March 13, 2024

CBN resumes agric funding with N100bn

I won't be hijacked by politicians - CBN gov, Cardoso

CBN Governor, Cardoso

The Central bank of Nigeria announced a N100 billion funding to purchase 2.5 million bags of fertilisers to boost agriculture in the country

By Emma Ujah, Abuja Bureau Chief

The Central bank of Nigeria, CBN, has resumed its efforts to boost food production as a means of stemming the current high inflation rate, as it announced a N100 billion to purchase 2.5 million bags of fertilisers, in Abuja, on Wednesday.

The Governor of the CBN, Mr. Olayemi Cardoso said that the investment in agriculture would increase food production and reduce the high inflation.  The current rate of inflation stands at 29. 9 percent.

Speaking at the fertilizer handover event at the Ministyry of Agriculture and Food Security, he said, “As we are all well aware, Hon. Minister, the Central Bank of Nigeria significantly emphasises maintaining price stability as one of its primary mandates.

“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. While the CBN 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.

“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 stabilization within the agricultural sector.”