The Central Bank of Nigeria (CBN) has clarified that fertilisers it donated to the Federal Ministry of Agriculture and Food Security, last week, does not represent a resumption of direct interventions in the real sectors of the economy.
The apex bank donated 2.15 million tonnes of assorted fertilisers, worth over N100 billion to the ministry last week.
Analysts had wondered if the Olayemi Cardoso administration was going back on its earlier decision to avoid direct interventions in the real sectors of the economy.
The CBN explained that the donated fertilisers were remnants of its stock, which were blended under its previous interventions in the agricultural sector.
According to the bank, the decision was aimed at supporting domestic agricultural production rather than allowing the fertilizers to remain unused and go to waste.
As Cardoso explained that, CBN anticipates that the fertilisers will ultimately support its overall objective of price stability which is being challenged by rising food inflation.
The bank explained that the fertilisers were released to the ministry which deals directly with farmers because as the Governor has said at many fora, “CBN is realigning its focus towards its core mandate of ensuring monetary and price stability, thus stopping its direct involvement in development finance interventions.”
The CBN has, however, promised to support relevant organisations that possess the expertise and capacity to intervene directly.
Consequently, the CBN made the decision to donate the fertilisers to Nigerian farmers through the ministry which possesses the institutional knowledge and infrastructure to effectively distribute the fertilizers to the last mile.
“This partnership is aimed at supporting the Federal Ministry of Agriculture and Food Security’s efforts to enhance food productivity and security, ultimately curbing food inflation and reinforcing the CBN’s pursuit of price stability,” the bank said.
On how the fertilisers will be distributed to farmers across the country, CBN has recommended that the ministry which possesses the requisite expertise and capacity in these matters be responsible for ensuring the fertilisers reach the farmers in the most efficient and effective manner.
CBN also said that the fertilisers would not be sold to Nigerian farmers but distributed free of charge to farmers across the country.
The apex bank said it has fully handed over them to the ministry to manage the distribution modalities, eligibilities, and requirements.
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