In a bid to enhance food production nationwide, the Central Bank of Nigeria (CBN) handed over fertilisers worth N100 billion to the Federal Ministry of Agriculture and Food Security on Wednesday.
The Governor of the CBN, Olayemi Cardoso, officially presented 2.15 million bags of fertilisers to the Minister of Agriculture and Food Security, Abubakar Kyari, at the ministry’s headquarters in Abuja.
Addressing attendees at the ceremony, Cardoso reiterated the CBN’s core mandate of maintaining price stability, emphasizing the pivotal role of food costs in inflation. He highlighted that a significant portion of household spending in Nigeria is allocated to food and non-alcoholic beverages, making it essential to address food inflation to manage overall headline inflation rates effectively.
While acknowledging the ongoing measures to curb inflation, Cardoso noted that inflationary pressures, particularly from rising food prices, persist. However, he expressed optimism that these pressures would significantly ease by the third quarter of 2024.
To address the surge in food prices, Cardoso underscored the importance of collaboration with the Ministry of Agriculture. He emphasized the CBN’s strategic shift towards leveraging conventional monetary policy tools to support monetary policies, aiming to foster closer ties with relevant government agencies responsible for critical initiatives.
In line with these objectives, Cardoso announced the allocation of 2.15 million bags of fertilisers valued at over N100 billion to the Ministry of Agriculture. This initiative aims to enhance food productivity and security, curb food inflation, and strengthen the pursuit of price stability.
Before Cardoso assumed office as CBN governor in 2023, the apex bank intervened in the fertiliser market by facilitating access to credit through various programmes, encouraging banks to lend to farmers at concessional rates. These interventions aimed to make fertilisers and other inputs more accessible to farmers.
Responding to the gesture, Minister Abubakar Kyari acknowledged the critical role of fertilisers as a major input in agricultural production. He commended the CBN for providing the commodity, emphasizing its significance in enhancing agricultural productivity.
Kyari highlighted the challenges faced by the agriculture sector, including the impact of the COVID-19 pandemic, flooding, climate change, and the naira redesign policy. Despite these challenges, he expressed optimism, noting a decline in insecurity and efforts to mitigate climate change through incentivizing farming activities.
Furthermore, Kyari emphasized the importance of repairing irrigation infrastructure to support year-round farming across the country.
Also present at the event, Minister of Budget and Economic Planning, Abubakar Bagudu, emphasized the need for collaboration between institutions to address high food prices, attributing them to the high cost of energy. He highlighted the significant increase in budgetary allocation to agriculture in the 2024 budget, aligning with the Federal Government’s agenda.
