The federal government says it will move to support farmers after food prices fell below production cost in some cases, raising concerns about 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 a keynote address at the launch of the Nigerian Economic Summit Group (NESG) 2026 Macroeconomic Outlook Report in Lagos.
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According to him, the 2026 priorities include boosting competitiveness, ensuring good governance, increasing agricultural productivity and food security, and urgently supporting farmers whose costs exceed some food prices, while also accelerating infrastructure, energy, and human capital development.
“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,” the minister said.
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The intervention comes as food inflation and headline inflation have continued to ease, following months of tight monetary policy and supply-side reforms.
As of December 2025, food inflation, a key driver of overall inflation, fell sharply, standing at 10.84 per cent year-on-year, down from 39.84 per cent in December 2024.
The moderation has been driven partly by improved food supply, easing foreign exchange pressures and reduced import costs.
While lower food prices have brought relief to consumers, Mr Edun warned that prices falling below farmers’ costs could discourage production if not addressed, potentially reversing recent gains in food availability and price stability.
He said the government’s focus was to strike a balance between affordability for consumers and incentives for producers, especially smallholder farmers.
Consolidation phase
Beyond agriculture, Mr Edun said Nigeria has now moved beyond crisis stabilisation and is entering a consolidation phase, following two years of politically difficult economic reforms.
He said the economy had achieved greater macroeconomic stability, including reduced foreign exchange volatility, stronger external reserves and improved investor confidence, but warned that the gains must now be protected.
According to him, the consolidation phase requires discipline, policy consistency and a refusal to reverse reforms, noting that Nigeria “cannot afford to pause or retreat” if stability is to translate into sustained growth, jobs and poverty reduction.
The minister said Nigeria’s reform efforts have begun to improve its global standing, citing the country’s removal from international risk lists and improved ratings by credit agencies.
He also pointed to stronger performance in capital markets, noting that stock market capitalisation has approached levels that could improve Nigeria’s visibility in global investment indices, expanding access to long-term financing for businesses.
Mr Edun said this was critical at a time when concessional financing and multilateral funding were declining globally, making domestic savings and private investment increasingly important.
Looking ahead, the minister said the 2026 budget, described as a budget of consolidation, renewed resilience and shared prosperity, would focus on translating macroeconomic stability into real improvements in living standards.
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Key priorities include food security, improved electricity supply, expanded mortgage access, road infrastructure, and social protection for vulnerable Nigerians.
He said the government would continue reforms to improve revenue collection, block leakages and implement a pro-poor tax framework that exempts essential food items and small businesses while broadening the tax base.
Mr Edun added that the success of the consolidation phase would determine whether Nigeria achieves sustained, inclusive and job-rich growth in the years ahead.
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