prudently manage economic reforms, addressing this agricultural instability is paramount.
This call for action comes against a sobering backdrop. Reports indicate Nigeria may face a severe food crisis by 2026, with rising costs, insecurity, and post-harvest losses pushing farmers toward abandoning their fields. In this context, establishing a reliable stabilisation framework is as indispensable for national food security as cash remains indispensable for daily rural commerce. The need for a strategic, long-term solution is clear, requiring a focus as compulsory as foundational subjects like English and mathematics are to education.
