“CBN Allocates N100 Billion for Agriculture Funding”
Central Bank of Nigeria Resumes Agriculture Funding to Boost Food Security
The Central Bank of Nigeria (CBN) has resumed its funding intervention in the agriculture sector, responding to the challenges of food security in the country. With an allocated N100 billion, the CBN plans to purchase 2.5 million bags of fertilizers for distribution to farmers across the nation.
Governor of the CBN, Mr. Olayemi Cardoso, highlighted the importance of this investment in agriculture, emphasizing its potential to increase food production and alleviate the current inflation rate, which stands at 29.9 percent.
During the fertilizer handover event at the Ministry of Agriculture and Food Security, Governor Cardoso stated, “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 continued, “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.”
Governor Cardoso explained the CBN’s strategic shift towards leveraging conventional monetary policy tools to execute monetary policies effectively. This shift aims to enhance collaboration with Ministries, Departments, and Agencies (MDAs) with the expertise and mandate to undertake critical initiatives in the agriculture sector.
“In pursuit of these shared goals, we are delighted to announce the allocation of 2.15 million bags of fertilizer, valued at over 100 billion Naira, which we humbly hand over to the Ministry of Agriculture and Food Security,” Governor Cardoso announced. This contribution from the Central Bank aims to boost food production capabilities and stabilize prices within the agricultural sector.
This move by the CBN signifies a commitment to supporting agriculture, a vital sector for Nigeria’s economy and food security. The distribution of fertilizers to farmers is expected to enhance productivity, increase crop yields, and contribute to overall economic stability.
