FOOD SECURITY: EXTENSION POLICIES AND PRACTICES FOR THE POST FUEL SUBSIDY REMOVAL IN NIGERIA
A Keynote Paper Presented by
Her Excellency
PROFESSOR BLESSING K. FARAUTA
Deputy Governor, Adamawa State, Nigeria

7th April 2025
30th Annual Conference of the Agricultural Extension Society of Nigeria (AESON), held at Taraba State University, Jalingo

Good morning, distinguished guests, esteemed colleagues, and fellow stakeholders. It is with great honour and a sense of responsibility that I stand before you today to discuss a matter of paramount importance to the future of our nation: food security in the context of extension policies and practices, as we navigate the challenges and opportunities presented by the removal of fuel subsidy in Nigeria. The removal of fuel subsidy while essential for national development, presents challenges—particularly for those who work diligently to feed our nation: our farmers.

1.0​INTRODUCTION
1.1​Overview of fuel subsidy removal in Nigeria: A pivotal moment in history
The removal of fuel subsidy in Nigeria has been a significant and controversial policy shift. Historically, the Nigerian government subsidised fuel prices to make them more affordable for citizens, especially lower-income groups. However, this policy became financially unsustainable due to the high costs and issues like corruption and inefficiency.

The concept of fuel subsidy has been a topic of significant discussion and debate in Nigeria, especially since 29th May 2023, when President Bola Tinubu, in his inaugural speech, announced that “Fuel Subsidy is gone” (The Punch, 2023). After this announcement, people expectedly expressed their views. Some affirmed their support for the President’s decision, while others stated their concerns over increased living costs and demanded accountability from the government. However, the removal of fuel subsidy marked the end of decades-long government intervention in fuel pricing. This decision was motivated by the necessity to stabilise the economy, reduce fiscal deficits, and reallocate funds to essential sectors like infrastructure, education, and healthcare. The removal of subsidies resulted in a substantial rise in fuel prices, which notably affected the cost of living for Nigerians.

The cost of fuel subsidy on government has many factors such as opportunity cost on development spending which sees that fuel subsidy payment diverts part of the resource for developmental purposes towards consumption (IMF, 2020). Hence, the resources that should have gone into infrastructure, education, health, and security with positive externalities go into consumption. Also, it leads to strain on government’s fiscal space that the ever-growing fuel subsidy bills continue to hit deep into government resources (CBN, 2022). With revenue shortage, fuel subsidy payment means the government will need to borrow to invest in other aspects of governance. Besides, the fact that neighbouring economies operate at market-clearing prices encourages the smuggling of subsidized products out of the country. Therefore, fuel subsidy causes scarcity of fuel in the market and discourages investors in the sector as they cannot guarantee their operations efficiency, profitability, and competitiveness due to market distortions which lead to disincentives investment (OPEC, 2022).

While the government argued that the move was necessary for long-term economic stability, it faced widespread protests and criticism due to the immediate hardships it caused, particularly for vulnerable populations. The policy also had ripple effects on neighbouring countries like Niger, which relied on subsidised fuel from Nigeria. Despite the challenges, the government remains resolute, emphasising the importance of this reform for Nigeria’s future.

The removal of the fuel subsidy marks a transformative period for Nigeria and has sent shockwaves throughout the economy, and the agricultural sector is no exception. While this policy shift is designed to reallocate resources toward critical sectors like education, infrastructure, and health, it also has far-reaching implications for our agricultural landscape. Energy costs, transportation, and the prices of inputs such as fertilisers have escalated, putting pressure on food production systems. However, within this challenge lies an opportunity—to reshape our agricultural extension policies and practices to secure the livelihoods of millions and ensure that no Nigerian goes to bed hungry. For a country known for its vast arable land, diverse agroecological zones, and hardworking farmers, the stakes are high. Yet, it is in moments of great challenge that we find the greatest opportunity for transformation. Agriculture is not just a contributor to our economy; it is the backbone of our livelihoods, our culture, and our collective survival. With rising costs of farm inputs, energy, and transportation, there is an urgent need to reassess and strengthen our agricultural systems.

Therefore, today, I wish to emphasise the critical role of agricultural extension policies and practices in driving food security during this transition. Together, we must view the removal of the fuel subsidy not only as a challenge but as an opportunity to refocus, innovate, and empower.

2.0​HISTORICAL CASE STUDIES FROM COUNTRIES THAT HAVE UNDERGONE SIMILAR SUBSIDY REFORMS
Several countries have undergone subsidy reforms similar to Nigeria’s, offering valuable lessons on the implications and strategies for managing such transitions. Here are some notable examples:
1. Iran: In 2010, Iran implemented a major subsidy reform by replacing fuel and energy subsidies with direct cash transfers to households. This helped cushion the impact on vulnerable populations. However, inflation and economic mismanagement later eroded the benefits, highlighting the importance of maintaining macroeconomic stability during reforms.
2. Ghana: Ghana removed fuel subsidy in 2013, citing fiscal sustainability. The government introduced social interventions, such as free school uniforms and public transportation subsidies, to mitigate the impact on low-income groups. Despite these measures, public resistance and inflationary pressures posed challenges.
3. Indonesia: Indonesia has a history of fuel subsidy reforms, with significant changes in 2005, 2008, and 2014. The government redirected savings from subsidies to infrastructure, education, and healthcare. Public communication and gradual implementation were key to managing public acceptance.
4. Egypt: Egypt began phasing out fuel subsidies in 2014 as part of an economic reform program. The government introduced targeted cash transfers and food subsidies to support the poor. The reforms were accompanied by broader economic measures, such as currency devaluation, which added to inflationary pressures.
5. India: India reformed its fuel subsidy system by introducing direct benefit transfers (DBT) for cooking gas subsidies. This reduced leakages and ensured that subsidies reached the intended beneficiaries. The success of DBT highlights the role of technology in improving subsidy efficiency.
These case studies underscore the importance of clear communication, targeted social safety nets, and gradual implementation to minimise the adverse effects of subsidy reforms.

3.0​FOOD SECURITY AND ITS SIGNIFICANCE IN NIGERIA’S CONTEXT
Food security refers to a state in which all people, at all times, have physical, social, and economic access to sufficient, safe, and nutritious food that meets their dietary needs and preferences for an active and healthy life. It includes four essential pillars: availability (ensuring there is an adequate supply of food, whether through domestic production or imports), access (ensuring people can obtain food through purchasing, bartering, or other means), utilisation (ensuring food is consumed in a way that meets nutritional requirements, including proper storage, preparation, and distribution), and stability (ensuring consistent access to food over time, without disruptions due to economic, environmental, or political factors).

Food security is not just a moral imperative, it is an economic and social necessity. Access to nutritious food makes people healthier, more productive, and better equipped to contribute to our nation’s growth and development. However, the challenges we face are significant – climate change, soil degradation, and water scarcity threaten our agricultural productivity, and poverty, inequality, and conflict undermine our ability to ensure everyone has access to the food they need. In Nigeria’s context, food security is particularly significant due to the following reasons:
1. Population growth: Nigeria has one of the largest and fastest-growing populations in Africa. Ensuring food security is critical to meet the dietary needs of its people.
2. Economic stability: Agriculture is a major part of Nigeria’s economy, employing a large portion of the population. Food security strengthens this sector and reduces reliance on imports.
3. Conflict and climate change: Armed conflicts and climate-related challenges, like desertification and flooding, disrupt food systems. Food security efforts can help stabilise regions affected by these issues.
4. Reducing poverty and malnutrition: Ensuring food security helps combat poverty, malnutrition, and hunger, which are prevalent in many parts of the country.
5. Impact of subsidy removal: The removal of fuel subsidies has increased transportation and production costs, driving up food prices. Addressing food security becomes vital to mitigate the resulting hardships.
By addressing food security, Nigeria can enhance the well-being of its citizens, support economic growth, and promote social cohesion.

3.1​Impacts of fuel subsidy removal on food security
The removal of fuel subsidy in Nigeria have had profound implications for food prices and agricultural production. It has increased the cost of production for our farmers, making it harder for them to produce the food we need. It has also increased the cost of transportation, making it harder for our people to access the food they need. We must act quickly to mitigate these effects and ensure that Nigerians do not suffer. These impacts include:
1. Impact on food prices
i. Rising cost of food: The removal of subsidies has led to higher fuel prices and directly increased transportation and production costs which will be passed on to consumers through higher food prices. This has caused a significant rise in the prices of staple foods like rice, beans, yam, and garri.
ii. Inflationary pressure: The higher fuel cost has contributed to overall inflation, making it more expensive for consumers to afford basic food items.
iii. Reduced food availability: Higher production and transportation costs may reduce food production and availability, particularly for staple crops like maize, rice, and cassava.
iv. Increased poverty and hunger: The most vulnerable populations, including the poor, women, and children, will be disproportionately affected by the increased food prices and reduced availability. Smallholder farmers, who form the backbone of Nigeria’s agriculture, are also vulnerable.
2. Impact on agricultural production
i. Increased transportation costs: With higher fuel prices, the cost of transporting agricultural inputs (like seeds and fertilisers) and outputs (harvested crops) has risen. This has made farming more expensive and reduced farmers’ profit margins. The increase in transportation costs has also led to a rise in the prices of agricultural commodities, making it difficult for farmers to compete in the market (Adeolu et al., 2022).
ii. Impact on mechanised farming: Farmers relying on fuel-powered machinery, such as tractors and irrigation systems, face higher operational costs. This could discourage mechanized farming and reduce agricultural productivity.
iii. Limited market access: Many farmers, especially in rural areas, face challenges in accessing markets due to the high fuel cost. This limits their ability to sell their produce and affects their income.
iv. Higher input costs: The cost of agricultural inputs has risen, making farming more expensive and less sustainable for smallholder farmers.

3.2​Some benefits of fuel subsidy removal to farmers in the context of food security
Addressing food security is crucial, especially in the context of subsidy removal, as it directly impacts the well-being of citizens and the stability of the economy. According to Sodiq (2023), the removal of fuel subsidies has both positive and negative effects on farmers and food security situation. While it may initially lead to increased costs and challenges, there are several potential benefits for farmers on the long run. Here are some of the benefits of fuel subsidy removal to farmers:

1. Market competition
Fuel subsidies often distort market dynamics by artificially reducing the cost of fuel. When subsidies are removed, the prices of fuel products increase, leading to a more realistic market environment. This can encourage competition among suppliers, potentially resulting in better quality fuel products and services for farmers.

2. Investment in infrastructure
Fuel subsidies consume a significant portion of a country’s budget, limiting funds available for other crucial areas such as infrastructural development. With the removal of subsidies, governments can allocate more resources to build and maintain better transportation networks, rural roads, irrigation systems, and storage facilities. Improved infrastructure can enhance farmers’ access to markets, reduce post-harvest losses, and increase overall agricultural productivity.
3. Rational resource allocation
Fuel subsidies often lead to inefficient use of resources. When fuel prices are artificially low, there is little incentive for farmers to adopt more efficient and sustainable practices, such as using modern machinery, investing in energy-efficient technologies, or exploring alternative energy sources. Removing subsidies can encourage farmers to optimize their resource use, adopt better practices, and invest in technologies that reduce their dependency on fossil fuels.
4. Environmental benefits
Fuel subsidy removal can contribute to environmental sustainability. Subsidies tend to encourage excessive fuel consumption, leading to higher greenhouse gas emissions and air pollution. By eliminating subsidies, there may be greater emphasis on energy conservation and adoption of cleaner energy alternatives in agriculture. This can help mitigate climate change, improve air quality, and protect natural resources for future generations of farmers.
5. Economic diversification
By removing fuel subsidies, governments can redirect the saved resources towards other sectors, such as education, healthcare, and rural development. This can stimulate economic diversification, create new employment opportunities, and provide farmers with access to services and infrastructure that enhance their livelihoods. A more diversified economy can also reduce the vulnerability of farmers to fluctuations in global fuel prices.

4.0​EXTENSION POLICIES AND PRACTICES TO ENHANCE FOOD SECURITY IN THE POST-FUEL SUBSIDY ERA
So, what can we do?
Agricultural extension policies and practices refer to the frameworks, strategies, and activities designed to transfer agricultural knowledge, technologies, and innovations to farmers and rural communities. The goal is to enhance agricultural productivity, improve livelihoods, and ensure sustainable use of resources. Agricultural extension policies and practices are crucial for bridging the gap between research and real-world farming. They empower farmers with the tools and knowledge to overcome challenges, especially in the face of modern pressures like climate change and economic shifts. Agricultural extension can play a critical role in mitigating the impacts of removing fuel subsidies in Nigeria by empowering farmers and rural communities with knowledge, resources, and strategies to adapt to economic changes. Here are some ways agricultural extension services can contribute:

First, we must strengthen our extension services, providing our farmers with the training, inputs, and support they need to improve their productivity and efficiency. To enhance food security in the post-subsidy era, extension services must be revitalised and adequately funded through:
1. Training and capacity building
Empowering extension officers: Regular training programs should be organised to equip extension officers with modern agricultural knowledge and digital tools enabling them to provide tailored guidance to farmers facing unique challenges. These trainings should help farmers adopt new techniques such as climate-smart practices, resource-efficient farming, and crop diversification. This includes promoting crops that are well-suited to the local climate and soil conditions

2. Digital transformation
Digital platforms for knowledge sharing: We need to invest in developing and deploying mobile applications and SMS-based platforms to provide farmers with real-time updates on weather patterns, market prices, and farming techniques. These should use include digital tools to deliver expert consultations to farmers in hard-to-reach areas, reducing the dependence on physical visits and fuel consumption.

3. Inclusive and targeted approaches
Prioritize vulnerable groups: Women and youth play a crucial role in agriculture. It is important to tailor programs to address the specific needs of women and youth, offering them better access to resources and opportunities to drive agricultural innovation. There is also a need for continuous engagement of local farmer groups and cooperatives to foster a sense of ownership and ensure the sustainability of initiatives. Empowering local farmer groups and cooperatives will create a network of peer-to-peer learning and mutual support, reducing dependence on external resources.

4. Renewable energy investments.
Considering increasing energy costs, it is crucial to emphasise the adoption of sustainable agricultural practices. These approaches will optimise resource utilisation while ensuring the protection of our environment. We need to advocate for investments in renewable energy sources such as solar-powered irrigation and storage facilities to reduce dependence on fossil fuels. Irrigation development by investing in solar-powered irrigation systems will reduce farmers’ dependence on rainfall, improve crop yields, provide them with a reliable and sustainable water source and mitigate the impact of high fuel prices on agricultural operations.

5. Facilitate cooperative farming and encourage agricultural insurance
We need to encourage the formation and strengthening of farmer cooperatives to pool resources, reduce individual costs, and improve bargaining power for inputs and market prices. It is essential to encourage farmers to adopt agricultural insurance as a strategic measure to mitigate the risks associated with fluctuations in fuel prices.

6. Enhance market access/storage
We need to strengthen farmer-market linkages by promoting local agricultural markets and trade fairs. Provide farmers with better prices for their produce and consumers with better access to the food they need. Develop e-commerce platforms that connect farmers directly to consumers and buyers. Promote food storage and preservation techniques to reduce post-harvest losses and improve food availability.

7. Fostering collaborations and partnerships:
Addressing food security requires a unified effort that brings together government agencies, private sector players, civil society organisations, and international partners. These collaborations can unlock access to credit, technology, and markets for smallholder farmers as well as strengthen relationships between extension services and local farmer associations to ensure that solutions are relevant and community-driven.

8. Awareness and advocacy
Mass media campaigns using radio, television, and social media would help to promote awareness about the benefits of the proposed policies and practices. There is need to highlight successful case studies to encourage adoption and build trust among farmers.

9. Leveraging research and innovation
Partnering with universities and research centers to develop region-specific solutions, such as improved crop varieties and efficient farming techniques will help to address the challenges. There is need to re-establish on-farm trials and demonstrations of new technologies and methods directly on farmers’ farms to build confidence and encourage widespread adoption.

10. Policy coordination and monitoring.
Finally, at the heart of all these efforts lies the need for strong policy frameworks and political will. We need to advocate for agricultural policy reforms that promote sustainable agriculture, reduce dependence on fossil fuels and support farmers livelihoods. We need to ensure that federal, state, and local government policies align and support each other to avoid duplication of efforts and ensure efficient resource allocation. We also need to establish monitoring and evaluation frameworks to track the progress and impact of policies, enabling timely adjustments to address emerging challenges. Establishing robust mechanisms to monitor the implementation of extension policies will ensure accountability and continuous improvement.

With the right support and innovation, agricultural extension services can help Nigerian farmers navigate the challenges posed by the removal of fuel subsidies and thrive despite economic pressures.

5.0​SOME ACTIONABLE RECOMMENDATIONS
1. Subsidize agricultural inputs & Fuel Vouchers:
i. Provide targeted subsidies for essential inputs such as seeds, fertilizers, and pesticides to offset increased production costs caused by higher fuel prices.
ii. Introduce fuel vouchers specifically for farmers to reduce the cost of operating machinery like tractors and irrigation systems.
2. Improve rural infrastructure and implement Public Transportation Subsidies
i. Invest in building and maintaining rural roads to reduce transportation costs for farmers moving inputs to their farms and outputs to markets.
ii. Develop affordable storage and agro-processing facilities and cold-chain infrastructure to minimize post-harvest losses and add value to agricultural products.
iii. Public transportation subsidies can encourage citizens to rely more on affordable and sustainable transportation options. Government can allocate funds to subsidize public transportation fares, making it more accessible and attractive for individuals to choose public transport over private vehicles. This measure not only helps individuals cope with increased fuel prices but also promotes a shift towards greener transportation solutions.

3. Strengthen financial support
i. Establish low-interest loan programs for smallholder farmers to help them cope with rising costs and sustain their operations.
ii. Expand access to microcredit and agricultural insurance to protect farmers from risks such as crop failure or price fluctuations.
iii. Implement social safety nets, such as cash transfers and food assistance programs, to support vulnerable populations.

4. Promote mechanization and innovation
i. Offer grants or subsidized leasing programs for farm machinery to encourage mechanized farming and improve productivity.
ii. Invest in research and development to introduce cost-effective and fuel-efficient agricultural technologies.

5. Promote renewable energy in agriculture/incentivizing sustainable practices
i. Subsidies for Green Technologies: Provide financial incentives for farmers to adopt renewable energy solutions, such as solar-powered irrigation systems, processing units, and resource-efficient practices to reduce dependence on fuel. By diversifying the energy mix, reducing dependence on fossil fuels, and promoting clean energy initiatives, the impact of fuel subsidy removal can be mitigated. Increased investment in renewable energy will not only contribute to a sustainable future but also create job opportunities and stimulate economic growth.
ii. Access to affordable credit: Partner with financial institutions to offer low-interest loans or grants to smallholder farmers for investing in sustainable practices and technologies and for adopting clean energy technologies in farming activities.
6. Strengthen policy frameworks
i. Ensure that part of funds saved from subsidy removal are transparently redirected to support agriculture.
ii. Implement policies that stabilize food prices, such as price floors or guaranteed purchase programs for staple crops.
iii. Government should implement effective price regulation mechanisms. By monitoring fuel prices and enforcing regulations, authorities can prevent exploitative practices in the market. This helps maintain a competitive environment and ensures that citizens are not subjected to exorbitant fuel prices during the transition period.
7. Resilience against external shocks
i. Emergency response systems: Create frameworks to provide farmers with support during unexpected crises, such as natural disasters or market fluctuations.
ii. Insurance schemes: Expand access to agricultural insurance to safeguard farmers against risks like crop failure and extreme weather events

These policies, if effectively implemented, could help cushion the impact of subsidy removal on agriculture, ensuring the sector remains resilient and continues to contribute to national food security and economic growth.

By combining these strategies with strong leadership, adequate funding, and commitment from all stakeholders, Nigeria can address the challenges posed by the removal of the fuel subsidy and ensure a resilient, productive, and inclusive agricultural sector. The overall impact of these policies on smallholder farmers will depend on how effectively they are implemented. Strong government support, equitable resource distribution, and stakeholder collaboration will be key to ensuring that smallholder farmers can thrive in this new era. With the right support systems, these farmers could become more resilient and productive contributors to Nigeria’s food security.

6.0​CONCLUSION: A CALL TO ACTION
Ladies and gentlemen, food security is a critical issue that requires urgent attention, the road ahead may be challenging, but it is also rich with promise. The removal of fuel subsidy has increased the challenges faced by Nigerians, it also presents us with an opportunity to rethink our approach to agriculture and food security, the opportunity to build a more resilient and sustainable food system—one that not only feeds the nation but also empowers its people. By implementing the above extension policies and practices, Extension can help mitigate the impacts of fuel subsidy removal on food security and support the most vulnerable populations by effectively utilising the additional funds generated from the subsidy removal to foster the development and growth of the agricultural sector.

Today, I call on policymakers, extension workers, farmers, researchers, and every Nigerian to embrace this moment with courage and commitment. As we stand at this crossroads, let us invest in our agricultural extension services, and resolve to prioritize the welfare of our farmers, the sustainability of our practices, and the security of our food systems. Together, we can transform our agricultural sector into a pillar of prosperity and ensure that the promise of food security becomes a reality for every Nigerian not just an aspiration. Let us act now, boldly and decisively.

Thank you, and may God bless the Federal Republic of Nigeria.

References

Adeolu, A. A., Obayelu, O. A., &Ogunniyi, L. T. (2022). Farmers’ perception of fuel subsidy removal on agricultural productivity in Nigeria. Journal of Agricultural Economics and Development, 12(1), 1-12. DOI: 10.5897/JAED2021.0649

CBN (2022). Fuel Subsidy Removal: Implications for the Nigerian Economy. Central Bank of Nigeria.

IMF (2020). Nigeria: Fuel Subsidy Reform. International Monetary Fund. International Energy Agency (2020). Energy Subsidies. IEA.

OPEC (2022). Annual Statistical Bulletin. Organization of the Petroleum Exporting Countries.

The Punch (2023). Fuel Subsidy Removal: Nigerians Express Mixed Reactions.

Sodiq Lawal (2023) 5 benefits of fuel subsidy removal to Nigerian farmers Retrieved from farmingfarmersfarms.com › 5-benefits-of-fuel-subsidy-removal-to-nigerian

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