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The Federal Government has announced plans to urgently support farmers following a decline in food prices that has, in some cases, dropped below production costs—raising concerns over the sustainability of food production and future supply.
The Minister of Finance and Coordinating Minister of the Economy, Wale Edun, disclosed this on Thursday while delivering the keynote address at the launch of the Nigerian Economic Summit Group (NESG) 2026 Macroeconomic Outlook Report in Lagos.
According to the minister, the government is taking immediate steps to ensure farmers remain incentivised to continue food production despite recent price declines.
“There is a point now to help the farmers, because prices have come below, in some cases, their costs, and that is being addressed very, very urgently, in order to ensure that we encourage continued investment in food production,” Edun said.
Balancing affordability and production
Edun explained that while falling food prices have provided relief to consumers, sustained prices below farmers’ production costs could discourage output and threaten food security if not properly managed.
He noted that the government’s approach is to strike a careful balance between keeping food affordable for consumers and ensuring farmers—particularly smallholder producers—are adequately supported to remain productive.
Inflation eases on improved supply
The planned intervention comes amid a continued easing of food and headline inflation, following months of tight monetary policy and supply-side reforms.
As of December 2025, food inflation stood at 10.84 per cent year-on-year, a sharp decline from 39.84 per cent in December 2024. The moderation has been driven by improved food supply, easing foreign exchange pressures, and lower import costs.
2026 economic priorities
Edun said the government’s 2026 economic priorities include boosting competitiveness, strengthening governance, increasing agricultural productivity, enhancing food security, and accelerating investments in infrastructure, energy, and human capital development.
He stressed that supporting farmers whose production costs now exceed market prices is a critical component of maintaining recent gains in food availability and price stability.
Nigeria enters consolidation phase
Beyond agriculture, the minister said Nigeria has moved beyond crisis stabilisation and is now entering a consolidation phase, following two years of politically challenging economic reforms.
He said the economy has recorded improved macroeconomic stability, reduced foreign exchange volatility, stronger external reserves, and growing investor confidence, but warned that these gains must be safeguarded.
According to Edun, the consolidation phase demands discipline, policy consistency, and a firm commitment to ongoing reforms, noting that Nigeria “cannot afford to pause or retreat” if stability is to translate into sustainable growth, job creation, and poverty reduction.
Improved global outlook
The minister also highlighted improvements in Nigeria’s global economic standing, citing the country’s removal from international risk lists and improved ratings by credit agencies.
He noted stronger performance in the capital market, with stock market capitalisation approaching levels that could enhance Nigeria’s visibility in global investment indices, thereby expanding access to long-term financing for businesses.
Focus of the 2026 budget
Looking ahead, Edun described the 2026 budget as one focused on consolidation, renewed resilience, and shared prosperity.
Key priorities include food security, improved electricity supply, expanded access to mortgages, road infrastructure development, and strengthened social protection for vulnerable Nigerians.
He added that the government would continue reforms aimed at improving revenue collection, blocking leakages, and implementing a pro-poor tax framework that exempts essential food items and small businesses while broadening the tax base.
Edun concluded that the success of the consolidation phase would determine whether Nigeria achieves sustained, inclusive, and job-rich growth in the years ahead.
