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Farmers warn food prices won’t crash unless costs fall

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Nigerian farmers have warned that food prices will remain high unless the burden of high production costs is addressed.

Rising fertiliser prices, escalating input costs, and worsening climate change are squeezing farmers’ margins, leaving many struggling to stay profitable and putting the nation’s food production at risk.

“Until the cost of inputs such as fertilisers, agrochemicals, seeds, transportation, energy and insecurity are adequately addressed, we won’t be able to crash food prices further,” said Kabiru Ibrahim, national president of the All Farmers Association of Nigeria.

There are possible catch-22 situations that could arise, making the policy inimical to internal economic growth, Ibrahim said, referring to the marching order given by President Tinubu to the Federal Executive Council (FEC) to take urgent measures to reduce food prices across the country.

Ibrahim noted that farmers are not sufficiently incentivised to produce due to prevailing market prices that are making profitability impossible.

He cited the current situation of rice and maize farmers grappling with high production costs, which have forced many to abandon cultivation.

Ibrahim noted that significant efforts are required to curb food inflation.

“We support the idea for available and affordable food for Nigerians, but we must take cognisance of sustainable solutions and certainly not ad hoc measures to bring about that, especially when such measures are likely to adversely affect in-country productivity,” he said.

“We must be sympathetic to both producers and users for equity and sustainability,” he added.

High costs of fertilisers, seeds, herbicides, and pesticides are pushing farmers in Africa’s most populous country to the brink, forcing many to reduce their cultivation areas.

Fertiliser prices have surged 41 percent year-to-date, while seeds and herbicides have increased by 10 percent this year, pushing farmers into shifting away from fertiliser-intensive crops.

“Farmers are suffering and the government wants them to produce and give it all out for free when production costs are rising,” said Jude Obi, a professor and president of the Association of Organic Agriculture Practitioners of Nigeria (NOAN).

“Prices of everything are going up. Even the government is increasing the cost for its services because of high production,” he said, citing the recent increase in passport rates. He called on the government to be intentional with its approach and address critical issues to make food prices affordable for Nigerians.

“Farmers are still producing because they don’t have a choice,” he said, noting that lots of them are producing at a loss.

In 2024, the federal government granted a food import waiver on rice, wheat, maize, and other essential food items to ameliorate the country’s worst cost-of-living crisis, largely driven by food inflation.

The food import waiver policy, which has helped crash food prices by 50 percent this year, has been described as a laudable move by the government. However, it is hurting smallholder farmers as they are unable to compete with cheaper imports.

Experts have expressed concerns, saying that reducing transport costs alone will not bring down food prices unless broader issues such as high input costs, insecurity, and other supply-side constraints are also addressed.

Edobong Akpabio, executive director of Greenport Nigeria, said it is possible to further crash food prices, but factors driving food costs must be addressed.

Mufutau Atayese, a professor and vice chancellor of the Federal University of Agriculture and Development Studies, Iragbiji (FUADSI), urged the government to move beyond addressing the issue of logistics to crash food prices.

“It is possible to crash the food prices, but there must be interventions in critical inputs, especially on staples mostly consumed by Nigerians,” Atayese said.

“States must begin to support farmers to focus on crops that they have comparative advantages in their production, as a medium to long-term measure to boost output,” he added.

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National Pension Commission (PenCom) changes price disclosure rule

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National Pension Commission (PenCom) has directed Pension Fund Administrators (PFAs) to discontinue the publication of daily unit prices for Retirement Savings Account (RSA) and Retiree Funds on their websites, replacing the requirement with a six-month disclosure of returns based on a three-year rolling average.

The directive was contained in a circular issued by the commission.

Under the new guideline, PFAs must stop implementing Section 2.0 (iv) of the Commission’s March 23, 2013 circular, which required them to display daily unit prices for the last seven days.

Instead, they are to publish on their websites the last six months’ rate of return — calculated as a 36-month compounded rolling average in line with the Circular for the Calculation and Reporting of Rate of Returns by Licensed Pension Fund Operators (LPFOs).

According to the commission, the rate of return must be clearly displayed on the homepage of each PFA’s website.

For instance, the six-month disclosure covering April to September 2025 would reflect the 36-month compounded returns ending in each of those months.

This has however raised transparency concerns in the pension industry.

The 2013 circular on Minimum Information to be displayed on PFA Websites formed part of PenCom’s transparency framework for the Contributory Pension Scheme.

The latest addendum modifies that requirement but does not remove PFAs’ obligation to disclose performance information.

Industry watchers say the development may reignite debate over the balance between long-term investment reporting and real-time transparency in Nigeria’s pension industry.

All enquiries on the addendum, the Commission said, should be directed to its Surveillance Department.

An industry analyst who does not want her name mentioned said the move could reduce contributors’ access to real-time performance data.

She said: “Daily unit prices allowed RSA holders to independently track short-term movements and detect fluctuations in fund valuation.

“With only a three-year rolling average now required, contributors will no longer see recent performance in isolation”, she noted.

The analyst added that while pension funds are long-term vehicles, removing daily disclosure raises concerns about information asymmetry.

“PFAs will still compute daily valuations internally. The issue is whether contributors should be denied access to data that already exists,” the analyst said.

However, another pension expert defended the directive, noting that pensions are structured for long-term accumulation and should be assessed over extended periods.

“A 36-month rolling average smooth’s out short-term volatility and provides a more accurate reflection of sustained performance,” the expert said, warning that excessive focus on daily fluctuations could encourage reactionary fund switching.

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Dollar rises in black market on Monday, traders quote new exchange rate

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Dollar edges higher against the naira in black market trading Dollar edges higher against the naira in black market trading

The United States dollar at the parallel market increased in value on Monday, Febuary 23 with traders quote at N1,375/$ as the new selling exchange rate.

The new rate is a slight depreciation for the naira when compared to N1,343 a dollar market closed on Friday, February 20, 2026.

Abdulahhi, a forex dealer, told Legit.ng that the new exchange rate follows renew demand in the market.

“I am currently selling dollars at N1,375/$1 and buying at N1,355/$1. The pound is trading at N1,845 to sell and N1,805 to buy, while the euro is also moving steadily in the market.

“It seems this week the dollar will return to over N1,400. I have been getting a lot of request.”

The fall of the naira comes as BDC operators continue to face difficulties in accessing dollars from commercial banks.

BDCs can get dollar

The apex bank had previously issued a circular allowing licensed BDCs to access foreign exchange through authorised dealers at the prevailing market rate.

Under the directive, each BDC is permitted to purchase up to $150,000 weekly, subject to Know Your Customer (KYC) requirements and due diligence checks, Punch reports.

Leadership reported that despite a policy announcement, some operators disclosed that no transactions have been completed under the new arrangement.

A BDC operator, who requested anonymity, said the directive remains largely unimplemented. According to him, the circular provides that disbursements will be made through settlement accounts, a provision that has raised operational concerns.

He questioned the feasibility of seamless, real-time transfers between domiciliary accounts across different banks, noting that such infrastructure may not yet be fully in place.

The operator added that while commercial banks appear supportive of the policy, many are still developing internal processes to align with the CBN’s directive.

He explained that BDCs are required to submit bid orders through their banks, which would then access the market on their behalf.

Naira in the official market

Meanwhile, in the Nigerian Foreign Exchange Market (NAFEM), the naira closed against the US dollar on Friday, February 20 at N1,346.32/$1 from N1,341.35/$1 a day earlier.

At the GTBank FX desk, the naira weakened by N7 against the dollar to quote N1,356/$1.

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