FG to Support Farmers as Food Prices Crash

By Emmanuel Kwada

The federal government has announced immediate interventions to support farmers whose production costs now exceed market rates for some commodities. The move aims to prevent a potential slump in agricultural output that could undo recent gains in inflation control and supply stability.

Finance Minister and Coordinating Minister of the Economy, Wale Edun, revealed the plans during a keynote address at the launch of the Nigerian Economic Summit Group (NESG) 2026 Macroeconomic Outlook Report in Lagos on Thursday.

Highlighting the government’s 2026 priorities, Edun stressed the urgency of bolstering agricultural productivity while addressing the immediate challenges faced by producers.

“There is a point now to help the farmers, because prices have come below, in some cases, their costs, and that is being addressed very, very urgently, in order to ensure that we encourage continued investment in food production,” Edun stated, underscoring the need to balance consumer relief with incentives for farmers, particularly smallholders.

The announcement comes against a backdrop of easing inflation, with food inflation—a major contributor to overall price pressures—dropping dramatically to 10.84 percent year-on-year in December 2025, compared to 39.84 percent the previous year.

This decline has been attributed to improved domestic supply, stabilized foreign exchange rates, and lower import costs following sustained monetary tightening and supply-side reforms.

However, Edun cautioned that while lower prices have eased the burden on households, they risk discouraging farmers from planting if not countered swiftly.

“The government’s focus is to strike a balance between affordability for consumers and incentives for producers,” he added, warning that unchecked disincentives could reverse progress in food availability and price stability.

Beyond agriculture, Edun outlined broader economic strategies for 2026, including enhancing competitiveness, promoting good governance, accelerating infrastructure and energy projects, and investing in human capital development.

He described Nigeria’s economy as transitioning from crisis stabilization to a “consolidation phase” after two years of tough reforms, emphasizing the need for policy discipline to protect hard-won gains.

“Nigeria cannot afford to pause or retreat if stability is to translate into sustained growth, jobs, and poverty reduction,” the minister warned, noting improvements in macroeconomic indicators such as reduced forex volatility, bolstered external reserves, and rising investor confidence.

Edun also highlighted Nigeria’s enhanced global image, including its removal from international risk lists, better credit ratings, and a resurgent capital market.

He pointed out that stock market capitalization is nearing levels that could boost the country’s visibility in global investment indices, thereby attracting more long-term financing amid declining concessional funding worldwide.

Looking forward, the minister described the 2026 budget as one of “consolidation, renewed resilience, and shared prosperity.”

Key measures include refining revenue collection, plugging fiscal leakages, and implementing a pro-poor tax system that exempts essential foods and small businesses while expanding the tax base.

Experts at the NESG event echoed Edun’s sentiments, noting that the success of these initiatives will be pivotal in fostering inclusive, job-rich growth.