Food inflation: CBN hands over N100bn worth of fertilisers to ministry of agric

The Central Bank of Nigeria (CBN) has given 2.15 million bags of fertilisers worth N100 billion to farmers through the ministry of agriculture and food security.

Olayemi Cardoso, governor of the CBN, presented the bags of fertilisers to Abubakar Kyari, minister of agriculture and food security, in Abuja on Wednesday.

Cardoso said the gesture, which resonates deeply with the livelihoods of all Nigerians, is aimed at curbing the escalating cost of food.

“The CBN places a significant emphasis on maintaining price stability as one of its primary mandates,” he said.

“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-alcoholic beverages.

“This reinforces the critical need to address food inflation as a pivotal aspect of managing overall headline inflation.

“Cardoso also said that the apex bank had been implementing measures to curb inflation over time.

“But 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 the 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.

“In pursuit of these goals, we are delighted to announce the allocation of 2.15 million bags of fertiliser valued at over N100 billion, which we’re humbly handing over to the ministry of agriculture.”

In his response, Kyari commended the apex bank for the kind gesture.

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 also said there is a need to boost repairs of irrigation infrastructure to support the ll-year farming system in the country.

Atiku Bagudu, minister of budget and economic planning, who was also present at the event, commended the CBN for the gesture towards price stability.

Bagudu said the 2.15 million bags of fertilisers would go a long way towards controlling the ever-increasing cost of food.

In October 2023, the CBN had said it would pull back from direct development finance interventions.