By Tony Obiechina, Abuja
The Central Bank of Nigeria (CBN) 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.
CBN Governor, Mr Oluyemi 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.
“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.
“While transient inflationary pressures may persist, we anticipate substantial alleviation by the third quarter of 2024, coupled with diminished exchange rate strains.
“Our resolve lies in implementing policies that cultivate a resilient macroeconomic environment and enhance the welfare of all Nigerians.
“I extend my heartfelt gratitude for your collaboration, Honorable Minister.
Together, we embark on a journey to fortify food security, foster economic stability, and uplift the prosperity of our nation.”
In his remarks, Senator Abubakar Kyari, Minister of Agriculture and Food Security, thanked the governor of CBN for the provision of 2.15million assorted fertiliser.
Kyari assured that the fertilizer would be judiciously distributed and used for the cultivation of food items in the country.
He expressed optimism that the gesture from the CBN would arrest galloping food inflation, adding that Nigeria has had very challenging period in the last eight months.
The minister blamed COVID-19 pandemic, flooding, climate change, naira re-design and insecurity as some of the contributory factors to current food inflation in Nigeria.
Kyari underscored the need for all -year- round farming, adding that the Federal Government provides 50 percent subsidy on fertiliser to farmers.
He explained that through the Presidential directive, that farmers are further supported with 75percent subsidy on fertiliser, noting that seeds, herbicides and insecticides are given to farmers free of charge.
The minister who expressed optimism that the gesture from the CBN would go a long way during the dry and wet season farming in the country,disclosed that dry season wheat farming which was flagged-off in Jigawa State by the Federal Government in collaboration with the State in November 2023, would be harvested soon.
He further revealed that wheat farming would be scaled up from the present 120,000 hectares to 250,000 hectares by next year, with the support from the African Development Bank(AfDB). READ ALSO:
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Also speaking, Senator Abubakar Bagudu, Minister of Budget and Economic Planning, said the provision of the fertiliser would go a long way to reduce the prices of food items in the markets.
Bagudu said the strategies and policies enunciated by the present administration are working, adding that there is need for collaboration among all the key agencies of government.
He noted that in the 2024 budget, that the agricultural sector was allocated close to one trillion naira, in line with the Renewed Hope Agenda of the present administration.
In his vote of thanks, Minister of State for Agriculture and Food Security, Senator Sabi Abdullahi, commended the CBN for the timely provision of fertilizer.
Abdullahi assured that the Federal Government was developing structure to weed out and block fake farmers from benefitting from the government’s financial interventions.
