“CBN Clarifies Position on Real Sector Interventions with Fertilisers Donation”

The Central Bank of Nigeria (CBN) has clarified that its recent donation of fertilisers to the Federal Ministry of Agriculture and Food Security does not mean a return to direct interventions in the economy’s real sectors.

Last week, the CBN donated 2.15 million tonnes of assorted fertilisers valued at over N100 billion to the ministry. Some analysts questioned whether this signaled a reversal of the CBN’s previous stance on avoiding direct interventions.

The CBN explained that these fertilisers were leftover from previous interventions in the agricultural sector. Rather than letting them go to waste, the bank decided to support domestic agricultural production by donating them.

Olayemi Cardoso, speaking at the event, highlighted that the CBN expects the fertilisers to contribute to its goal of price stability, particularly in the face of rising food inflation.

The CBN clarified its shift in focus, stating that it aims to ensure monetary and price stability, thus stepping back from direct involvement in developmental finance interventions.

However, the CBN expressed its commitment to supporting organizations with the expertise and capacity for direct intervention. This led to the decision to donate the fertilisers to Nigerian farmers through the ministry, which has the knowledge and infrastructure to distribute them effectively.

The partnership with the Federal Ministry of Agriculture and Food Security is geared towards boosting food productivity and security, with the ultimate goal of reducing food inflation and supporting the CBN’s pursuit of price stability.

As for the distribution of the fertilisers, the CBN recommended that the ministry, being well-versed in such matters, handle the task of ensuring efficient and effective delivery to farmers across the country.