CBN provides over N100bn worth of fertilizer to boost food production

 

 

Governor of the Central Bank of Nigeria (CBN), Mr. Olayemi Cardoso, has announced the provision of 2.15million bags of fertilizer worth over N100billion to the Federal Ministry of Agriculture and Food Security (FMAFS) for onward distribution to Nigerian farmers in a bid to boost food production and reduce the high cost of food items in the markets.

Cardoso, who announced this on Wednesday at the headquarters of the Federal Ministry of Agriculture and Food Security in Abuja, said the gesture was aimed at amplifying food production and fostering price stabilisation within the agricultural sector.

He noted that 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.

He said: “It is with great honour and enthusiasm that I stand before you today to address a matter of paramount importance that not only aligns with the core objectives of the Central Bank of Nigeria and the Ministry of

Agriculture and Food Security but also resonates deeply with the livelihoods of all Nigerians – the escalating cost of food.

“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.

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“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.

“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”.