FG tasks states on production-consumption alignment to protect farmers

…says N16.27bn disbursed to 115,000 beneficiaries in 25 states, FCT …as agriculture records 4.39% growth, contributes 26.15% to GDP By Gabriel Ewepu The Federal Government has urged state governments to align agricultural production with consumption and industrial demand to protect farmers from losses, strengthen food supply chains and stabilise food prices.

The Minister of Agriculture and Food Security, Senator Abubakar Kyari, gave the charge on Thursday, November 5, 2026, at the 48th meeting of the National Council on Agriculture and Food Security (NCAFS), held at Hotel Presidential, Enugu. The meeting, themed, “Enhancing Agricultural Value Chains, Agro-Industrialisation and Market Access for Economic Growth,” brought together commissioners of agriculture from the 36 states and the Federal Capital Territory, development partners and other stakeholders to discuss strategies for strengthening the agricultural sector.

Kyari said developments in the past three years had exposed an imbalance in agricultural markets, with rising food prices putting pressure on households, while subsequent price declines left farmers struggling to recover production costs. He recalled that food inflation peaked at 40.87 per cent in June 2024 before declining to 8.89 per cent in January 2026, its first single-digit reading in more than a decade.

However, it rose again to 19.59 per cent by September 2026, as production and input costs continued to affect farmers and consumers. The minister attributed part of the renewed pressure to escalating conflict in the Middle East, which disrupted energy, shipping and fertiliser markets, pushing urea prices above $850 per tonne in April 2026 and increasing input, energy and transportation costs across agricultural value chains.

He said President Bola Tinubu had responded by prioritising investment in agricultural production, financing and market development. According to him, the President has strengthened the operationalisation of the National Agricultural Development Fund (NADF), prioritised the recapitalisation of the Bank of Agriculture (BOA) and supported the introduction of the N200 billion Guaranteed Minimum Price Programme.

Kyari said the interventions were designed to protect farmers’ incentives to produce while ensuring the availability of affordable food for households, rather than relying solely on short-term price relief. He disclosed that the NADF’s Farm Input Support Programme had reached more than 115,000 beneficiaries across 25 states and the FCT, with N16.27 billion disbursed through agribusiness financing.

Similarly, he said the Bank of Agriculture had financed more than 500,000 smallholder farmers and was anchoring the Guaranteed Minimum Price Programme, which seeks to protect eligible farmers against distress sales through structured purchases and commodity aggregation. On mechanisation, Kyari said the second phase of the Renewed Hope National Agricultural Mechanisation Programme, involving 1,500 tractors and more than 8,000 pieces of complementary equipment, was underway.

He said the first phase had delivered 2,000 tractors and more than 9,000 implements, adding that the initiative was intended to expand farmers’ access to mechanised services, reduce production costs and improve productivity. Using maize production as an example, the minister explained that fluctuations in commodity prices affected not only farmers but also feed mills, poultry producers, food processors and consumers.

He stressed that processors needed raw materials in the right quantities and quality, delivered at commercially viable costs, rather than relying on production estimates. Kyari said this made it necessary to build agricultural value chains that effectively linked production with processing, investment and dependable markets. He further disclosed that the Special Agro-Industrial Processing Zones initiative was expanding domestic value addition, while the Rural Access and Agricultural Marketing Project was improving connectivity between farming communities and markets.

He added that the World Bank-supported AGROW Project, which was being prepared for implementation, would strengthen commercial partnerships between smallholder farmers and agribusinesses. The minister also said the African Continental Free Trade Area offered opportunities for Nigerian agricultural products but cautioned that access to regional and international markets depended on compliance with accepted standards for quality, safety, traceability and consistency of supply.

Ahead of the 2027 farming season, Kyari challenged commissioners of agriculture to improve production forecasts, align agricultural supply with industrial demand and strengthen coordination between producing and consuming areas. He said such alignment would protect farmers from losses, ensure factories received raw materials in the required quantities and quality, stabilise food prices and minimise waste across agricultural value chains.

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