FG introduces guaranteed price model to de-risk agriculture sector

…flags off distribution of 10mn bags of fertilizer to 2mn farmers

In a bid to structuralise Nigeria’s agricultural sector and shield smallholders from market volatility, the Federal Government on Friday flagged off the distribution of over 10 million bags of fertilizer under a newly introduced ‘Guaranteed Price Model’.

The initiative, aimed at supporting two million smallholder farmers nationwide, represents a fundamental shift from traditional input distribution to an end-to-end institutional support system.

Speaking at the launch in Zaria, Kaduna State, Abubakar Kyari, the Minister of Agriculture and Food Security, stated that the inputs are being rolled out under the Renewed Hope Smallholder Support and Value Chain Fund (RH-SVCF).

According to the minister, the critical upgrade in the current strategy is the introduction of structural delivery frameworks designed to eliminate the historical risks borne single-handedly by smallholders.

He said, “From now on, there is an institution beside you when you plant, and an institution beside you when you sell,” Kyari told farmers gathered for the flag-off. “For generations, farmers carried every risk alone. They borrowed to plant. They prayed for rain. And at harvest, they met a buyer who knew they were desperate. What changes today?”

Kyari who noted that one third of the beneficiaries are women, highlighted that under the new design, every farmer will be linked to a Farmer Aggregation Company, with Arzikin Noma, a Farmer Aggregation Company, leading the flag-off in Zaria.

He stressed that timing is critical. “Fertilizer in August is a different commodity from fertilizer in July.” He said inputs were delivered in mid-July, right as the rains set in, to ensure that farmers do not plant late.

According to him, beyond delivery, the aggregator will stay with the farmer through the entire cycle. This means providing certified seed, fertilizer, and extension support from land preparation to harvest.

At the end of the season, the same aggregator becomes the pathway to market, buying at a Guaranteed Minimum Price approved by government. That price, the Minister said, is a floor “below which the farmer’s sweat cannot be bought.”

Kyari explained that the model aligns the interest of the farmer and the company. “The farmer’s success and the company’s success become the same thing.”

He added that with Arzikin Noma’s investment in local processing, “what our farmers grow will become food and feed here at home,” deepening the value chain and food security.

Kyari also tied the new programme to the history of the host city. “Zaria has been farming city for as long as anyone can remember. This is where the best seeds were selected. This is where farming methods were refined and passed on. Zaria taught farming to much of this country.”

He noted that just down the road, the Institute for Agricultural Research at Samaru has for decades tested varieties, trained extension agents, and shown farmers what is possible. “Today’s flag-off connects that work to the field. Research meets the farmer. Inputs meet the rains. And the harvest meets a market.”

The Minister commended the Bank of Agriculture, noting that inputs were on the ground in the very week the season demands them. He said Arzikin Noma had grown from fewer than 3,000 farmers to over 400,000, with a target of 1 million by 2030.

Reiterating the Ministry’s commitment, Kyari emphasized that the Ministry is fully aligned to farmers’ success under this new model. “The Federal Ministry of Agriculture and Food Security stands squarely behind the farmer. We will not abandon you at planting. We will not abandon you at harvest.”

“A nation that cannot feed itself holds its independence on loan, is not sentiment. It is strategy. Farm well this season, and hold us to our word, government will be judged not by what is said today, but by what happens after the canopies are folded.”

In his remarks, Adeoluwa Michael Adeshola, Group Managing Director, Arzikin Noma, Africa, said, : We didn’t start this company because we wanted to sell agricultural inputs. We started because we believed there had to be a better way to support the people who feed this country.

“Over time, we’ve learnt something very important, agriculture is not just about what happens on the farm, It is about finance. It is about logistics. It is about storage. It is about markets. It is about trust. Most importantly, it is about people’’.

Also speaking at the event, Ayodeji Sotinrin, Managing Director/ Chief Executive Officer, Bank of Agriculture Limited, stated that the bank is building an ecosystem where farmers have access to quality inputs, affordable financing, mechanization support, aggregation systems, structured markets, and value chain partnerships that improve productivity and increase incomes.

He noted that agricultural transformation is not achieved through isolated interventions but effective collaboration of every part of the value chain – from production to processing, from financing to market access, to create an environment where farmers can thrive.

He said, “The programme is designed to reach 2 million smallholder farmers across Nigeria, deploy over 10 million bags of fertilizer, and ensure that farmers receive quality inputs at the right time and in the right quantities to improve productivity

“To date, close to 300,000 farmers have been on boarded into the programme. More than 1.1 million bags of fertilizer and over 16,470 metric tonnes of improved seeds are being deployed through 20 Farmer Aggregation Companies operating across more than 20 states of the Federation.

“Behind this delivery network are 15 accredited input suppliers, creating jobs, strengthening local businesses, and keeping economic activity within our rural communities.”