The Centre for Promotion of Private Enterprise (CPPE) has issued a strong call for the Federal Government to establish a 'farm price stabilization and farmer income protection framework'. This initiative, according to the CPPE, is crucial to mitigating the adverse effects of fluctuating prices on farmers and agribusiness investors across Nigeria.

Dr. Muda Yusuf, Executive Director of the CPPE, emphasized the urgency of addressing the plight of farmers. In a statement accompanying the CPPE's policy brief, he highlighted the need for a policy framework that would bolster farmers’ productivity and shield them from the harsh realities of competing with food importers. The current situation, where farmers struggle to sustain themselves, needs urgent intervention.

“The Federal Government’s recent food security strategy has produced troubling trade-offs and unintended consequences,” Dr. Yusuf stated. While acknowledging the positive impact of lower food prices on consumers and the moderation of food inflation, he cautioned that the benefits come at a significant cost to agricultural producers and investors. Many are facing substantial losses due to the collapse of commodity prices.

He further elaborated, “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 significant and cannot be ignored.” This policy dilemma, according to the CPPE, requires immediate and careful consideration.

The heart of the matter lies in finding a sustainable equilibrium between two critical national objectives. Firstly, ensuring that food remains affordable for consumers across Nigeria. Secondly, protecting the livelihoods of farmers and safeguarding investments within the agricultural sector. The CPPE believes this balance is achievable through well-designed policies and targeted interventions.

The CPPE's call comes at a time when many farmers are reportedly struggling with low commodity prices, making it difficult to recoup their investments and sustain their farming operations. The inability to compete with cheaper imported food products further exacerbates their challenges. A structured framework, as proposed by the CPPE, could provide a much-needed safety net for these vital players in the Nigerian economy.

The policy brief did not specify concrete proposals for farm price stabilisation. However, it did indicate that options such as minimum guaranteed prices for key crops, strategic buffer stock management, and enhanced access to credit and insurance could be explored. The government is yet to officially respond to the CPPE's recommendations. Stakeholders in the agricultural sector will be watching closely to see if action will be taken.