By Agrobroadcast Team
Nigeria’s push to tame food inflation must be carefully balanced to avoid undermining farmers’ livelihoods, the Centre for the Promotion of Private Enterprise (CPPE) has warned, calling for urgent policy adjustments to protect agricultural producers while keeping food affordable for consumers.
In a policy brief on sustainable food security, CPPE Director, Dr Muda Yusuf, said recent government interventions had helped moderate food prices and ease pressure on households, but noted that the same developments were inflicting losses on farmers across the agricultural value chain.
According to him, declining prices of key commodities have eroded farmers’ incomes and threatened investment in the sector, even as consumers enjoy temporary relief from high food costs. He stressed that while lower prices are beneficial to households, ignoring the plight of producers could weaken the foundation of Nigeria’s food system.
Yusuf argued that the country faces a critical policy challenge: how to sustain affordable food prices without discouraging farming and agricultural investment. He said achieving this balance is essential for employment, rural income stability and long-term food security.
He warned that rising food imports particularly staples such as rice, maize and soybeans have distorted local markets.
Although imports may suppress prices in the short term, Yusuf said the long-term risks include reduced domestic production, weakened incentives for farmers and a possible return to food shortages and price spikes.
To address these concerns, the CPPE boss proposed the immediate creation of a transparent, rules-based and market-oriented Farm Price Stabilisation and Farmer Income Protection Framework.
He said such a framework would help curb harmful price volatility, prevent distress sales by farmers and support sustainable livelihoods, while ensuring steady food supplies for processors and consumers.
A major component of the proposed framework, Yusuf explained, is the introduction of Minimum Guaranteed Prices (MGPs) for selected strategic crops, describing the approach as an internationally recognised tool for shielding farmers from severe price collapses.
He suggested that Nigeria begin with four priority commodities maize, paddy rice, sorghum and soybeans adding that the scheme should function strictly as a safety net rather than a permanent government procurement programme.
Under the model, government intervention would only occur when market prices fall below agreed support levels, with licensed agencies and aggregators purchasing produce at the guaranteed price.
Yusuf noted that unstable and collapsing farm-gate prices discourage production, deepen rural poverty and threaten the country’s agricultural transformation agenda.
He therefore called for a broader strategy that combines price stabilisation with investments in storage, logistics, processing capacity, structured trading platforms, financing and agricultural insurance.
He also urged strong collaboration among the federal and state governments, commodity exchanges, development finance institutions and private investors to deliver a fiscally responsible and credible stabilisation framework.
According to Yusuf, a more stable agricultural market would not only protect farmers but also strengthen food security, moderate inflation, create rural jobs and improve Nigeria’s overall economic resilience.