Nigeria bans foreigners from direct purchase of agricultural produce

Nigeria has recently implemented a ban on foreigners directly purchasing agricultural commodities from local farmers in a move aimed at curbing the low pricing of farm produce. With this new policy in place, foreigners will now have to approach commodity associations that will buy produce directly from farmers in the country. The decision has stirred up debates within the agriculture industry and raised concerns about its potential impact on farmers and the overall agricultural economy. Ayodeji Balogun, the CEO of Afex Commodities Exchange, shed light on the implications of this policy change in a recent interview. He emphasized the importance of stakeholder consultation and private sector involvement in shaping agricultural policies. Balogun highlighted the significance of fair pricing, traceability, and sustainability in global commodity markets, urging for a balanced approach that benefits both farmers and investors. The ban on direct foreign purchases poses challenges for established companies with a long history in Nigeria and raises questions about the effectiveness of the new regulations. While aiming to protect local farmers from exploitation by unregistered foreign buyers, the policy also risks limiting market access and investment opportunities for agricultural stakeholders. Balogun stressed the need for a nuanced strategy that considers the diverse interests of farmers, trade associations, and international markets. As the debate unfolds, the agriculture sector awaits further clarity on the implementation and implications of Nigeria's restriction on direct foreign purchases of agricultural produce.