Cheap food in Nigeria may become next year’s hunger
In October, Nigerian entrepreneur Chi Tola Roberts travelled to the North of his country and spent two months visiting farms, cooperatives, and agricultural communities. What she saw and heard left her deeply concerned. Farmers are saddened, discouraged, and in some cases, angry.
By Chi Tola Roberts
The Federal Government’s recent directive to slash the prices of farm produce may appear noble at first glance. It seems like a relief strategy to make food more affordable for struggling households amid rising inflation. However, upon closer examination, the decision is not only unsustainable but also dangerous for the future of Nigerian agriculture.
Without government-owned farms or effective buffer systems to absorb the losses that follow such a policy, the entire burden falls squarely on the shoulders of private farmers. And that burden may be too heavy for many to bear.
Profit vanished
Farmers across the North told the same stories about high input costs and high transportation costs, yet the government expects them to sell at reduced prices. How?
The cost of fertiliser, agrochemicals, labour, and logistics remains high, and yet farm-gate prices are being forced downward. For many, profit margins have vanished completely. If a farmer cannot break even this season, what motivation will they have to return to the field next year?
Instead of encouraging production, this price slash risks achieving the exact opposite — discouraging the very people we depend on for food. No one kills a tree by cutting its branches, but that is exactly what this policy has done. It attacked the farmer rather than the root problem.
Farmer bankruptcies
Let’s not forget that most small-scale farmers finance their operations through cooperative or business loans. They plan their repayment schedules based on projected yields and market prices. A sudden crash in farm-gate prices destroys that balance overnight.
Many farmers I spoke with in the North said they are already unable to pay back the loans they took for this farming season. For some, this will mean losing their land, their equipment, and their livelihoods. For others, it means permanent exit from farming.
When loan defaults increase, cooperatives weaken, credit dries up, and the ripple effects spread through the entire agricultural ecosystem.