FG to intervene as food prices fall below farmers’ production costs — Edun

The Federal Government has announced plans to urgently support farmers as food prices fall below production costs in some cases, raising concerns over the sustainability of agricultural production and future food supply.

The Minister of Finance and Coordinating Minister of the Economy, Wale Edun, disclosed this on Thursday while delivering a keynote address at the launch of the Nigerian Economic Summit Group (NESG) 2026 Macroeconomic Outlook Report in Lagos.

Edun said the development, while easing pressure on consumers, poses a risk to continued investment in agriculture if farmers are unable to recover their costs. He noted that government intervention had become necessary to prevent a decline in food production.

According to him, the Federal Government’s 2026 priorities include boosting competitiveness, strengthening governance, increasing agricultural productivity and food security, and providing urgent support to farmers affected by declining prices.

“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 urgently, to ensure that we encourage continued investment in food production,” the minister said.

The announcement comes amid a sustained moderation in food and headline inflation following months of tight monetary policy and supply-side reforms. As of December 2025, food inflation fell sharply to 10.84 per cent year-on-year, compared with 39.84 per cent recorded in December 2024.

The easing of inflation has been attributed to improved food supply, reduced foreign exchange pressures and lower import costs. However, Edun warned that prolonged price declines below production costs could discourage farmers, reverse recent gains in food availability and threaten price stability.

He said the government was focused on balancing affordability for consumers with adequate incentives for producers, particularly smallholder farmers who form the backbone of the agricultural sector.

Beyond agriculture, the minister said Nigeria had moved out of crisis stabilisation and entered a consolidation phase after two years of difficult economic reforms. He said the economy had recorded improved macroeconomic stability, reduced foreign exchange volatility, stronger external reserves and growing investor confidence.

Edun cautioned that these gains must be protected through discipline and policy consistency, stressing that the country could not afford to reverse reforms if stability was to translate into sustained growth, job creation and poverty reduction.

He added that Nigeria’s reform efforts had improved its global standing, citing removal from international risk lists, better credit ratings and stronger performance in capital markets.

Looking ahead, the minister said the 2026 budget, described as one of consolidation, renewed resilience and shared prosperity, would focus on translating macroeconomic stability into tangible improvements in living standards. He listed food security, electricity supply, mortgage access, road infrastructure and social protection for vulnerable Nigerians as key priorities.

Edun also said 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.