The Bank of Agriculture (BOA) has unveiled a comprehensive food price stabilisation initiative aimed at protecting farmers from market volatility reducing post-harvest losses and strengthening food security across the country through direct purchase of surplus agricultural produce.
Managing Director of BOA, Ayodeji Sotinrin disclosed the initiative during an interview, describing it as part of the agricultural reform agenda of President Bola Tinubu focused on improving farmer welfare and stabilising Nigeria’s food supply system.
According to Sotinrin, the programme will operate through a Guaranteed Minimum Price (GMP) mechanism under which the government will establish a price floor for major staple crops including maize, rice, soybeans and cassava.
He explained that whenever market prices fall below the approved threshold the bank will purchase excess produce directly from farmers and store the commodities in the nation’s 33 silos for future release into the market when necessary to stabilise prices.
Sotinrin said the initiative is designed to protect farmers from exploitative pricing practices while also ensuring a stable and affordable food supply for consumers nationwide.
He noted that the GMP framework is intended to bridge the long-standing gap between rising production costs and low farm-gate prices that continue to discourage many smallholder farmers.
According to him the food price stabilisation programme will be implemented as a nationwide campaign, with extensive sensitisation through various media platforms to ensure broad awareness and participation among farmers and stakeholders.
“Under the arrangement, the government will set a price floor for staple crops such as maize, rice, soybeans and cassava,” he stated.
The BOA managing director also announced a major shift in the bank’s financing strategy from direct micro-credit disbursement to a technology-driven digital ecosystem anchored by farmer aggregation companies.
He explained that the bank now utilises digital platforms and identity verification systems such as the Bank Verification Number (BVN) and National Identification Number (NIN) to open accounts for farmers within minutes, ensuring that financial interventions reach genuine producers rather than middlemen.
Sotinrin further identified mechanisation as a key priority for boosting agricultural productivity, noting that Nigeria currently has a low tractor density of just 0.27 tractors per 100 square kilometres.
To address the challenge he revealed that the bank has deployed 2,000 high-capacity tractors sourced from Belarus to service providers capable of mechanising at least 600 hectares each.
The mechanisation programme is expected to support more than 1.2 million farmers during the ongoing wet farming season.
In addition, Sotinrin announced the launch of a ginger revival programme following the devastating fungal infection that severely affected ginger production in 2023.
He explained that the initiative will introduce tissue culture technology to replace traditional replanting methods, with the target of transforming Nigeria’s ginger industry from a $300 million sector into a $3 billion export industry by 2028.
The BOA boss also disclosed that the Federal Government has issued a presidential directive for the establishment of a permanent National Farmer Data Registry aimed at enabling government agencies, development partners and financial institutions to effectively track farmers and deliver targeted services such as crop insurance, health insurance and financial support.
Beyond the reforms at BOA, the Tinubu administration has continued to prioritise large-scale financing and technology-driven interventions designed to make agriculture more productive, profitable and attractive to investors and young entrepreneurs.
As part of the broader reform strategy, the Federal Government approved a historic N1.5 trillion recapitalisation of the Bank of Agriculture to transform it into a fully-fledged development finance institution capable of providing affordable credit facilities, innovation support and capacity development for farmers, particularly youth and women-led agribusinesses.
The policy direction of the administration places strong emphasis on mechanisation, digital agriculture, research innovation and stronger market linkages as part of efforts to boost national agricultural productivity and achieve long-term food security.
