In order to checkmate food inflation and combat the adverse effects of the flooding across the country, the Central Bank of Nigeria (CBN) has said it would release some strategic grain reserves.
Godwin Emefiele, the CBN Governor stated this during the 288th meeting of the Monetary Policy Committee (MPC) held in Abuja yesterday.
Emefiele said that Nigerian farmers have lost a lot to the floods.
He also noted that Nigeria should brace up for higher food inflation in the months to come.
“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, and food prices and other agricultural products would go up.
“From our side at the CBN and the Federal Government, we have our strategic reserve, particularly for rice and for grains like maize, which we will use to moderate prices.”
According to the CBN Governor, the strategic reserve had been kept by the apex bank for the previous three years.
He added that the CBN would also support farming during the dry season. He said:
“Since the flooding is beginning to recede, we will aggressively go into the dry season program.
"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.”