Govt urged on farmer-focused reform

Chief Executive Officer, Niji Foods, Mr. Kolawole Adeniji, has urged the Federal Government to urgently roll out concrete, farmer-focused reforms to boost food production, warning that without swift and decisive action, recent gains in food price stability could threaten the long-term sustainability of Nigeria’s agricultural sector.

Adeniji made the call while reacting to the keynote delivered by the Minister of Finance and Coordinating Minister of the Economy, Mr. Wale Edun, at the launch of the Nigerian Economic Summit Group (NESG) 2026 Macroeconomic Outlook Report in Lagos.

At the event, the minister acknowledged that easing food prices, while offering relief to consumers, have in some cases fallen below farmers’ production costs, raising concerns about continued investment in food production.

 “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 said.

Responding, Adeniji said the minister’s remarks validated long-standing warnings from stakeholders in the sector, noting that farmers are under increasing pressure from rising input costs, limited access to affordable finance and weak supporting infrastructure. He stressed that agriculture requires deliberate, sector-specific solutions rather than generic economic policies.

 “Agriculture is not like any other business you do and you cannot use a standard office system to solve its unique challenges. The government must restructure agricultural banks and develop proper loan systems for agribusiness development. We need a system where banks actually understand the farm, spending time on the ground to see what farmers suffer before they attempt to offer support. If not, we cannot move forward,” Adeniji said.

He identified access to affordable credit as a major constraint to food production, calling for a drastic reduction in interest rates to single-digit levels.

According to him, lending rates of up to 30 per cent make it impossible for smallholder and family farmers to invest in machinery, irrigation systems and modern technology required to raise productivity.

He also called for a comprehensive “rejigging” of agricultural policies to make them more farmer-friendly, urging stronger government support for biotechnology, certified seeds and irrigation infrastructure.

Adeniji described improved seed quality as a critical driver of higher yields and climate resilience.

Beyond financing and inputs, Adeniji advocated the establishment of dedicated seaports for agricultural exports to improve efficiency across the value chain. He said such ports would enable importers and agribusinesses to fully benefit from duty-free concessions on agricultural machinery, while shielding them from congestion, delays and bureaucratic bottlenecks associated with conventional seaports.

 “We need seaports dedicated to agriculture. If importers are granted duty-free status on agricultural machinery, there must be an efficient system to support it. Today, using regular seaports exposes farmers and agribusinesses to congestion and unnecessary bureaucracy that increase costs and discourage investment. Dedicated agricultural ports will save time, reduce losses and make our exports more competitive,” he said.

The Federal Government, meanwhile, said it is moving to support farmers following evidence that food prices have in some cases dropped below production costs, raising concerns about the sustainability of food production and future supply.

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Edun said agriculture remains central to the 2026 policy agenda, which prioritises boosting competitiveness, ensuring good governance, increasing agricultural productivity and food security, while accelerating infrastructure, energy and human capital development.

The intervention comes as food inflation and headline inflation continue to ease after months of tight monetary policy and supply-side reforms. As of December 2025, food inflation declined sharply to 10.84 per cent year-on-year from 39.84 per cent in December 2024, driven by improved food supply, easing foreign exchange pressures and reduced import costs.

While the moderation has brought relief to consumers, the minister warned that prices falling below farmers’ costs could discourage production if left unaddressed, potentially reversing recent gains in food availability and price stability. He said the government’s focus is to strike a balance between affordability for consumers and incentives for producers, especially smallholder farmers.

Looking ahead, Edun said the 2026 budget, described as a budget of consolidation, renewed resilience and shared prosperity, would focus on translating macroeconomic stability into tangible improvements in living standards. Key priorities include food security, improved electricity supply, expanded mortgage access, road infrastructure and social protection for vulnerable Nigerians.

He added that the government would continue reforms to improve revenue collection, block leakages and implement a pro-poor tax framework that exempts essential food items and small businesses while broadening the tax base. For Adeniji, however, the true test lies in how quickly policies translate into relief at the farm level. “If the government gets agriculture right,” he said, “we will get our economy right.”