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April 14, 2024

Investment in Agriculture Sector Will Drive Down Inflation – CBN

Mr. Olayemi Cardoso, Governor of the Central Bank of Nigeria (CBN), emphasized that investment in agriculture is crucial for increasing food production and reducing the current high inflation rate, which stands at 29.9%.

Speaking at a fertilizer handover ceremony at the Ministry of Agriculture and Food Security, Governor Cardoso stated:

“As you know, Honorable Minister, maintaining price stability is a core mandate of the Central Bank of Nigeria. Food prices are a significant component of inflation, especially considering the substantial portion of Nigerian household expenditure allocated to food and non-alcoholic beverages.

“Therefore, addressing food inflation is essential for managing overall inflation rates. While the CBN has implemented comprehensive measures to curb inflation, short-term inflationary pressures may persist, primarily driven by rising food prices.

“This is precisely why we are here today – to strengthen our collaboration with the Ministry of Agriculture to mitigate the surge in food prices.

“The CBN has shifted its focus towards its core mandate, transitioning away from direct quasi-fiscal interventions. We now prioritize leveraging conventional monetary policy tools for effective monetary policy execution. In this light, we aim to build stronger relationships with Ministries, Departments, and Agencies (MDAs) that have the mandate and expertise to undertake critical initiatives.

“Consequently, we are committed to enhancing our partnership with the Ministry of Agriculture. By supporting your efforts to improve food production and security, we can ultimately curb food inflation and achieve our shared goal of price stability.

“In pursuit of these goals, we are pleased to announce the allocation of 2.15 million bags of fertilizer, valued at over 100 billion naira, which we are humbly handing over to the Ministry of Agriculture and Food Security. This contribution from the CBN aims to boost food production capacity and promote price stabilization within the agricultural sector.”

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