CBN releases 2.15M bags of fertiliser to curb food inflation

The Central Bank of Nigeria (CBN) has provided 2.15 million bags of fertiliser worth over 100 billion naira to address food inflation in the country.

CBN Governor Olayemi Cardoso, while delivering the items to the Federal Ministry of Agriculture and Food Security, stated that this initiative is part of the apex bank’s efforts to boost food production capacity and stabilize prices in the agricultural sector.

Cardoso noted that maintaining price stability is a key objective for the CBN, and emphasised the importance of addressing food inflation to manage overall inflation rates effectively.

He mentioned that although transient inflationary pressures may continue, the bank expects significant relief by the third quarter of 2024, along with reduced exchange rate pressures.

“The Central Bank of Nigeria significantly emphasises maintaining price stability as one of its primary mandates. 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.

“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.

“This is precisely why we convene today – to strengthen our collaboration with the Ministry of Agriculture to mitigate the surge in food prices. In alignment with our strategic shift towards focusing on our fundamental mandate, the CBN has veered away from direct quasi-fiscal interventions and transitioned towards leveraging conventional monetary policy tools for executing monetary policy tools for executing monetary policies effectively.

In this light, we aim to extend our support and foster closer ties with Ministries, Departments, and Agencies (MDAs) with the mandate and expertise to undertake “Consequently, we aim to enhance our partnership with the Ministry of Agriculture, bolstering your endeavours to enhance food productivity and security, ultimately curbing food inflation and fortifying our pursuit of price stability.

“In pursuit of these shared goals, we aredelighted to announce the allocation of 2.15 million bags of fertiliser, valued at over 100 billion naira, which we humbly hand over to the Ministry of Agriculture and Food Security. This contribution from the Central Bank aims to amplify food production capabilities and foster price stabilisation within the agricultural sector.” The CBN boss stated.

He further reiterated the bank’s unwavering commitment to prioritising price stability and instilling confidence in the Nigerian economy by upholding consumer price stability and ensuring a balanced foreign exchange market.

“Despite the prevailing challenges posed by inflation and currency depreciation, we remain resolute in our determination to surmount these obstacles. While transient inflationary pressures may persist, we anticipate substantial alleviation by the third quarter of 2024, coupled with diminished exchange rate strains. Our resolve lies in implementing policies that cultivate a resilient macroeconomic environment and enhance the welfare of all Nigerians,” Cardoso said.