As part of efforts to boost food production in Nigeria, the Central bank of Nigeria (CBN) have announced the handing over of 2.15 million bags of fertilizers worth over N100 billion to the Federal Ministry of Agriculture and Food Security.
CBN Governor, Yemi Cardoso, who said this at the Federal Ministry of Agriculture and Food Security, Wednesday in Abuja, noted that the event is in line with its primary mandate of maintaining price stability.
Nigeria’s inflation continues to rise largely driven by food prices.
He said, “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.
“My team and I reiterate our unwavering commitment to prioritising price stability and instilling confidence in the Nigerian economy by upholding consumer price stability and ensuring a balanced foreign exchange market. Despite the prevailing challenges posed by inflation and currency depreciation, we remain resolute in our determination to surmount these obstacles.
“While transient inflationary pressures may persist, we anticipate substantial alleviation by the third quarter of 2024, coupled with diminished exchange rate strains. Our resolve lies in implementing policies that cultivate a resilient macroeconomic environment and enhance the welfare of all Nigerians.”
According to the CBN Governor, with a large population of households expending their resources on food and non-alcoholic beverage, it is important that the country’s galloping inflation is addressed.
The Apex Bank boss noted that while it has been implementing comprehensive measures to curb inflation, it is evident that in the short term, inflationary pressures may persist, predominantly driven by escalating food prices.
“This is precisely why we convene today – to strengthen our collaboration with the Ministry of Agriculture to mitigate the surge in food prices. 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. In this light, we aim to extend our support and foster closer ties with Ministries, Departments, and Agencies (MDAs) with the mandate and expertise to undertake these critical initiatives. Consequently, we aim to enhance our partnership with the Ministry of Agriculture, bolstering your endeavours to enhance food productivity and security, ultimately curbing food inflation and fortifying our pursuit of price stability,” he said.
Cardoso assured that the collaboration with the ministry will ensure food security, “foster economic stability, and uplift the prosperity of our nation.”
On his part, the Minister of Agriculture and Food Security, Senator Abubakar Kyari, said that the gesture by the Central Bank will go a long way to address the nation’s galloping food prices.
While assuring the CBN Governor that the 2.15 million bags of fertilizers will get to the farmers, the minister added that it is important to boost irrigation infrastructure to boost food production.
He said, “We want to express our profound appreciation on behalf of the Nigerian farmers, first to President Tinubu and also to you the Governor of the Central Bank and his team for giving us this wonderful gift and I assure you it will be judiciously used.
“We will deliver it to the last man, to the intended persons, and to the intended farmers, where they can reap the benefit of this huge gesture. And in turn, to cultivate and produce more to stem the galloping food inflation that is affecting our country.”
Sen. Kyari said that with the new partnership with IFAD, Nigeria is on the verge of becoming a net exporter of wheat.
The minister recalled that various challenges mainly, Covid-19, the nationwide flooding and insecurity, impacted food production in Nigeria.
“I must say that we have had a challenging period within the last 7-8 months, it has been challenging for us here in the ministry by some reasons that is beyond our control. Right from the era of Covid, food prices and food cultivation have been impacted in Nigeria and thereafter, in 2021-2022, we had a massive flooding that took place around the country and the issue of climate change and its impact on agriculture in Nigeria.
“Then again, the policy of naira redesign also impacted on our rural low income farmers. That policy came out at the point of cultivation and at the point of planting. Those effects, some conflicts here and there, they really impacted on agric production.
“But am happy to say that those things that I have mentioned are on the decline, insecurity is on the decline and we are beginning to mitigate against climate change by incentivizing farmers to go into dry season agriculture.
There is a need to boost irrigation infrastructure so that we can have all year round farming,” he said.