The dominance of middlemen and weak agricultural market structures have been identified as major factors driving up food prices in Nigeria.
Mr John Olateru, National First Deputy President of the All Farmers Association of Nigeria (AFAN), disclosed this in an interview with reporters in Ibadan on Tuesday.
He said farmers were largely unable to control the pricing and distribution of farm produce due to inadequate storage and processing facilities, as well as limited access to structured markets.
According to him, middlemen often take advantage of farmers’ financial pressure immediately after harvest to buy produce at very low prices.
Olateru, who is also the Chief Executive Officer of Terudee Farms, said the middlemen store the produce and later release it into the market at much higher prices.
“The farmer is crying, the government is crying, but the middlemen never trade at a loss.
“They exploit the weak system and dictate prices, both at the farm gate and in the market,” he said.
He explained that many farmers are forced to sell their produce cheaply because of the lack of storage facilities and the urgent need for cash to repay loans or meet basic household needs.
Olateru noted that the situation also influences banks’ lending behavior, with many financial institutions preferring to finance middlemen rather than farmers, whom they regard as high-risk borrowers.
“Most banks prefer giving loans to middlemen because they are merchants, while farmers are left struggling without control over their products,” he said.
He added that the problem is compounded by poor infrastructure, inadequate processing capacity and climate-related risks, which make farming increasingly unpredictable.
Olateru recalled cases where farmers suffered major crop losses due to unexpected changes in rainfall patterns, noting that insurance claims in such situations were often rejected.
“When disasters happen, farmers are left alone to face the consequences, even when the fault is not theirs,” he said.
The AFAN leader also criticized government agricultural interventions, arguing that a significant portion of funds meant for farmers did not reach the intended beneficiaries.
“On record, it will be said that grants were given to farmers, but in reality, those funds end up in the wrong hands,” he said.
He called for policies that would empower farmers with modern tools, processing facilities close to production centres and flexible financial support.
According to him, enabling farmers to process produce beyond the primary stage would reduce their dependence on middlemen and strengthen national food security.
“All over the world, agriculture is subsidize.
“Any country that cannot feed its people is sitting on a time bomb,” Olateru said.
