…CBN, Agric, Budget Planning ministries in strategic partnership to crash food inflation
By Dele Ogbodo
The Federal Government through the Minister of Agriculture and Food Security, Senator Abubakar Kyari, the Minister of National Planning, Senator Atiku Bagudu and the Governor of the Central Bank of Nigeria (CBN), Mr. Yemi Cardoso, have expressed optimism that with the release of N100 billion of fertilizer (2.15 million bags) courtesy of the apex bank on Wednesday, the escalating prices of food stuff in the market will soon begin to fall.
Speaking at the strategic partnership between the CBN and the Ministry of Agriculture and other MDAs at the Ministry Headquarters, Cardoso, said: “Pursuit of these shared goals, CBN is delighted to announce the allocation of 2.15 million bags of fertilizer, valued at over N100 billion which we humbly hand over to the Ministry of Agriculture and Food Security.
“It is with great honour and enthusiasm that I stand before you today to address a matter of paramount importance that not only aligns with the
strategic vision of CBN and the Ministry, but also resonates deeply with the livelihoods of all Nigerians – the escalating cost of food.
He said the Central Bank of Nigeria significantly emphasises maintaining price stability as one of its primary mandates. The Governor said: “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.”
He acknowledged that it is in alignment with the bank’s strategic shift towards focusing on our fundamental mandate, that it veered away from direct quasi-fiscal interventions and transitioned towards leveraging conventional monetary policy tools for executing monetary policies effectively.
He said: “Our support and foster closer ties with Ministries, Departments, and Agencies (MDAs) with the mandate and expertise to undertake these critical initiatives. 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.”
According to him, this contribution from the CBN aims to amplify food production capabilities and foster price stabilization within the agricultural sector.
The Governor, said: “My team and I reiterate our 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, he said.
“Together, we embark on a journey to fortify food security, foster economic stability, and uplift the prosperity of our nation.”
In his address while appreciating the efforts of CBN in the strategic drive towards food security, Abubakar Kyari, promised the 2.15 million bags of fertilizer will be delivered to the farmers who are at the last mile.
With the fertilizer, which will be immediately made available to the farmers, the Minister expressed joy that the impact will help to stem the galloping inflation within 6 to months.
Kyari, however acknowledged that the COVID-19 Pandemic, the massive flooding in the previous years, the Climate Change impact on agriculture, the naira re-design and the insecurity across the country have no doubt impacted on the country’s food nexus.
The Minister, added that efforts at irrigation farming by the Federal Government will now guarantee all year rounds farming in the country.
He also expressed appreciation to the African Development Bank (AfDB) for banking rolling about 50% of fertilizer inputs to farmers while the federal government will take off over 75% of that amount.
In his remark, the Minister of Budget and National Planning, Alh. Atiku Bagudu, said President Bola Tinubu is resolutely committed to strengthen collaboration among MDAs to ramp up food production, adding that it is in the realisation of this that the federal government budgeted over N3 trillion for Agriculture and Food Security in the 2024 budget.
The Minister of State for Agriculture and Food Security Dr. Aliyu Abdullahi, in his remark, said the Ministry has been able to factor the overarching issue of timing which is a critical milestone in achieving food security, adding g that the delivery of over N100 billion fertilizer to farmers through the Ministry is indeed a commendable milestone especially coming at the end of the dry season and the commencement of the raining season.
He added that the Ministry has put in place measures to check fake and political farmers who do not contribute to the country’s food security drive.