BOA Moves to Curb Food Price Swings

The Bank of Agriculture (BOA) has proposed a ₦200 billion Guaranteed Minimum Price Programme to protect farmers from post-harvest price crashes, stabilise food markets and shield consumers from rising food costs.

Managing Director and Chief Executive Officer of the bank, Ayo Sotinrin, unveiled the proposal during an interactive session with members of the Agricultural Correspondents Association of Nigeria (ACAN) in Abuja, describing it as a strategic intervention to reduce commodity price volatility and strengthen Nigeria's food security.

According to Sotinrin, the initiative was conceived after the sharp decline in crop prices following the 2025 wet-season harvest, which left many farmers unable to recover their production costs.

He stressed that the programme is neither a grant nor a subsidy but a market-driven price stabilisation mechanism that balances the interests of farmers, processors and consumers.

Under the proposed scheme, government would purchase grains from farmers whenever market prices fall below sustainable production costs. The commodities would be aggregated and stored in certified warehouses before being released into the market during periods of scarcity or sharp price increases to moderate food prices.

Using maize as an example, Sotinrin explained that grain prices have previously surged to about ₦550,000 per tonne before dropping significantly. He said that if prices climb to around ₦500,000 per tonne under the proposed arrangement, government-held reserves could be released at between ₦380,000 and ₦400,000 per tonne to ease pressure on consumers while recovering much of the intervention cost.

"This is not simply a farmer support programme. It is a comprehensive market stabilisation strategy designed to balance the interests of producers, processors, consumers and the Nigerian economy," he said.

He noted that the initiative would reduce distress sales by farmers, ensure more predictable raw material prices for food manufacturers, curb inflationary pressures and encourage sustained investment in agricultural production.

Sotinrin added that the proposed price support programme is part of the Bank of Agriculture's ongoing transformation agenda anchored on the "three Rs" restructuring, recapitalisation and repositioning.

He said the reforms are aimed at modernising the institution, strengthening its financial capacity and repositioning it as a technology-driven development finance bank capable of providing efficient and sustainable support to farmers and agribusinesses across the country.

The BOA chief also called on agricultural journalists to help deepen public understanding of the bank's reform initiatives, noting that increased awareness of agricultural financing programmes is critical to improving confidence in government interventions.

He reaffirmed the bank's commitment to building a transparent, inclusive and technology-driven agricultural financing system that enhances productivity, strengthens value chains and supports Nigeria's long-term food security and economic development.