The Central Bank of Nigeria has indicated that the 2.15 million bags of fertilizers donated to the Ministry of Agriculture and Food Security were from the stockpile of a program initiated by the previous administration, not a new intervention effort.
In a circular posted on its website on Saturday, the apex bank stated that the donation of the blended fertilizers aimed to bolster food security within the country, preferring to distribute them rather than let them go to waste.
The bank stated that It is utilizing the leftover stock of fertilizers, originally blended for past agricultural interventions.
The CBN also reiterated its prior stance that its main function is to oversee monetary policy, and it explicitly denies participation in development financing via intervention programmes.
- “The Central Bank of Nigeria has not initiated any new intervention but has rather donated fertilisers from the remnants of its stock, which were blended under its previous interventions in the agricultural sector.
- “This decision is aimed at supporting domestic agricultural production rather than allowing the fertilisers to remain unused and go to waste.
- “We anticipate that the fertilisers will ultimately support our overall objective of price stability, which is being challenged by rising food inflation.
- “As stated by the Governor of the Central Bank of Nigeria on several occasions, the CBN is realigning its focus towards its core mandate of ensuring monetary and price stability, thus stopping its direct involvement in development finance interventions.
- “The CBN will, however, support relevant organizations that possess the expertise and capacity to intervene directly,” the statement reads.
Backstory
Earlier, Nairametrics reported that the Central Bank of Nigeria (CBN) supported the agricultural sector by distributing over 2 million bags of fertilizers, valued at N100 billion, via the Federal Ministry of Agriculture and Food Security to farmers.
- According to Cardoso, the donation corresponds with the fundamental objective of both the apex bank and agriculture ministries fundamental objective, which centres on food security.
- However, the decision led many analysts to question whether the Olayemi Cardoso administration was reversing its previous stance of steering clear of direct interventions in the economy’s real sectors.
- Addressing the concerns, the central bank published a new circular, maintaining that its focus on monetary policy remains unchanged, and it continues to adopt a hands-off approach in intervention programs.
