Nigeria’s central bank supplies 2.15 million bags of fertilizer to agriculture ministry

The Central Bank of Nigeria announced on Wednesday that it has given 2.15 million bags of fertilizer, which are worth over 100 billion naira ($62.2mn), to the Ministry of Agriculture and Food Security. The bank’s governor, Olayemi Cardoso, said the move is designed to tackle food price inflation and increase the country’s food production capacities.

Local media quoted Mr. Cardoso as saying that “Food prices are a crucial component of inflation, especially considering that a substantial portion of household expenditure in Nigeria is allocated to food and non-alcoholic beverages. This reinforces the critical need to address food inflation as a pivotal aspect of managing overall headline inflation.”

Nigeria’s agriculture minister, Abubakar Kyari, welcomed the decision, saying that he will ensure the fertilizer is promptly distributed to the country’s farmers. The minister of budget and economic planning, Atiku Bagudu, also endorsed the initiative, saying it will go a long way towards ensuring price stability.

Nigeria is currently experiencing its worst cost of living crisis in decades. A weakening of the naira, combined with a shortage of domestic food production, has caused food prices to soar. Data from the country’s National Bureau of Statistics showed that in January the annual food inflation rate was 35.41%, 11.9% higher than it was in January 2023.