President of the Nigeria Agribusiness Group (NABG), Arc. Kabir Ibrahim has called on the Federal Government to urgently revive the Guaranteed Minimum Price (GMP) policy, warning that current market conditions are discouraging farmers from returning to production in the 2026 farming season. 

He stated that low produce prices are squeezing many smallholder farmers (SHFs) and small-scale producers (SSPs), and amid rising costs of fertilisers, agrochemicals and other inputs.

In a statement, Ibrahim expressed concern that although food inflation has shown signs of easing, the relief has come at a steep cost to producers.

“It is not yet UHURU for Nigerians when a reduction in food inflation comes with severe consequences for smallholder farmers and small-scale producers,” he said.

According to him, farmers who cannot break even are likely to reduce production or withdraw entirely, a situation that could trigger supply shortages and reverse recent gains in food price stability.

Ibrahim warned that prolonged losses among farmers could lead to widespread lethargy in the sector, creating scarcity and driving inflation higher through fundamental supply-and-demand dynamics.

“If lethargy sets in among smallholder farmers due to their inability to recover costs, scarcity will emerge and create even worse inflation,” he noted.

The NABG president described the resuscitation of the GMP as a critical stabilising tool that could restore confidence across Nigeria’s agricultural value chain. 

He proposed targeting staple crops such as maize, rice, sorghum and cassava across the six geopolitical zones.

He also urged government intervention to reduce fertiliser and input prices alongside the price guarantee, noting that the combination could avert a food crisis between mid-2026 and 2027.

Ibrahim stressed the need for transparent consultations with farmers, input suppliers and agribusiness experts to determine fair farmgate prices. 

He recommended the use of an Emergency Operations Plan (EOP) as a benchmark for GMP implementation.

He further suggested structured aggregation of staples from identified suppliers and large-scale producers, alongside the creation of food banks to support vulnerable Nigerians.

“To succeed, this programme requires the buy-in of all relevant stakeholders,” Ibrahim said. “Without collaboration, even well-designed interventions will fail.”

Source: Independent
Image Credit: NABG