CBN Clarifies Alleged N100bn Fertiliser Donation to the Ministry of Agriculture to End Food Scarcity

• The Central Bank of Nigeria has denied restarting intervention schemes in the agricultural sector
• The bank stated that the recent donation of 2.15 million bags of fertilisers to the Ministry of Agriculture was from a previous stock
• The bank said it remains focused on monetary policy directives and has not restarted any intervention schemes

Legit.ng’s Pascal Oparada has reported on tech, energy, stocks, investment and the economy for over a decade.

The Central Bank of Nigeria has disclosed that the 2.15 million bags of fertilisers donated to the Ministry of Agriculture and Food Security were from the old stock of a programme initiated by the Buhari Administration, not a new intervention effort.

The bank disclosed this in a circular posted on its website on Saturday, March 16, 2024, saying that the donation of blended fertilisers boosted food security in Nigeria as it prefers to distribute them rather than let them go to waste.

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Fertilisers were from old stock

The apex bank revealed that it is using the remaining fertiliser stock from the previous administration to reduce food scarcity in Nigeria.

It reiterated that its primary function is to oversee monetary policy, denying restarting intervention programmes.

CBN said:

“The Central Bank of Nigeria has not initiated any new intervention but has instead donated fertilisers from the remnants of its stock, which were blended under its previous interventions in the agricultural sector.

“This decision aims to support domestic agricultural production rather than allowing the fertilisers to remain unused and go to waste.

“As stated by the Governor of the Central Bank of Nigeria on several occasions, the CBN is realigning its focus towards its core mandate of ensuring monetary and price stability, thus stopping its direct involvement in development finance interventions.

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“The CBN will, however, support relevant organisations that possess the expertise and capacity to intervene directly,” the statement reads.

CBN ends intervention schemes

Reports emerged recently that the CBN had restarted intervention schemes in the agricultural sector following food scarcity in Nigeria and escalating inflation.

Many reported that the bank restarted the scheme after ending the controversial Anchor Borrowers Programme (ABP), which gulped trillions of naira.

The apex bank had said it is committed to recovering all the loans disbursed under the ABP, with President Bola Tinubu issuing an ultimatum to security agencies to go after defaulters of the ABP.

CBN shares important update to farmers

Legit.ng reported that to reduce the nation's high inflation rate, the Central Bank of Nigeria has stepped up efforts to increase food production.

On Wednesday, March 13, the apex bank announced it had spent N100 billion buying 2.5 million bags of fertiliser for farmers.

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At the Federal Ministry of Agriculture and Food Security (FMAFS) headquarters in Abuja, CBN Governor Olayemi Cardoso gave the 2.15 million bags of fertiliser to the agriculture and food security minister, Abubakar Kyari.

Source: Legit.ng