CBN Provides Clarity On Fertilizer Donations For Real Sector Support

CBN Provides Clarity On Fertilizer Donations For Real Sector Support....KINDLY READ THE FULL STORY HERE▶

The Central Bank of Nigeria (CBN) has clarified that its recent donation of fertilizers to the Federal Ministry of Agriculture and Food Security does not signal a return to direct interventions in the real sectors of the economy. The donation, which amounted to 2.15 million tonnes of assorted fertilizers valued at over N100 billion, raised questions among analysts regarding the CBN’s previous stance on avoiding direct involvement in real sector interventions.

However, the CBN explained that these fertilizers were part of its existing stock, originating from previous agricultural sector interventions. Rather than allowing these fertilizers to go to waste, the decision was made to support domestic agricultural production by donating them to the ministry. This move aligns with the CBN’s objective of ensuring price stability, particularly in the face of rising food inflation.

Governor Olayemi Cardoso emphasized that the CBN is realigning its focus towards its core mandate of ensuring monetary and price stability, thus reducing direct involvement in developmental finance interventions. While the CBN remains committed to supporting relevant organizations with the expertise and capacity for direct intervention, it chose to partner with the Ministry of Agriculture and Food Security due to its institutional knowledge and infrastructure for efficient fertilizer distribution to farmers.

The partnership aims to enhance food productivity and security, ultimately addressing food inflation and reinforcing the CBN’s pursuit of price stability. The CBN has entrusted the ministry with the responsibility of distributing the fertilizers to farmers across the country, leveraging its expertise and capacity for efficient and effective distribution.

In summary, the CBN’s fertilizer donation represents a strategic effort to support domestic agricultural production and stabilize prices, while reaffirming its commitment to its core mandate of ensuring monetary and price stability.

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