CBN Allocates 2.15M Bags Of Fertilizers, N100Bn To Agric Ministry

The Federal of Agriculture and Food Security has received 2.15 million bags of fertilizer worth over N100 billion from the Central Bank of Nigeria (CBN), which would be handed to farmers nationwide in an effort to reduce food price increases and boost food production.

In an effort to reduce food price increases and boost food production, the Federal Department of Agriculture and Food Security has received 2.15 million bags of fertilizer, worth at over N100 billion, from the Central Bank of Nigeria (CBN). These bags will be distributed to farmers around the nation.

This comes as Abubakar Kyari, the minister of agriculture and food security, announced yesterday that the 2.15 million bags of fertilizer the CBN had authorized to increase food production have arrived.

As part of a new partnership with the Ministry of Agriculture for the execution of policies that foster a robust macroeconomic environment, CBN governor Olayemi Cardoso announced the donation yesterday.

“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.

Inflation is significantly influenced by food costs, particularly in Nigeria where food and non-alcoholic drinks account for a large amount of family spending. In order to control headline inflation rates overall, it is imperative that food inflation be addressed, as this study confirms. 

Cardoso had declared that the CBN would collaborate with organizations that could manage initiatives instead of taking a direct part in them. He gave his word that the CBN was monitoring and recovering the intervention funds that were hurting the economy to the best of its ability.

Speaking at the event in Abuja yesterday, Mr. Cardoso “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 also addressed audience at the event, he explained that his administration wants to strengthen its collaboration with the Ministry of Agriculture in order to support efforts to increase food security and production. This will help to reduce food inflation and support CBN's efforts to maintain price stability.

The central bank reaffirmed that maintaining consumer price stability and maintaining a balanced foreign exchange market will be its top priorities in order to foster confidence in the Nigerian economy.

The apex bank used a variety of monetary policy tools, but transient inflationary pressure remained. Cardoso says he still expects significant relief from the pressure by the third quarter of 2024, along with lessened pressure from exchange rates.

Minister of Agriculture and Food Security Abubakar Kyari responded by thanking the CBN for the generosity and informing the intended farmers that the fertilizers would be supplied to them sparingly in order to improve food production and help the nation meet its food security targets.

The COVID-19 outbreak, the flooding of 2021, the CBN policy on the redesign of the Naira, and the general insecurity, according to Kyari, have all made the last seven or eight months difficult for his ministry. According to him, Nigeria's agricultural output was negatively influenced by such circumstances.

“We are grateful for this gesture. We will extend the gifts to the last man, to the intended persons,” he said. He noted that efforts are being made to guarantee irrigation-based farming throughout the year.

Also, Atiku Bagudu, the minister of budget and economic planning, expressed gratitude for the CBN's commitment to promoting food security and said that the 2.15 million worth of fertilizer will significantly benefit 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 ntries,” he said.