CBN To Fund 6m Metric Tons Of Wheat Production

The Central Bank of Nigeria (CBN) is set to finance local production of 6 million metric tonnes of wheat by Nigerian farmers.

The CBN’s Director of Development Finance, Mr. Yusuf Yila, revealed this on Tuesday during the 2020 dry season stakeholders’ forum in Abuja.

The stakeholders meeting was attended by anchor/processors, commodity associations and participating financial institutions.

Yila urged farmers willing to go into wheat farming to get viable fields, adding that the CBN was prepared to finance it.

He said, “We are doing a pilot for wheat production and the CBN will fund it.

“The CBN is willing to support the Nigerian farmers to produce locally the 6 million metric tonnes of wheat which are imported annually.”

The move by the apex bank is part of measures to strengthen the currency against the dollar and save foreign exchange used in importing 6 million metric tonnes of wheat into the country annually.

The Association of Master Bakers and Caterers of Nigeria had on Monday identified the spiraling prices of wheat flour and other ingredients as the reasons for the hike in bread prices.

The CBN director also revealed on Tuesday the decision of the bank to share farming season losses on equal basis with farmers under its Anchor Borrowers Programme (ABP).

The decision to equally share risks, he stated, demonstrates the finance industry regulator’s commitment to drive food sufficiency in Nigeria.

He noted that this year’s dry season farming will focus on rice, maize and tomatoes.

“The CBN wants to improve yields of these crops as the failure of dry season farming could spell catastrophe on food security,” he added.

Investigation by InsideBusiness.ng revealed that prices of these commodities have spiked in the markets.

He urged the banks to improve financing to farmers, adding that appropriate sanctions will apply if banks failed to finance agriculture.