The Central Bank of Nigeria (CBN) has given 2.15 million bags of fertiliser, valued at over N100 billion to the Federal of Agriculture and Food Security to be distributed to farmers across the country to mitigate the surge in food prices and improve food production.
This is as the minister of Agriculture and Food Security, Abubakar Kyari yesterday confirmed receiving the 2.15 million bags of fertiliser allocated by the CBN to boost food production.
CBN governor Olayemi Cardoso announced the donation yesterday in a new collaboration with the Ministry of Agriculture for the implementation of policies that cultivate a resilient macroeconomic environment.
“In pursuit of these shared goals, we are delighted to announce the allocation of 2.15 million bags of fertiliser, valued at over 100 billion naira, which we humbly hand over to the Ministry of Agriculture and Food Security. This contribution from the Central Bank aims to amplify food production capabilities and foster price stabilisation within the agricultural sector,” the CBN governor said yesterday.
Food prices are a crucial component of inflation, especially considering that a substantial portion of household expenditure in Nigeria is allocated towards food and non-alcoholic beverages. This reinforces the critical need to address food inflation as a pivotal aspect of managing overall headline inflation rates.
Cardoso had said that the CBN would no longer be involved directly in interventions but would partner with entities that could handle them. He assured that the CBN was doing all within its powers to monitor and recover the intervention monies damaging the economy.
Speaking at the Abuja event yesterday, Mr Cardoso said “In alignment with our strategic shift towards focusing on our fundamental mandate, the CBN has veered away from direct quasi-fiscal interventions and transitioned towards leveraging conventional monetary policy tools for executing monetary policies effectively.”
He told the audience at the event that his administration aims to enhance its partnership with the Ministry of Agriculture, bolstering its endeavours to enhance food productivity and security, ultimately curbing food inflation and fortifying CBN’s pursuit of price stability.
The central bank reiterated its commitment to prioritising price stability and instilling confidence in the Nigerian economy by upholding consumer price stability and ensuring a balanced foreign exchange market.
Transient inflationary pressure persisted despite the deployment of various monetary policy tools by the apex bank. Cardoso says he still anticipates substantial alleviation of the pressure by the third quarter of 2024, coupled with diminished exchange rate strains.
Minister of Agriculture and Food Security Abubakar Kyari in response appreciated the CBN for the gesture, saying that the fertilisers would be judiciously used and delivered to the intended farmers for better food production to achieve the country’s food security goals.
Kyari said the last 7-8 months have been challenging for his ministry due to many challenges, including COVID-19 outbreak, the flooding of 2021, CBN policy on Naira redesign, and widespread insecurity. He said those factors severely impacted agricultural production in Nigeria.
“We are grateful for this gesture. We will extend the gifts to the last man, to the intended persons,” he stated. He said efforts are ongoing to ensure all-year-round farming with irrigation.
Also, the minister of budget and economic planning Atiku Bagudu appreciated the CBN’s resolve to help in ensuring food security, stating that the 2.15 million of fertiliser will go a long way for the Nigerian farmers.
“We want to solve our problem. What the central bank has done shows we can sustain the momentum. Our strategy may need to be sustained from time to time. We are competing with other countries in the world. Collaborating with other instructions is important to ensure we do not lose out to other countries,” he said.