Why Food Prices Are Dropping — Federal Government

The Federal Government has explained that the existent driblet successful nutrient prices crossed markets was the nonstop effect of accrued section production, the merchandise of withheld stocks by hoarders and improved coordination betwixt national and state-level interventions to stabilise supply.

Speaking during a ministerial briefing to people the 2025 World Food Day successful Abuja, the Minister of State for Agriculture and Food Security, Senator Aliyu Sabi Abdullahi, said Nigeria’s ongoing cultivation reforms and argumentation consistency person begun yielding disposable results, with farmers signaling higher output crossed large staple crops this year.

According to him, the combined effect of the efforts has boosted marketplace supply, reduced scarcity pressures and restored equilibrium successful the demand-and-supply rhythm that had antecedently driven prices upward.

Abdullahi explained that the 2025 Wet Season Agricultural Performance Survey, conducted by the National Agricultural Extension and Research Liaison Services (NAERLS), showed accordant output improvements successful rice, maize, cassava, sorghum, millet, yam, and cowpea.

He said these gains reflected the result of government-backed investments and farmer-support programmes nether the Renewed Hope Agenda.

The curate stated that President Bola Tinubu’s medication had intentionally ramped up accumulation done the proviso of subsidised inputs, entree to credit, and mechanisation schemes, noting the government’s multi-level involution strategy aimed to marque nutrient some disposable and affordable.

Abdullahi added that nutrient information was being treated arsenic a nationalist priority, not conscionable successful presumption of output, but successful affordability for moving Nigerians. He said the administration’s attack aligns nutrient pricing with income realities, ensuring that low-income earners tin prolong basal nutrition for their households.

The curate linked portion of the terms driblet to a intelligence marketplace displacement that occurred aft the Federal Government announced plans to import constricted nutrient quantities past twelvemonth to span accumulation gaps.

He said the determination discouraged speculative hoarding and led traders to merchandise ample quantities of stored commodities into circulation, expanding proviso and helping to stabilise prices.

He further explained that portion imports were considered arsenic a buffer mechanism, nary important volumes had been released, arsenic the improved home harvests had already offset the need. The operation of accrued production, seasonal abundance, and reduced hoarding created a earthy correction successful marketplace prices.

According to him, authorities governments person besides played a cardinal relation done the constitution of buffer stocks to negociate terms fluctuations. Abdullahi cited examples from Kaduna, Kano, Jigawa, and Niger States, wherever governments person maintained exigency nutrient reserves to enactment citizens erstwhile prices emergence sharply.

He added that to cushion the effects of little commodity prices connected farmers, the authorities is providing escaped inputs and implements done farmers’ associations, cooperative groups, and younker organisations. This, helium said, would trim accumulation costs, prolong workplace incomes, and promote continued cultivation.

He said, “We went into monolithic accumulation nether the agri-pocket programme, injecting astir 500,000 metric tonnes of wheat, maize, cassava, and different staples into the system. The accrued proviso is what has brought nutrient prices down.

“When authorities announced plans to import nutrient past year, hoarders panicked and released stored grains. That is the information of wherefore prices crashed. It was not due to the fact that imports arrived, but due to the fact that speculation collapsed nether the unit of amended harvests.

“The authorities is alert that farmers indispensable proceed to produce, which is wherefore we are supporting them with escaped inputs and mechanisation access. This volition trim their outgo of accumulation portion ensuring affordability for consumers.”

“We person ne'er had specified holistic governmental volition successful this sector. President Tinubu’s enactment has been total, and with ongoing reforms, Nigeria volition soon execute precision agriculture and sustainable nutrient security.”

The curate besides highlighted the national mechanisation drive, which includes the deployment of 2,000 Belarus tractors and implicit 9,000 specialised implements to work implicit 550,000 hectares of farmland. The equipment, helium noted, is fitted with integer systems that forestall misuse and guarantee attraction compliance.

He stressed that the tractors would not beryllium fixed retired arsenic governmental favours but managed done work centres that let smallholder farmers to entree mechanised services astatine affordable rates. This, helium said, would little labour costs, amended onshore preparation, and fortify productivity crossed the sector.

Abdullahi reaffirmed that the authorities is reviewing past silo conce...