Flooding: CBN to deploy strategic grains reserve to check food inflation

The Governor of the Central Bank of Nigeria (CBN) Mr Godwin Emefiele, says the apex bank will fall back on its strategic grains reserve to check food inflation.

Speaking to newsmen in Abuja on Tuesday, Emefiele said the idea was to moderate food prices that could be occasioned by recent flooding across the country.

“The flooding of this year happens to be the worst in the last five years in Nigeria. 32 out of the 36 states of the country were affected adversely by the floods.

“This meant that farmers lost their crops, prices of food and other agricultural produce will go up.

“From our side at the CBN and the Federal Government, we have our own strategic reserve, particularly for rice and for grains like maize, which we will use to moderate prices,” he said.

He said the apex bank had been maintaining the strategic reserve for the past three years, adding that it was yielding results.

He said the CBN would also support dry season farming to further check food inflation.

“Since the flooding is beginning to recede, we will aggressively go into dry season programme.

“This will make sure that the impact of the rising food prices does not linger for too long, so that we can have control of prices of agricultural produce and other consumer goods,” he said.