The persistent cries over widespread insecurity and rising input prices by Nigerian smallholder farmers (SHFs) and small-scale producers (SSPs) call for decisive and coordinated action by government and the organised private sector. Without urgent intervention, Nigeria risks severe stress in its food system in 2026 and beyond. It is true that Nigerian consumers are currently experiencing relative relief in food prices.
However, this apparent stability masks the deep distress of producers, who are increasingly constrained by insecurity that limits access to farmlands and by the ever-rising cost of critical inputs such as fertiliser, seeds and agrochemicals.
In agribusiness, fair pricing is fundamental. Rapid and predictable return on investment is a sine qua non for sustainability. Smallholder farmers must be able to sell surplus produce at remunerative prices in order to finance the next production cycle. Where this becomes impossible, it portends systemic risk to the entire food system.
A pragmatic way to safeguard the system is to properly calibrate the economics of production and secure agricultural investment in all its ramifications. This requires that government institutions function effectively and that key policy instruments be reappraised along the following lines:
Government as buyer of last resort
Government should revive and strengthen the Guaranteed Minimum Price (GMP) mechanism to serve as buyer of last resort. Excess produce should be purchased directly from farmers and released to the market during periods of inflationary pressure. Extreme care must be taken to prevent the emergence of middlemen and rent seekers that could undermine the credibility of this intervention.
Consumer protection through scientific pricing
Consumer protection should be ensured by analysing the economics of production of regional staples and making scientific assessments to guide retail price calibration. This is not a call for price control, but for market sanity, stability and transparency.
Reduction of transportation costs
The cost of transportation must be deliberately lowered by deploying dedicated food distribution vehicles, abolishing unnecessary roadblocks, and eliminating multiple taxation along major food corridors to enable seamless distribution.
Incentives for value addition
To maximise returns on agricultural investment, government must create an enabling environment for sustainable value addition through tax holidays, energy rebates, processing equipment support, long-term credit facilities and low-interest loans to properly vetted enterprises.
Promotion of inclusive agribusiness models
Businesses should be encouraged to build strong outgrower schemes, guarantee offtake, and grant incentives such as equity participation in value-add programmes to create a loyal and productive supply base.
Consolidation of commercial and investment partnerships
Commercial and investment partnerships among credible agricultural stakeholders should be strengthened, with guarantees provided to collaborative ventures to de-risk private investment.
Deployment of alternative energy for agriculture
Regulatory institutions in the energy sector must be streamlined to prioritise the national interest by accelerating the deployment of alternative energy solutions to agricultural enterprises and rural agro-industrial clusters.
Community-based security architecture
National security efforts must be reinvigorated to actively involve traditional institutions and high-net-worth individuals in communities, who are themselves major beneficiaries of a genuinely secure environment.
Macroeconomic stability and Naira strengthening
The Central Bank of Nigeria’s efforts to strengthen the naira should be given maximum support to ensure that citizens derive real income value from hard work in an increasingly challenging economic environment.
Zero tolerance for corruption
The fight against corruption must be escalated to a level of national self-preservation, with zero tolerance across all sectors. Nigerians must be encouraged to actively deprecate corruption in all its forms.
Revalidation of agricultural institutions and associations
Genuine agricultural stakeholders with verifiable investments must be deliberately carried along. A government-backed Partner Institution Viability Assessment (PIVA) should be conducted to reform or abrogate dysfunctional and fraudulent associations.
These eleven policy pillars can be expanded into a coherent national framework for implementation, given the necessary political will and institutional coordination.
This is the essence of the United States experience, which explains its enduring food security and low levels of food-related insecurity.
Arc. Kabir Ibrahim, FNIA is the President, Nigeria Agribusiness Group (NABG)
