CBN Donates Over 2 Million Bags of Fertilizers Worth N100 Billion to Boost Agriculture
The Central Bank of Nigeria (CBN) has made a significant contribution to the agricultural sector by donating over 2 million bags of fertilizers, valued at N100 billion, through the Federal Ministry of Agriculture and Food Security to farmers. The donation was made during a ceremony in Abuja, where CBN Governor Yemi Cardoso handed over the fertilizers to Agriculture Minister Abubakar Kyari.
Cardoso highlighted that the donation aligns with the core objectives of both the apex bank and the agriculture ministry, particularly focusing on food security. He emphasized that this initiative would not only impact the livelihoods of Nigerians but also help in reducing the escalating cost of food.
Maintaining price stability is a primary mandate of the CBN, with food prices being a crucial component of inflation, given the significant portion of household expenditure allocated to food and non-alcoholic beverages in Nigeria. Addressing food inflation is thus vital in managing overall headline inflation, as noted by the CBN governor.
While the CBN has implemented various measures to control inflation, short-term inflationary pressures may persist, especially due to rising food costs. This has prompted increased collaboration with the Federal Ministry of Agriculture and Food Security to jointly tackle the surge in food prices.
The CBN has shifted from direct quasi-fiscal intervention to leveraging conventional monetary policy tools for more effective monetary policy execution. The aim is to strengthen support and collaboration with relevant ministries, departments, and agencies (MDAs) to enhance food productivity and security.
Agriculture Minister Kyari commended the CBN for its generous donation and assured the effective distribution of fertilizers to farmers. He emphasized the importance of judicious use of the fertilizers in addressing inflation.
Senator Atiku Bagudu, the Minister of Budget and Economic Planning, also praised the CBN’s gesture towards price stability. He noted that the donation of 2.15 million bags of fertilizers would significantly contribute to controlling the escalating cost of food.
The collaborative efforts between the CBN and the agriculture ministry demonstrate a proactive approach to addressing food inflation and enhancing food security in Nigeria. This initiative reflects a commitment to sustainable agricultural practices and economic stability.
Nairametrics
