CBN Boosts Agriculture with 2.15Mn Fertilizer Bags Allocated
By Patience Ikpeme
The Central Bank of Nigeria (CBN) has made a significant contribution to the agricultural sector by allocating 2.15 million bags of fertilizer, worth over 100 billion naira, to the Ministry of Agriculture and Food Security. This move aims to enhance food production capabilities and stabilize prices within the agricultural industry.
This gesture is part of the CBN’s strategy to collaborate more closely with government ministries to address the surge in food prices. The CBN has shifted its focus towards utilizing conventional monetary policy tools to effectively execute monetary policies, moving away from direct quasi-fiscal interventions.
The Governor of the CBN reiterated the bank’s commitment to prioritizing price stability and building confidence in the Nigerian economy. Despite challenges such as inflation and currency depreciation, the CBN remains determined to overcome these obstacles. It is anticipated that inflationary pressures will ease by the third quarter of 2024, along with reduced exchange rate strains.
In response to the CBN’s contribution, the Minister of Agriculture and Food Security, Abubakar Kyari, expressed gratitude for the fertilizer allocation. He emphasized the importance of fertilizer in agricultural production and stated that fair distribution among genuine farmers will be ensured. Kyari highlighted the challenges faced by the agriculture sector due to factors such as the COVID-19 pandemic, flooding, climate change, and the Naira redesign policy.
Kyari also mentioned ongoing government initiatives to support farmers, including the National Agricultural Growth Scheme, which receives subsidy support from the African Development Bank. He emphasized the need to improve irrigation infrastructure to facilitate all-year farming in the country.
Overall, the collaboration between the CBN and the Ministry of Agriculture is expected to boost food production, mitigate the impact of external challenges, and strengthen the agricultural sector in Nigeria.
