NCX, Bank of Agriculture launch price guarantee scheme to protect 500,000 farmers

The Nigerian Commodity Exchange (NCX), in partnership with the Bank of Agriculture (BOA) and the All Farmers Association of Nigeria (AFAN), has launched the Guaranteed Minimum Price (GMP) Programme aimed at protecting farmers from price volatility and improving food security across the country.

The initiative seeks to provide farmers with guaranteed prices for their produce while strengthening Nigeria’s commodity trading ecosystem.

The announcement was made by the Managing Director and Chief Executive Officer of NCX, Anthony Atuche, in a post on his official X handle.

What they are saying

According to Atuche, the programme is designed to deliver measurable impact across the agricultural value chain by protecting farmers from market uncertainties and ensuring fair returns on their produce.

He disclosed that the initiative targets more than 500,000 farmers nationwide, the securing of 400,000 metric tonnes of grains, and outreach to approximately 11.25 million households.

• “Yesterday, alongside the Bank of Agriculture and the All Farmers Association of Nigeria, we officially launched the Guaranteed Minimum Price (GMP) Programme to transform Nigerian agriculture,” Atuche stated.
• “Under His Excellency President Bola Tinubu’s Renewed Hope Agenda, we are targeting direct, measurable impact: 500,000+ farmers protected with fair price guarantees, 400,000 metric tonnes of grains secured, and 11.25 million households reached nationwide.”

Atuche said the programme is intended to tackle longstanding challenges that have weakened farmer profitability, particularly post-harvest losses and exploitative pricing practices by middlemen.

He noted that the initiative would leverage structured warehousing systems and transparent commodity trading mechanisms to provide farmers with greater income security and improve market access.

• “For decades, post-harvest losses and predatory middleman dynamics have eroded farmer incomes. The GMP Programme changes this. We are leveraging structured warehousing and transparent trading to give our farmers the security they deserve,” he said.

The NCX boss added that the exchange remains committed to building a world-class commodity trading system capable of enhancing food security, promoting rural prosperity, and supporting agricultural transformation.

Get up to speed

The launch comes shortly after the Bank of Agriculture, in collaboration with the Federal Government, introduced the Renewed Hope Smallholder Agricultural Financing Programme aimed at boosting grain production and improving food security.

• The programme targets an increase in Nigeria’s annual grain output from approximately 11 million metric tonnes to 25 million metric tonnes through expanded access to affordable financing and critical farm inputs.
• Under the scheme, farmers will receive subsidised fertilisers, certified hybrid seeds, and other agricultural inputs financed through BOA’s single-digit interest lending facility.
• According to BOA Managing Director, Ayodeji Oludare-Sotinrin, the inputs will be provided through a 9% loan programme rather than grants, ensuring both affordability and sustainability.

The bank selected 20 farm aggregators from more than 1,240 applicants based on technical competence and operational capacity to support farmers during the pilot phase.

The first phase of the programme is expected to benefit about 500,000 farmers this farming season, with plans to expand coverage to two million farmers next year and five million farmers nationwide over the longer term.

What you should know

The Guaranteed Minimum Price Programme aligns with broader government efforts to strengthen agricultural financing and improve food production across Nigeria.

• Earlier this year, the Federal Government approved a N250 billion intervention facility for the Bank of Agriculture to provide smallholder farmers with access to affordable credit at single-digit interest rates.
• The initiative forms part of a wider strategy to enhance agricultural productivity, improve food security, and support farmers through stronger financing, insurance, and value-chain development mechanisms.

The government has also indicated that institutions such as the Nigerian Agricultural Insurance Corporation (NAIC), the National Agricultural Quarantine Service (NAQS), and the Bank of Agriculture will play critical roles in delivering support to farmers and accelerating growth in the agricultural sector.