BOA Launches N200bn Scheme to Stabilize Food Prices

The Bank of Agriculture (BOA) has unveiled a N200 billion Guaranteed Minimum Price (GMP) scheme in collaboration with the Nigeria Commodity Exchange (NCX) to stabilize food prices and protect farmers' livelihoods in Nigeria. The initiative aims to shield farmers from financial losses due to post-harvest price crashes by establishing a reliable price floor for key produce, including rice, maize, and sorghum.

Ayotunde Sotinrin, CEO of BOA, stated that the scheme targets primary farmers directly, aiming to aggregate approximately one million metric tonnes of grains. The program will involve over 500,000 farmers and 11.25 million households through approved structures.

This intervention responds to the 2024/2025 farming season crisis, where prices of major cereals fell below production costs. The initiative will also include partnerships with farm aggregation companies and a technology-driven payment system directly into farmers' bank accounts.

Additionally, the government plans to introduce solar-powered irrigation systems to enhance productivity and support multiple production cycles.