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On food price crash, farmers fault FG’s order as agro-imports hit N2.2tn

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Nigeria’s agricultural import bill soared to N2.22tn in the first half of 2025, drawing strong criticism from farmers, rice millers, and stakeholders who argue that the Federal Government’s policies are undermining local production and worsening food insecurity.

The stakeholders also criticised the recent order by President Bola Tinubu to reduce food prices. On September 11, 2025, it was reported that Tinubu ordered a Federal Executive Council committee to further crash the prices of food items across the country.

The Minister of State for Agriculture and Food Security, Sabi Abdullahi, stated this in Abuja, while presenting a paper at a one-day capacity-building workshop for journalists covering the Senate. He said the President’s order would be enforced to further crash prices of food items by ensuring the safe passage of products through various routes across the country.

“I can say it on good authority to you that the President has given a matching order to a Federal Executive Council committee already handling it. On how we are going to promote the safe passage of agricultural foods and commodities across our various routes in the country.

“We are aware, and I’m sure, as media, you are also aware, there are routes through which commodities are taken before they are delivered. If you know the amount of money that is being spent, you can now understand why those commodities have to be expensive at the point of delivery. So, we are working very hard, and we are doing quite a lot. But I’ve just given you a snippet because I’m here, and I felt we should look at that,” Abdullahi had stated.

But this Presidential directive has sparked criticism from farmers and rice millers, who argue that mere pronouncements cannot override market forces or compensate for poor planning.

“The cost of food will go down if transport costs go down, but that alone is not enough,” the National President of the All Farmers Association of Nigeria, Kabir Ibrahim, explained. “Our farmers are complaining that the prices are so low that they cannot buy fertiliser. The importation has dealt with our farmers.”

Rice millers push back

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Chairman of the Competitive African Rice Forum, Peter Dama, faulted the government’s approach, saying it risks alienating private operators and discouraging investment. “The President is dealing with private organisations and companies. You don’t just come out and give an order to crash prices. It doesn’t work that way”.

“At best, the government should have called stakeholders in the transport and agric sectors, discussed with them, and provided subsidies.

Pronouncements without engagement will not work.”

Dama warned that persistent importation and lack of subsidies were forcing many farmers to abandon agriculture. “If you don’t provide inputs and only make pronouncements, farmers will quit. We are not in an autocratic government. Stakeholders must be carried along.”

Tractors still undistributed

Beyond importation and price directives, stakeholders also pointed to delays in mechanisation efforts. In July 2024, the government launched 2,000 tractors to support farmers, but more than a year later, none have been distributed.

Ibrahim said farmers were growing impatient. “The tractors have not been distributed yet. They were launched in July, but up to now, no modalities have been given. We need them to support human labour with machine power.”

An official in the Ministry of Agriculture, who asked not to be named due to the lack of authorisation to speak on the matter, confirmed that modalities for distribution were awaiting presidential approval.

“We are waiting for the presidency. The minister has submitted a distribution list for approval. We expect to flag it off soon. But people must understand that such directives take time because they involve trade, finance, customs, and investment ministries. A technical committee will be set up to address stakeholders’ concerns.”

Purchasing power concern

While the government insists that food price crashes will take time, stakeholders maintain that weak purchasing power remains the biggest obstacle.

Ibrahim stressed, “What we are telling the government is that it is the purchasing power of the Naira that is causing problems. Even if food prices fall, people don’t have the money to buy. That’s why you are not seeing any impact.”

His view was echoed by other stakeholders, who warned that without urgent subsidies for inputs and stronger consumer purchasing power, Nigeria risks deepening its food insecurity.

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N2.22tn agric imports

Data from the National Bureau of Statistics revealed that agricultural imports stood at N1.04tn in the first quarter of 2025, before climbing to N1.18tn in the second quarter. The second quarter figure represented a 32.6 per cent year-on-year increase from N893.25bn recorded in Q2 2024, and a 14.35 per cent rise from Q1 2025.

Comparatively, the value of agricultural imports in the first half of 2024 was N1.81tn, indicating a 22.65 per cent rise within one year. Despite this surge, food prices remain high, and farmers say government interventions have created distortions that leave both producers and consumers worse off.

The sharp rise in imports followed the Federal Government’s introduction of a 180-day duty-free window in July 2024, which allowed licensed millers and firms with backward integration programmes to import staple foods such as maize, husked brown rice, wheat, beans, and millet without paying duties, tariffs, or related taxes.

The policy, designed by President Bola Tinubu’s administration as a stopgap measure against worsening food inflation, ended in December 2024. While the government said it aimed to crash food prices, stakeholders insist the initiative failed to deliver relief.

AFAN president, Ibrahim, argued that the waiver policy only triggered massive importation without addressing Nigerians’ weakened purchasing power. “There must be a rise in imports because there was a 180-day duty-free window. People rushed to import food, but Nigerians have no money to buy it. Even though prices are going down, purchasing power is low, and that is the reality,” Ibrahim said.

According to him, the unsold food glut now affects both government silos and private warehouses. “Government itself is left with food in silos. They bought rice and paddies, but are they selling? Unless we fix systemic issues in customs, transport, and governance, we cannot get results.”

The fallout from duty-free importation has hit local farmers hard. Ibrahim noted that maize, which once sold for about N60,000 per tonne before the duty-free policy, now goes for about N30,000, leaving farmers unable to recover input costs. “Our farmers are not happy; they are not even back to their farms now because maize prices have collapsed. They cannot buy fertiliser, and the effect is adverse,” he said.

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National Secretary of the Small-Scale Women Farmers Organisation in Nigeria, Chinasa Asonye, highlighted how high input costs and poor-quality subsidised products have crippled production. “Fertilisers and herbicides have become unaffordable. Some of the subsidised inputs distributed were expired and caused more harm than good. Government must subsidise inputs so farmers can produce at a reasonable cost,” Asonye said.

She warned that hoarding by traders and government agencies worsened the food crisis. “Some people stored grains in silos expecting to sell when prices rise, but the reverse happened. Grains bought at N140 per kg now sell for N70, and many are running at a loss. Worse still, some imported rice sold at N48,000 has weevils and is not even edible.”

Way forward

Stakeholders agreed that piecemeal interventions—whether through duty-free waivers, directives to crash food prices, or delayed tractor distribution—cannot sustainably address Nigeria’s food crisis.

Dama cautioned, “Yes, reducing transport costs will bring some relief. But the government must also engage rice millers, farmers, and private investors. Import licences should not replace real investment in local production. If we continue like this, we will never be food-secure.”

Asonye added that small-scale farmers, especially women, face the greatest risks. “If farmers cannot break even, they will abandon production or resort to strike actions. That will deepen the food crisis.”

With agricultural imports climbing to N2.22tn in just six months and local farmers struggling with input costs, storage challenges, and poor purchasing power, the outlook for Nigeria’s food sector remains fragile.

The government maintains that its food price crash directive, mechanisation push, and import substitution efforts will eventually ease the burden on citizens. But for farmers and millers, patience is running thin.

Unless subsidies, infrastructure support, and stakeholder consultations become central to government policy, experts warn that Nigeria’s reliance on imports will continue to rise—at the expense of local production and long-term food security.

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Kwara strengthens partnership to boost mechanised farming

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The Kwara State Government has strengthened its partnership with the All Farmers Association of Nigeria and other agricultural stakeholders to advance mechanised farming, environmental sustainability and women inclusion across the state.

The renewed commitment was reaffirmed during a courtesy visit by the leadership of the Kwara State chapter of AFAN to the Kwara State Agro-Climatic Resilience in Semi-Arid Landscapes in Ilorin.

This was contained in a statement issued on Tuesday by the Communication Officer of KWACReSAL, Okanlawon Taiwo, a copy of which was made available to The PUNCH in Ilorin.

Speaking during the meeting, the State Project Coordinator of KWACReSAL, Shamsideen Aregbe, assured farmers of the state government’s continued support toward improving food production, mechanised agriculture and climate resilience.

He said, “Tractorisation remains a critical component of modern agriculture. Access to farming equipment is essential for increasing productivity and addressing food security challenges across the state.”

He explained that the tractor support initiative introduced last year followed a World Bank-backed intervention and presidential directive aimed at supporting farmers with mechanised farming equipment.

Aregbe acknowledged concerns raised about operational challenges affecting some tractors, assuring stakeholders that efforts were ongoing to determine the condition and operational status of the equipment to enable effective utilisation by farmers.

“We must sustain engagement with farming communities, particularly in addressing challenges relating to flooding, agricultural logistics and food security,” he added.

The project coordinator also stressed the need for gender equality and inclusion in agricultural interventions across the state.

“The inclusion of women is not negotiable. We must continue to encourage and support women to actively participate in agricultural programmes and leadership processes,” he stated.

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Earlier, the Chairman of AFAN in Kwara State, Shuaib Ajibola, commended KWACReSAL for its interventions in the agricultural sector, reaffirming the association’s readiness to collaborate on programmes aimed at improving farmers’ welfare and environmental sustainability.

Ajibola disclosed that the association planned to commence an agricultural expo and stakeholder engagement programme across the state following its recent inauguration activities to reconnect with farmers and strengthen agricultural outreach.

“Previous editions of the interventions covered the 16 local government areas of the state and involved stakeholders from different agricultural sectors,” he said.

The AFAN chairman also raised concerns over land use disputes and other agrarian issues affecting farmlands, noting that the development had created anxiety among some farming communities regarding land ownership and rights.

“There is a need for sustained stakeholder dialogue and engagement to resolve disputes and ensure peaceful farming activities across communities,” Ajibola added.

Also speaking, the Project Coordinator of AFAM, AbdulRahman Babatunde, applauded KWACReSAL for its support to farmers, especially in the area of agricultural inputs and mechanised farming.

“ACReSAL provided 100 per cent agricultural inputs to participating farmers last year, and beneficiaries across communities can testify to the positive impact of the intervention,” Babatunde said.

He disclosed that farming activities for the current planting season had already commenced, with farmers actively registering, hiring tractors and preparing their farmlands.

In her remarks, the AFAM Women Leader, Sherifat Ibrahim, advocated increased empowerment and technical training for women in rural communities to enable them to actively participate in mechanised farming.

“There is a need for gender-friendly operational systems and practical training that will make tractor handling easier and more accessible for women and young learners involved in agricultural programmes,” she said.

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Meanwhile, the Environmental Safeguards Officer of KWACReSAL, Mr Abubakar Mohammed, reaffirmed the project’s commitment to gender equality, women’s inclusion and effective grievance management across all project activities.

The renewed collaboration comes amid growing efforts by the Kwara state government to improve food production and strengthen climate-smart agriculture through partnerships with farmer associations, development agencies and international organisations.

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See Full List of Top 10 World’s Largest Economies in 2026

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The United States is projected to remain the world’s largest economy in 2026 with a gross domestic product estimated at $32.1 trillion, according to new global economic forecasts obtained from Focus Economics on Wednesday.

The U.S. continues to lead global output through dominance in technology, finance, healthcare, and advanced manufacturing. Growth in artificial intelligence, healthcare innovation, and high-value industries has further widened its lead over other major economies in recent years.

The top 10 world economies ranked in numbers

1. United States — $32.1 trillion
The United States remains the world’s largest economy, accounting for over a quarter of global output in nominal terms. Its economy is highly diversified, with Silicon Valley driving global leadership in AI, biotech, and software, while Wall Street anchors the financial sector.

2. China — $20.2 trillion
China is the world’s second-largest economy, driven by manufacturing, exports, and large-scale industrial production. It remains the leading global producer of electronics, machinery, and textiles, though it faces structural challenges, including a shrinking population and high debt levels.

3. Germany — $5.4 trillion
Germany remains Europe’s largest economy, supported by a strong industrial base and the Mittelstand network of medium-sized manufacturing firms that form the backbone of its export strength.

4. India — $4.5 trillion
India continues its rapid economic rise, driven largely by services and information technology. Its economy has more than doubled over the past decade, supported by a young population and expanding domestic demand.

5. Japan — $4.4 trillion
Japan remains a global manufacturing powerhouse in robotics, automobiles, and electronics, although long-term growth is constrained by an aging population and structural economic stagnation.

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6. United Kingdom — $4.2 trillion
The United Kingdom is a major service-based economy, with strengths in finance, insurance, and real estate, anchored by the City of London.

7. France — $3.6 trillion
France has a diversified economy led by luxury goods, aerospace, agriculture, and manufacturing, with global brands such as Airbus and LVMH playing major roles.

8. Italy — $2.7 trillion
Italy combines a strong services sector with manufacturing strengths in fashion, machinery, and automobiles, driven largely by its industrial northern regions.

9. Russia — $2.5 trillion
Russia remains heavily dependent on oil and gas exports, with energy revenues playing a central role in its economy despite ongoing sanctions and geopolitical pressures.

10. Canada — $2.4 trillion
Canada rounds out the top 10, supported by natural resources such as oil, forestry, and mining, alongside a strong services and financial sector.

Economists say the global economy is increasingly being shaped by technology, demographics, energy transitions, and geopolitical tensions, all of which will influence how these rankings evolve in the coming years.

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Nigeria misses OPEC oil production quota again

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Again, Nigeria has missed its crude oil production quota set by the Organisation of the Petroleum Exporting Countries after averaging 1.49 million barrels per day in April, below the 1.5 mbpd benchmark.

Figures from the Nigerian Upstream Petroleum Regulatory Commission showed that the country produced an average of 1,488,540 barrels of crude daily in April, representing about 99 per cent of the OPEC quota. When condensates were added, total daily production rose to 1.66mbpd

Last month, the NUPRC said oil production now averaged 1.8mbpd. However, data released on Tuesday was at variance with the report. The latest data mean Nigeria remained below its OPEC allocation for the ninth straight month since July 2025.

The NUPRC document showed that combined crude oil and condensate production peaked at 1.85 mbpd during the month, while the lowest output stood at 1.46 mbpd. The PUNCH reports that the April figures are an appreciable improvement compared to March, when oil output was 1.55mbpd.

Nigeria’s oil production has struggled for years due to crude theft, pipeline vandalism, ageing infrastructure, and underinvestment in the upstream sector. Although output improved marginally in April compared to March, it was still insufficient to meet the country’s OPEC target, underscoring persistent challenges in ramping up production despite government efforts to boost volumes.

The PUNCH reports that Nigeria’s crude production in March was 1.38 mbpd. While there was a 69,000 bpd increase from the 1.31 mbpd recorded in February, the figure is still 117,000 bpd below the OPEC quota.

The figures for February indicated a month-on-month decline of 146,000 barrels per day, widening the country’s shortfall from its OPEC production allocation. This is the eighth consecutive month the country has failed to meet the OPEC quota since July 2025.

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Recall that although Nigeria recorded a marginal improvement in January, when production rose from 1.422 mbpd in December 2025 to 1.46 mbpd, the rebound was short-lived as output fell significantly in February 2026.

Earlier data from NUPRC had also shown that crude oil production weakened at the end of 2025. Production declined from 1.436 mbpd in November 2025 to 1.422 mbpd in December, before recovering slightly in January.

In 2025, Nigeria’s crude oil production fell below its OPEC quota in nine months of the year, meeting or slightly exceeding the target only in January, June, and July.

Nigeria opened 2025 strongly, producing 1.54 mbpd in January, about 38,700 barrels per day above its OPEC allocation. However, production slipped below the quota in February at 1.47 mbpd and weakened further in March to 1.40 mbpd, marking one of the widest shortfalls during the year.

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