Nigerian Farmers Lose N5 Trillion in 24 Months Due to Policy Failures and Market Distortions

Nigerian farmers have faced immense challenges resulting in losses amounting to nearly N5 trillion over the past two years. Factors contributing to these losses include policy-induced price crashes, poor weather forecasts by the Nigerian Meteorological Agency (NIMET), and market distortions.

The executive director of PeacePro, Abdulrazaq Hamzat, highlighted the severity of the situation, emphasizing that the agricultural sector is in a deep structural crisis. The losses incurred by farmers have not only affected agricultural capital directly but have also led to a decline in production levels and significant economic stress.

The impact extends beyond primary agriculture to secondary effects such as consumer inflation, GDP contraction, foreign exchange pressures, and security-related costs. The statement also points out that millions of small and medium-scale commercial farmers are among the worst affected, leading to concerns about food security, rural poverty, and social instability.

Urgent policy shifts towards protecting production, preserving capital, and stabilizing markets are recommended to address the crisis.