The Board of Trustees (BOT) Chairman of the North West Agricultural Commodities Association (NOWACAS), Shuaibu Idris Mikati, on Tuesday warned that Nigerian farmers are facing an unprecedented crisis as soaring input costs collide with collapsing farm-gate prices, pushing many to the brink of ruin.
Speaking at a press briefing in Kaduna, Mikati argued that while food prices appear high in naira terms abinitio, a proper economic analysis showed that the situation was more complex when viewed against foreign exchange realities.
“Before the Buhari administration, a bag of rice sold for between N15,000 and N17,000. During his tenure, despite increased local production, the price rose to as high as N50,000.
“However, when you index these prices in dollar terms, N50,000 today is actually cheaper than N17,000 was then.
“As statisticians, we must ensure we are comparing apples with apples,” he said.
Mikati acknowledged that the administration of President Bola Ahmed Tinubu has made efforts to stabilise the economy but stressed that recent policies, combined with longstanding structural challenges, have worsened the plight of farmers.
“Honestly, as I speak to you, I feel like breaking down in tears. Farmers who bought a bag of NPK or urea fertilizer at close to N100,000 are now forced to sell a bag of maize for just N30,000 or even less.
The pain is enormous, weighty, and unbearable,” he decried.
He explained that historically, farmers could sell one bag of maize or rice to purchase one bag of fertilizer.
Today, however, a farmer must sell between two and a half to three bags of produce to afford a single bag of fertilizer.
“This raises a fundamental question of where are the bags of maize that farmers are supposed to sell to buy fertilizer for the next planting season?
“Without inputs, food production will inevitably decline, and that will be a big threat to our food security,” he added.
The NOWACAS chairman criticised government policies that opened import windows for agro-commodities at highly competitive prices without putting in place a guaranteed minimum price mechanism for local produce.
He said, “When you tilt one side of the equation and refuse to adjust the other, the equation will no longer balance.
“Imported commodities are depressing local prices, yet nothing is being done to protect Nigerian farmers from losses.”
Mikati called on the National Assembly to urgently fast-track the National Trust Receipt (Warehouse Receipt) Bill, which has reportedly remained before the legislature for nearly a decade.
He said the bill would enable farmers to use warehouse receipts as collateral to access credit, stimulate the establishment of insured warehouses, and unlock broader economic activity in the agricultural value chain.
He also criticised the suspension of agricultural finance interventions due to past abuses, arguing that blanket bans have harmed genuine farmers.
“Can any farmer borrow from a commercial bank at 36 per
cent interest and survive? The answer is a capital no.
According to him, the Central Bank of Nigeria should channel agricultural interventions through the Nigerian Agricultural and Cooperative Development Bank, headquartered in Kaduna, which has nationwide reach and sector-specific expertise.
Mikati reiterated that NOWACAS and its member associations remain willing to work with government at all levels to design practical policies that will rejuvenate the agricultural sector.
“We appeal to the media to amplify this message so government can listen because food security is not optional. Nigeria must be able to feed itself, and farmers are ready to engage constructively to make this a reality,” he added.
