FG launches guaranteed minimum price scheme for 2 million farmers, flags off 10 million bags of fertiliser

The federal government has launched a Guaranteed Minimum Price (GMP) model for two million smallholder farmers while flagging off the distribution of 10 million bags of fertiliser under the Renewed Hope Smallholder Support and Value Chain Fund (RH-SVCF). Minister of Agriculture and Food Security, Abubakar Kyari, unveiled the initiative on Friday in Zaria, Kaduna State.

What the scheme offers farmers

Kyari said the programme marks a major shift in agricultural support by providing farmers with assistance from planting through harvest and guaranteed market access. Every beneficiary farmer will be linked to a Farmer Aggregation Company, with Arzikin Noma coordinating implementation in Zaria. The companies will provide certified seeds, fertiliser, extension services and guaranteed off-take of produce at government-approved minimum prices to protect farmers from distress sales.

Kyari said the programme is designed to strengthen agricultural value chains while ensuring farmers no longer bear production and market risks alone. He stated: 'The biggest shift is not the volume of inputs, but the structure of delivery. From now on, there is an institution beside you when you plant, and an institution beside you when you sell.'

Women inclusion and fertiliser distribution

The minister said one-third of the programme's beneficiaries are women, adding that timely fertiliser distribution during the planting season will help improve crop yields. He also said the guaranteed pricing mechanism aligns the interests of farmers and aggregators while investments in local processing will boost food production, livestock feed and national food security.

Kyari commended the Bank of Agriculture and Arzikin Noma for ensuring prompt delivery of farm inputs ahead of the peak planting season. He noted that Arzikin Noma has expanded its farmer network from fewer than 3,000 to more than 400,000 farmers, with a target of reaching one million by 2030.

Bank of Agriculture details rollout

The Managing Director and Chief Executive Officer of the Bank of Agriculture, Ayodeji Oludare Sotinrin, said the programme is expected to reach two million smallholder farmers across the country with over 10 million bags of fertiliser. Sotinrin disclosed that nearly 300,000 farmers have already been onboarded, while more than 1.1 million bags of fertiliser and 16,470 metric tonnes of improved seeds are being distributed through 20 Farmer Aggregation Companies operating in over 20 states with support from 15 accredited input suppliers.

For the naira and Nigerian consumers, a guaranteed minimum price scheme could reduce post-harvest losses and stabilise food prices by giving farmers confidence to produce more. If implemented effectively, this may lower food inflation over time and support the federal government's food security goals.