Farmers seek govt’s intervention over losses
The Federal Government’s decision to ease restrictions on selected food imports may have delivered short-term relief to consumers battling soaring prices, but agricultural stakeholders warn it is inflicting heavy losses
The Federal Government’s decision to ease restrictions on selected food imports may have delivered short-term relief to consumers battling soaring prices, but agricultural stakeholders warn it is inflicting heavy losses on local producers and threatening long-term food security.
At a national press conference on food security, agricultural expert and Managing Director, Foremost Development Services Limited, Dr. Fatai Afolabi, disclosed that about 3,500 rice farmers are considering abandoning cultivation after recording combined losses of more than N93 billion. He said the crisis extends beyond rice to cassava, tree crops and the broader agricultural value chain.
“Food security is not solely about ensuring that food is available and affordable today. It is also about safeguarding the capacity of local producers to continue producing tomorrow,” Afolabi said.
The Federal Government’s temporary relaxation of restrictions on selected food imports has helped to moderate prices of staples such as rice, maize, cassava products, tomatoes and vegetable oils. However, Afolabi argued that while output prices have fallen, production costs remain stubbornly high.
“While output prices have fallen, the cost of producing food in Nigeria remains stubbornly high,” he said, listing expensive fertilisers, high fuel prices, rising transportation costs, costly improved seeds and agrochemicals, limited access to affordable credit, poor electricity supply, weak road infrastructure and inadequate storage facilities as persistent challenges.
In several cassava-producing areas, he noted, tubers are selling at prices that barely cover harvesting costs. Some farmers have reportedly left crops unharvested because the cost of transportation exceeds market value. Tree crop farmers, particularly oil palm and cocoa growers who contend with long gestation periods, are also feeling the strain, with disruptions undermining investor confidence and discouraging new investments.
Read Also: Nigeria needs farm price stabilisation framework to protect farmers, says Yusuf
Afolabi warned that sustained losses could push more farmers out of production, deepening Nigeria’s dependence on imports and exposing the country to global supply shocks and foreign exchange pressures.
“A food strategy that feeds the nation today must also empower those who will feed it tomorrow. Affordable food and profitable farming are not mutually exclusive goals,” he said.
Concerns are equally mounting in the vegetable oil industry, where stakeholders say cheap imports are threatening billions of dollars in investments and millions of jobs.
Chairman, Plantation Owners Forum of Nigeria (POFON), Emmanuel Ibru, described the situation as an existential crisis for an industry that has rebuilt itself over two decades.
“Last year, especially towards the end of the year, we saw a proliferation of imported vegetable oil coming into the country,” Ibru said. He attributed the surge tohigh production costs, which make it difficult for local producers to compete with cheaper foreign alternatives.
The impact, he noted, cuts across the entire value chain. “Commercial palm oil, the red one, is a very important input into vegetable oil. When vegetable oil producers are suffering, people producing palm oil are also suffering,” he said.
Recalling the industry’s troubled past, Ibru said palm oil production was “almost comatose” in the 1970s, 1980s and 1990s. Policy protection, including a ban on the importation of refined, bleached and deodorised vegetable oil, helped revive the sector.
“In the last 20 years, though slow but steady, our production has gone up from roughly 800,000 tons to about 1.3 to 1.4 million tons,” he said, adding that other edible oils contribute an additional 400,000 to 500,000 tons annually.
“That growth came at a cost. Billions of dollars have been invested by foreign and indigenous companies. All these investments are being threatened now by the importation of cheap vegetable oil.”
Ibru warned that between two and three million Nigerians engaged across the edible oils value chain — from smallholder farmers to processors and input suppliers — could be affected.
“While you’re trying to push down commodity prices, what’s the point if the people meant to benefit don’t have the jobs or resources to partake in it?” he asked.
The President, National Palm Produce Association of Nigeria, Alphonsus Inyang, said local prices have crashed by 50 per cent in less than two months, even as the country enters peak production season.
“Currently, at the price we are selling palm oil in this country, we are selling at less than ₦2,000.This is not good enough for smallholder farmers who depend on this for school fees, medicine and the general well-being of their households,” Inyang said.
He alleged that smuggled palm oil is entering through more than 300 entry points across five coastal states. “They offload every night and morning, and at the end of the day we see lorries and trailers leaving Oron, heading to other parts of the country,” he said.
According to Inyang, the unchecked influx is forcing local producers to sell at prices dictated by foreign smugglers while government loses revenue.
“The farmers are being suppressed through the influx of oil that comes in at very cheap prices, thereby forcing local producers to sell at prices determined by smuggled products,” he said.
Chairman of the Vegetable Oil Subsector, Manufacturers Association of Nigeria, Mallam Mohammed Tahir, also urged the Federal Government to enforce existing import policies.
“You have a policy on the ground. You say there is import prohibition on vegetable oil because Nigeria has the capacity. What happened to enforcement?” he asked.
Tahir said low capacity utilisation in many factories reflects the strain on local manufacturers. “The cost of production is very high, and factories that were operating five or ten years ago are now running far below capacity,” he said.
“When you talk of food security, it is not only about bringing food into the country.If you are not self-reliant, there is a big problem because the same crisis can rise again and we will fall back into the same trap,” he added.
He called for decisive government intervention to protect existing investments and attract new ones.
