Months after the Central Bank of Nigeria (CBN) halted direct intervention in the economy, the monetary authority has allocated 2.15 million bags of fertilizer valued at N100 billion to the Federal Ministry of Agriculture and Food Security for distribution to farmers.

The CBN Governor, Olayemi Cardoso, made the announcement, yesterday, at the Ministry of Agriculture and Food Security in the presence of the Minister, Abubakar Kyari; Minister of State, Sabi Abdullah and the Minister of Budget and National Planning, Atiku Bugudu.

He said: “We announce the allocation of 2.15 million bags of fertiliser valued at about 100billion being handed over to the Ministry of Agriculture. This contribution by the CBN is aimed at amplifying food production capabilities and fostering price stabilisation within the agricultural sector and ultimately curbing food inflation and fortifying the pursuit of ensuring price stability,” he said.

The apex bank, on the assumption of office, stopped direct interventions in the economy but noted that the authority was ready to partner with critical institutions to support growth.

At yesterday’s announcement, Cardoso said the contribution by the CBN was aimed at amplifying food production capabilities and fostering price stabilisation within the agricultural sector.

“My team and I reiterate our unwavering commitment to prioritising price stability and installing confidence in the Nigerian economy by upholding consumer price stability and ensuring a balanced foreign exchange market.

“For a long time, intervention by the apex bank in the agricultural sector has been independently done by the bank with little or no input from the parent ministry. The malady according to stakeholders is the reason most farmers have not been benefiting from the gesture,” he said.

Cardoso said the Central Bank has collaborated with the Ministry of Agriculture with the shared objective of mitigating the surge in food prices and in alignment with a strategic shift towards focusing on the CBN’s fundamental mandate.

He said: “The CBN has paired a way from direct quasi-physical intervention and transitioned towards leveraging conventional monetary 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) that bear the mandate and expertise.”

Cardoso projected that although transient inflation pressures may persist, he anticipated substantial alleviation by the third quarter of 2024, especially with the ease of the foreign exchange crisis.

Kyari appreciated President Bola Tinubu and the CBN governor for the gesture, highlighting the fertilizer type presented to include NPK 15:15:15, 20:10:10, urea among others

He assured that the allocation would be judiciously distributed to the intended farmers to reap the benefits of the huge gesture and, in turn, cultivate and produce more to stem the high food inflation.

The minister admitted the last six to eight months have been challenging for the ministry, saying the factors that led to the increase in food prices were beyond its control.

Bagudu commended CBN for the gesture, saying it would go a long way in addressing the food crisis in the country.

Meanwhile, Bagudu said the federal government said it is poised to synergize with the China-Africa Economic and Trade Promotion Council (CAETPC) on agriculture and infrastructure investment in the country.

Bagudu made this known yesterday, during a courtesy visit by the representatives of the CAETPC to the Minister, in Abuja.

Bagudu said that China and Nigeria had a lot to learn from each other and together they could grow, considering numerous investment opportunities in the country.

The minister explained that the ministry was responsible for bilateral economic relations. According to him, “if we are cooperating in agriculture, it is easier for us to get your company to invest in infrastructure too”.

Speaking on behalf of CAETPC, Li Zhensheng said that China and Nigeria were complementary with a lot of experience to share in areas of economic and bilateral cooperation.