In a move aimed at enhancing food production nationwide, the Central Bank of Nigeria (CBN) has provided N100 billion worth of fertilisers to the Federal Ministry of Agriculture and Food Security.
During a ceremony held at the headquarters of the FMAFS in Abuja, CBN Governor Olayemi Cardoso officially handed over 2.15 million bags of fertilisers to the Minister of Agriculture and Food Security, Abubakar Kyari.
Cardoso emphasized the CBN’s commitment to maintaining price stability, highlighting the significant impact of food costs on inflation rates in Nigeria. He underscored the importance of addressing food inflation as a crucial aspect of managing overall headline inflation rates, given the substantial portion of household expenditure allocated to food and non-alcoholic beverages.
While acknowledging persistent inflationary pressures, particularly driven by escalating food prices, Cardoso expressed optimism about substantial alleviation by the third quarter of 2024. He reiterated the need for collaboration with the Ministry of Agriculture to mitigate the surge in food prices.
In alignment with the CBN’s strategic shift towards leveraging conventional monetary policy tools, Cardoso announced the allocation of 2.15 million bags of fertilisers valued at over N100 billion to the Ministry of Agriculture. This allocation aims to support efforts to enhance food productivity and security, ultimately curbing food inflation and fortifying the pursuit of price stability.
Before Cardoso assumed office as CBN governor in 2023, the apex bank intervened in the fertiliser market primarily through credit facilitation programs such as the Agricultural Credit Guarantee Scheme and the Commercial Agricultural Credit Scheme. These programs encourage banks to lend to farmers at concessionary rates, facilitating access to fertilisers and other inputs.
In response, Minister Abubakar Kyari commended the CBN for providing fertilisers, recognizing the critical role of fertilisers as a major input in agricultural production.
Further details on the initiative are expected to follow.
