The Central Bank of Nigeria (CBN) has allocated N100 billion worth of fertilisers to the Federal Ministry of Agriculture and Food Security.
This intervention was formalized during a handover ceremony where CBN Governor, Olayemi Cardoso, transferred 2.15 million bags of fertilisers to Minister Abubakar Kyari at the FMAFS headquarters in Abuja.
Governor Cardoso, addressed the critical role of food costs in overall inflation rates, particularly given Nigeria’s heavy reliance on food and non-alcoholic beverages for household expenditures.
He outlined CBN’s shift towards leveraging conventional monetary policy tools to execute its mandate effectively. This includes strengthening partnerships with ministries and agencies, such as the Ministry of Agriculture, to bolster food productivity and security while curbing food inflation.
Prior to Cardoso’s tenure, CBN’s interventions in the fertiliser market primarily focused on facilitating access to credit through schemes like the Agricultural Credit Guarantee Scheme and the Commercial Agricultural Credit Scheme. These initiatives aimed to make credit more accessible to farmers, thereby indirectly subsidizing fertiliser prices and supporting agricultural production.
Minister Abubakar Kyari also commended the CBN’s initiative, stating that fertilizers were a critical input in agricultural production. The allocation of fertilizers is set to enhance agricultural productivity across Nigeria, ultimately contributing to food security and economic stability.
