The Central Bank of Nigeria (CBN) said it is set to avail rice farmers with access to funding which will facilitate their activities and reduce the cost of producing the commodity. This comes as the government’s decision to shut down Nigeria’s land borders in a bid to end smuggling ended up causing the prices of various staples (including that of rice) to skyrocket.
In a series of tweets sent out earlier today, the CBN also the apex bank has assured Nigerians that the price hike for rice, which is currently being experienced in the country, is only a temporary development that will fizzle out soon.
#Emefielespeaks CBN Intervention funds to farmers will bring down the cost of production, price hike on rice is a temporary phenomenon that will fizzle out soon.#CBNIntervention #Riceproduction #Nigerianfarmers
— Central Bank of Nigeria (@cenbank) November 20, 2019
The CBN also reiterated that the decision to shut down the border was borne out of the need to protect the Nigerian economy. This is because smuggling was becoming a very serious problem such that it was causing Nigerian businesses to collapse whilst threatening Nigerian jobs. Therefore, something holistic needed to be done in order to address the problem.
In the meantime, it can be said that the government’s decision to shut down its land borders is already yielding the expected result. In its latest market survey, Nairametrics reported that border closure has really given local rice farmers a lot of leverage, even as the market is flooded with local rice brands.
The proposed intervention fund by the Central Bank of Nigeria will definitely go a long way to enhance production efficiency on the part of the rice farmers. This is because all that is needed at this juncture is the right investment to fully maximise Nigeria’s potential to not only become self-sufficient in rice production but also potentially export to other countries of the world.
It is important to note that even though many Nigerians initially kicked against the border closure due to the hardship it caused, a lot of them have now changed their opinion on the matter. That notwithstanding, other people still have their reservations.
Whilst these are good policies on the face of it… it becomes terrible if the CBN doesn’t bring rates down to single digits across board. Nigeria’s DMBs rake in billions of NGN for just taking fees, buying Treasury B
How can small businesses thrive in above 20% rates regime?
— Seun Olatunji “圣洁” (@Seun_Olatunji1) November 20, 2019