CBN clarifies position on 2.15m fertilizer bags donation, reiterates monetary policy role
By Sodiq Adelakun
The Central Bank of Nigeria in a circular in Saturday has clarified that its donation of 2.15 million bags of fertilizers to the Ministry of Agriculture and Food Security is not a new intervention effort, but rather a use of leftover fertilizers from a previous program.
The CBN stated that its primary purpose is to oversee monetary policy, and it has no plans to engage in development financing through intervention programs.
It stated that the donation of the blended fertilizers aimed to bolster food security within the country, preferring to distribute them rather than let them go to waste.
The CBN also reiterated its prior stance that its main function is to oversee monetary policy, and it explicitly denies participation in development financing via intervention programmes.
“The Central Bank of Nigeria has not initiated any new intervention but has rather donated fertilisers from the remnants of its stock, which were blended under its previous interventions in the agricultural sector.
“This decision is aimed at supporting domestic agricultural production rather than allowing the fertilisers to remain unused and go to waste.
“We anticipate that the fertilisers will ultimately support our overall objective of price stability, which is being challenged by rising food inflation.
“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.
“The CBN will, however, support relevant organizations that possess the expertise and capacity to intervene directly,” the statement read.
Earlier, it was reported that the Central Bank of Nigeria (CBN) supported the agricultural sector by distributing over 2 million bags of fertilizers, valued at N100 billion, via the Federal Ministry of Agriculture and Food Security to farmers.
In response to concerns that its donation of fertilizers could be interpreted as a shift in the Central Bank of Nigeria’s (CBN) approach to economic interventions, the bank issued a circular that reaffirmed its commitment to monetary policy.
The circular clarified that the donation of fertilizers was made with the intent of preventing the materials from going to waste, and was not an indication of a change in the CBN’s position on intervention programs.
“The Central Bank of Nigeria has reiterated its focus on monetary policy and has maintained a hands-off approach to intervention programs in the real sectors of the economy,” the circular stated. “
