The Centre for the Promotion of Private Enterprise(CPPE) has urged the Federal Government to introduce a rules-based national farm price stabilisation framework to protect Nigerian farmers from recurring price shocks and income losses.
The call was made in a statement signed on Sunday by CPPE’s Chief Executive Officer, Dr. Muda Yusuf.
According to the policy think tank, the absence of a structured price stabilisation mechanism has exposed farmers to import-induced price crashes, seasonal gluts, and distress sales, with adverse effects on livelihoods, investment, and the broader agricultural value chain.
CPPE noted that a well-designed stabilisation framework would help prevent sharp price collapses during harvest periods, protect farmer incomes, strengthen agro-processing value chains, and ensure more stable supply conditions for processors and consumers across the country.
CPPE said Nigeria urgently needs a predictable and market-friendly system that protects farmers without distorting incentives or crowding out private sector participation. The organisation stressed that price stabilisation must be designed as a structural reform rather than a temporary crisis response.
“The Centre for the Promotion of Private Enterprise (CPPE) is of the firm view that Nigeria urgently requires a clear, rules-based and market-friendly Farm Price Stabilisation and Farmer Income Protection Framework.”
“Such a framework should prevent import-induced price crashes, reduce harvest-time price collapse, discourage distress sales, protect farmer livelihoods, strengthen value chains, and provide stable supply conditions for processors and consumers.”
“Beyond the import factor, there are structural and seasonal conditions that recur annually and worsen price instability.”
“The MGP system should not become an open-ended government purchase programme. Rather, it should operate strictly as a stabilising backstop.”
CPPE added that any proposed intervention must reflect global best practices while remaining realistic about Nigeria’s fiscal constraints and governance capacity.
The policy think tank identified the recent surge in grain imports as the immediate trigger for the collapse in farm product prices across the country. It explained that the import drive was adopted as an emergency response to extreme food inflation, but warned that imports alone do not explain the depth of price instability being experienced by farmers.
CPPE pointed to weak storage infrastructure as a major factor forcing farmers to sell produce immediately after harvest at depressed prices.
Poor logistics and limited access to reliable market information were identified as recurring constraints that worsen seasonal price volatility.
The absence of effective price risk management tools continues to leave farmers exposed to sharp market swings year after year.
According to CPPE, these structural weaknesses make Nigerian agriculture vulnerable to cycles of boom and bust, discouraging long-term investment and undermining productivity growth.
Nigeria is projected to face a worsening food security crisis in 2026, with up to 34.7 million people at risk of acute food insecurity.
Nigeria has struggled with food inflation driven by insecurity, currency pressures, and rising energy and input costs.
The United Nations Food and Agriculture Organization (FAO) has projected that about 34.7 million Nigerians could face severe food insecurity during the June–August 2026 lean season, based on its October 2025 Cadre Harmonisé analysis.
