The Central Bank of Nigeria (CBN) has made a substantial contribution to the agricultural sector by donating over 2 million bags of fertilizers, with a total value of N100 billion, through the Federal Ministry of Agriculture and Food Security to farmers.
Yemi Cardoso, the Governor of the CBN, delivered the bags of fertilizers to Abubakar Kyari, the Minister of Agriculture and Food Security, during a ceremony on Wednesday in Abuja.
According to Cardoso, the donation corresponds with the fundamental objective of both the apex bank and the agriculture ministry, which centers on food security.
He mentioned that the initiative not only profoundly impacts the livelihoods of all Nigerians but is also aimed at reducing the rising cost of food.
- “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-alcholic beverages.
- “This reinforces the critical need to address food inflation as a pivotal aspect of managing overall headline inflation,” the CBN governor said.
CBN working with FG to curb food inflation
Cardoso further stated that the apex bank has implemented various measures over time to control inflation.
However, he said that short-term inflationary pressures might persist, primarily driven by increasing food costs.
Cardoso explained that this has led to an intensified collaboration with the Federal Ministry of Agriculture and Food Security to jointly address the surge in food prices.
- “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,” he added.
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In his remarks, Kyari lauded the apex bank for its generous act.
He assured the CBN governor that the fertilisers would be effectively distributed to farmers.
- “We will deliver the fertilisers to the farmers and ensure its judicious use to address the galloping inflation, ” he said.
The Minister of Budget and Economic Planning, Sen. Atiku Bagudu, who was also present at the event, commended the CBN for the gesture towards price stability.
According to Bagudu, 2.15 million bags of fertilisers will go a long way towards controlling the ever-increasing cost of food.