FG tasks states on production-consumption alignment to protect farmers

L-R, the Minister of State for Agriculture and Food Security, Sen Dr Aliyu Sabi Abdullahi, Minister of Agriculture and Food Security, Sen Abubakar Kyari and the Governor, Enugu State, Barr. Peter Ndubuisi Mbah during the Council Session of the 48th National Council on Agriculture and Food Security held in Enugu, Enugu State.

…says N16.27bn disbursed to 115,000 beneficiaries in 25 states, FCT

…as agriculture records 4.39% growth, contributes 26.15% to GDP

By Gabriel Ewepu

The Federal Government has urged state governments to align agricultural production with consumption and industrial demand to protect farmers from losses, strengthen food supply chains and stabilise food prices.

The Minister of Agriculture and Food Security, Senator Abubakar Kyari, gave the charge on Thursday, November 5, 2026, at the 48th meeting of the National Council on Agriculture and Food Security (NCAFS), held at Hotel Presidential, Enugu.

The meeting, themed, “Enhancing Agricultural Value Chains, Agro-Industrialisation and Market Access for Economic Growth,” brought together commissioners of agriculture from the 36 states and the Federal Capital Territory, development partners and other stakeholders to discuss strategies for strengthening the agricultural sector.

Kyari said developments in the past three years had exposed an imbalance in agricultural markets, with rising food prices putting pressure on households, while subsequent price declines left farmers struggling to recover production costs.

He recalled that food inflation peaked at 40.87 per cent in June 2024 before declining to 8.89 per cent in January 2026, its first single-digit reading in more than a decade. However, it rose again to 19.59 per cent by September 2026, as production and input costs continued to affect farmers and consumers.

The minister attributed part of the renewed pressure to escalating conflict in the Middle East, which disrupted energy, shipping and fertiliser markets, pushing urea prices above $850 per tonne in April 2026 and increasing input, energy and transportation costs across agricultural value chains.

He said President Bola Tinubu had responded by prioritising investment in agricultural production, financing and market development.

According to him, the President has strengthened the operationalisation of the National Agricultural Development Fund (NADF), prioritised the recapitalisation of the Bank of Agriculture (BOA) and supported the introduction of the N200 billion Guaranteed Minimum Price Programme.

Kyari said the interventions were designed to protect farmers’ incentives to produce while ensuring the availability of affordable food for households, rather than relying solely on short-term price relief.

He disclosed that the NADF’s Farm Input Support Programme had reached more than 115,000 beneficiaries across 25 states and the FCT, with N16.27 billion disbursed through agribusiness financing.

Similarly, he said the Bank of Agriculture had financed more than 500,000 smallholder farmers and was anchoring the Guaranteed Minimum Price Programme, which seeks to protect eligible farmers against distress sales through structured purchases and commodity aggregation.

On mechanisation, Kyari said the second phase of the Renewed Hope National Agricultural Mechanisation Programme, involving 1,500 tractors and more than 8,000 pieces of complementary equipment, was underway.

He said the first phase had delivered 2,000 tractors and more than 9,000 implements, adding that the initiative was intended to expand farmers’ access to mechanised services, reduce production costs and improve productivity.

Using maize production as an example, the minister explained that fluctuations in commodity prices affected not only farmers but also feed mills, poultry producers, food processors and consumers.

He stressed that processors needed raw materials in the right quantities and quality, delivered at commercially viable costs, rather than relying on production estimates.

Kyari said this made it necessary to build agricultural value chains that effectively linked production with processing, investment and dependable markets.

He further disclosed that the Special Agro-Industrial Processing Zones initiative was expanding domestic value addition, while the Rural Access and Agricultural Marketing Project was improving connectivity between farming communities and markets.

He added that the World Bank-supported AGROW Project, which was being prepared for implementation, would strengthen commercial partnerships between smallholder farmers and agribusinesses.

The minister also said the African Continental Free Trade Area offered opportunities for Nigerian agricultural products but cautioned that access to regional and international markets depended on compliance with accepted standards for quality, safety, traceability and consistency of supply.

Ahead of the 2027 farming season, Kyari challenged commissioners of agriculture to improve production forecasts, align agricultural supply with industrial demand and strengthen coordination between producing and consuming areas.

He said such alignment would protect farmers from losses, ensure factories received raw materials in the required quantities and quality, stabilise food prices and minimise waste across agricultural value chains.

Citing figures from the National Bureau of Statistics, the minister said Nigeria’s economy grew by 4.43 per cent in the second quarter of 2026, while agriculture recorded 4.39 per cent growth and contributed 26.15 per cent to real Gross Domestic Product.

He added that agricultural value added reached N101.46 trillion at current prices in 2025.

Kyari described the progress as a collective achievement of the Federal and state governments, ministries, departments and agencies, development partners, research institutions, farmers’ organisations and the private sector.

He also commended Enugu State Governor, Peter Mbah, for what he described as his commitment to accountability and measurable governance, noting that the governor’s presentation of his administration’s achievements against its manifesto commitments demonstrated an understanding of public service.

Reflecting on projects visited across the state, Kyari said, “Tomorrow is truly Here,” adding that he was particularly impressed by the governor’s humility and proactive approach to governance.

Mbah seeks shift from production to agro-industrialisation

Declaring the meeting open, Governor Mbah said Nigeria’s agricultural challenge was not a shortage of potential or policies but the inability to translate available opportunities and policy frameworks into an agricultural economy capable of delivering prosperity on a large scale.

He said farmers could record impressive harvests and still struggle to earn decent incomes, stressing the need to move beyond production figures to building viable agricultural businesses and markets.

Mbah disclosed that his administration was pursuing a plan to grow Enugu State’s economy from approximately $4.4 billion to $30 billion, with agriculture identified as one of the principal drivers.

He said agriculture contributed approximately 40 per cent of the state’s GDP when his administration assumed office, adding that his government had since repositioned the sector towards agro-industrialisation.

According to him, the policy shift moved the focus of the Ministry of Agriculture from how much farmers could produce to how much economic value could be created from their output.

Listing the administration’s initiatives, the governor said it had supported more than 60,000 farmers, assembled 107 tractors in Enugu, digitally registered over 84,000 farmers, introduced the 260 Farm Estates Programme and established a 187,000-hectare Land Bank.

Other initiatives, he said, included the expansion of palm and Songhai projects, the revival of Sunrise Flour Mills, the establishment of a livestock centre at Ubahu and the development of a cargo terminal to connect Enugu’s agricultural produce to international markets.

Mbah said the meeting’s theme aligned with his administration’s strategy of connecting production with processing and markets, equipping farmers with machinery, knowledge and technology, attracting private investment and strengthening partnerships with communities.

He declared that Enugu was open for agribusiness, adding that agriculture must make a substantial contribution to President Tinubu’s ambition of building a $1 trillion Nigerian economy by 2030.

Enugu targets $12bn agricultural contribution

Earlier, the Enugu State Commissioner for Agriculture and Agro-Industrialisation, Dr Patrick Nwabueze Ubru, welcomed delegates to the state, which he said was hosting the council meeting for the first time in 14 years.

Ubru said the state was transitioning from largely subsistence agricultural production to a more productive, commercially driven and agro-industrialised economy under Mbah.

He said the transformation had received recognition from the Agricultural Society of Nigeria and the Nigerian Veterinary Medical Association.

The commissioner disclosed that delegates had visited the Enugu Tribu Songhai Farm, Enugu Ranch, an International Fund for Agricultural Development-supported rice mill and a cashew processing plant to assess the state’s agricultural investments and ongoing projects.

He also welcomed the extension of the IFAD programme into next year, describing it as a boost to the state’s agricultural development drive.

According to him, the investments were aimed at supporting farmers, who account for about 75 per cent of the state’s population, while advancing the administration’s ambition of growing the economy to $30 billion by 2031.

He said agriculture was expected to contribute 40 per cent, or $12 billion, to the target.

Ubru called on investors to explore opportunities in Enugu and the South-East, assuring them of the state’s readiness to provide warehouses for federal agricultural inputs and venues for relevant programmes.

He, however, stressed that increased agricultural production must be supported by processing facilities, storage infrastructure, efficient logistics and reliable markets to deliver sustainable economic benefits.