The Bank of Agriculture (BOA) has launched a ₦200 billion Guaranteed Minimum Price (GMP) Programme under the Federal Government’s Renewed Hope Agenda in Abuja to shield Nigerian farmers from unpredictable commodity price crashes and bring stability to the national food market. Targeting over 500,000 farmers, 400,000 metric tonnes of grains, and 11.25 million households, the initiative establishes a crucial price floor for participating producers of rice, maize, sorghum, and soybeans. According to BOA Managing Director Ayo Sotinrin, the intervention follows severe financial losses suffered by farmers in 2024 and 2025 when market prices fell below production costs. Under this scheme, farmers are guaranteed a minimum price if market values drop, yet retain complete freedom to sell at higher open-market rates whenever demand rises, restoring confidence so growers remain active in production.
To ensure the funds reach their intended target, eligibility is strictly restricted to actual producers affected by price slumps, explicitly excluding open-market grain traders. BOA is collaborating with the All Farmers Association of Nigeria (AFAN) to verify genuine farmers, while partnered aggregation companies will source commodities and process payments directly through BOA's dedicated technology platform. Far from being a grant or subsidy, the ₦200 billion initiative operates as a commercial revolving mechanism designed to recoup 85% of its funds through strategic reselling. Commodities collected during surplus periods will form a national buffer reserve, which will be released back into the market when consumer prices surge to protect millers, processors, and end consumers from unsustainable price hikes. Supported by market infrastructure from the Nigerian Commodity Exchange (NCX), the scheme also unlocks new commercial opportunities for agricultural MSMEs in transport, storage, processing, and commodity marketing.
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