CBN defends position on agriculture financing

The Central Bank of Nigeria (CBN), says it is directly involved in financing agriculture, infrastructure and Micro Small and Medium Enterprises (MSMEs) to ensure real growth in the economy.

Mr Isaac Okorafor, CBN’s Director, Corporate Communication, said this on the sidelines of the IMF/World Bank meetings taking place in Washington DC.

“There is nothing unusual about what the CBN is doing. We agree with the IMF that one of the core functions of the Central Bank in any country is to maintain price stability

“They said we should focus on inflation targeting, but that is just one bit of it, IMF will expect us to import food and not make arrangements to produce our own foods.

The CBN is funding farmers who will grow food, supply to our people and by doing so reduce the price of food in the market,’’ he said.

He said that food was responsible for about 50 per cent of the causes of price increase in Nigeria, saying, “so what we are doing is delivering on our core function which is ensuring that there is price stability’’.

“By giving easy credit to farmers who will produce food and bring down the price of food, we are delivering on price stability,’’ he said.

The CBN director said that the bank’s strategy was already yielding positive results and millions of jobs had already been created through the provision of credit to farmers and small scale enterprises.

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