CPPE farm price stabilisation framework proposed to protect Nigerian farmers from price crashes and restore investor confidence in agriculture

The Centre for the Promotion of Private Enterprise, CPPE, has called for the urgent adoption of a farm price stabilisation and farmer income protection framework to shield Nigerian farmers and agribusiness investors from mounting losses triggered by falling food prices.

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The appeal was contained in a policy brief signed by the Executive Director of CPPE, Dr Muda Yusuf, and released in Lagos on Monday, amid growing concern over the unintended impact of recent food import policies on domestic agricultural production.

Dr Yusuf said that while consumers have benefited from cheaper food and moderating inflation, farmers and investors across the agricultural value chain are facing severe income shocks due to collapsing commodity prices.

He described the situation as a troubling policy trade-off that threatens long-term food security.

According to the CPPE farm price stabilisation framework proposal, unchecked food imports have weakened farmers’ ability to compete, eroded profitability, and discouraged further investment in agriculture, one of Nigeria’s largest employers and most strategic sectors.

Dr Yusuf warned that sustained price crashes at harvest periods have already forced many farmers into distress sales, reduced incentives to produce, and destabilised agribusiness planning.

He noted that although lower prices have delivered immediate welfare gains for households, the long-term consequences could include declining output, renewed scarcity and higher prices.

The CPPE farm price stabilisation framework advocates a rules-based, market-friendly approach designed to protect farmer incomes without undermining food affordability.

The proposed system would prioritise transparency, digital tracking and targeted intervention rather than broad government controls.

Central to the proposal is the introduction of Minimum Guaranteed Prices for selected staple crops, including maize, rice, sorghum and soybeans.

These price floors, CPPE said, should be calculated transparently based on production costs, storage and logistics expenses, and fair profit margins for farmers.

However, the think tank cautioned that price guarantees without adequate storage capacity and institutional discipline could become fiscally unsustainable.

Dr Yusuf stressed that any minimum price regime must be supported by reforms in warehousing, commodity trading systems and governance structures.

The policy brief also called for a comprehensive overhaul of Nigeria’s Strategic Grain Reserves, urging their conversion into a professionally managed buffer stock system.

Under the proposed model, government purchases would occur during harvest-time price collapses, while releases would be timed to lean seasons to stabilise supply and prices.

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Dr Yusuf said Nigeria must focus on correcting market failures in storage, logistics, finance and market information, rather than crowding out private enterprise, warning that failure to act decisively could undermine investor confidence and weaken national food security.