The Central Bank of Nigeria (CBN) has announced its donation of over two million bags of fertilizers with a total value of N100 billion to farmers nationwide.
The apex bank governor, Yemi Cardoso, delivered the bags of fertilizers to the Minister of Agriculture and Food Security, Abubakar Kyari, on Wednesday in Abuja.
According to him, the donation aligns with the objective of both the apex bank and the agriculture ministry on food security in the country.
Cardoso maintained that the initiative would not only positively impact on many Nigerians but would also help in reducing the escalating food prices in the country
He said: “The CBN places a significant emphasis on 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 to food and non-alcoholic beverages.
“This reinforces the critical need to address food inflation as a pivotal aspect of managing overall headline inflation,” the CBN governor added.
Cardoso further clarified that the apex bank had implemented sundry measures over the past months to moderate the nation’s inflation rate, noting that despite the initiatives, short-term inflationary pressures might persist, primarily driven by increasing food costs.
He explained that this was responsible for the current intensified collaboration between the CBN and the Federal Ministry of Agriculture and Food Security to frontally tackle the surging food prices.
The CBN Governor explained: “In the short term, the inflationary pressure may persist, predominantly driven by escalating food prices.
“This is why we are strengthening our collaboration with the Federal Ministry of Agriculture and Food Security with the shared objective of mitigating the surge in food prices.
“The CBN has veered away from direct quasi-fiscal intervention and transiting towards leveraging conventional monetary policy tools for executing monetary policy effectively.
“We want to extend our support and closer ties with Ministry, Departments and Agencies (MDAs) that bear this mandate.
“And we aim to enhance our partnership with the agriculture ministry to enhance food productivity and security”, Cardoso added.
Speaking at the event, the minister commended the apex bank for its commitment to the food security drive and assured that the ministry “will deliver the fertilisers to the farmers and ensure its judicious use to address the galloping inflation.”
In his remarks, the Minister of Budget and Economic Planning, Sen. Atiku Bagudu, also lauded the apex bank on its efforts towards price stability, assuring that the donated fertilisers will help in reducing the cost of food nationwide.
