Naira redesign, insecurity forced farmers into bankruptcy — FG

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1 year ago

The Federal Government has said the naira redesign policy by the Central Bank of Nigeria (CBN) implemented between December 15, 2022, and February this year forced many farmers in the country into bankruptcy.

The redesigning of the naira was initiated by a former governor of the apex bank, Godwin Emefiele, and was being implemented nationwide until the Supreme Court stopped it through a ruling.

The Minister of Agriculture and Food Security, Senator Abubakar Kyari, stated this on Monday in Abuja when he appeared before the Joint Committee of the Senate and the House of Representatives on Agriculture to defend the ministry’s 2024 budget proposals.

He told the committee that the budget’s focus was to provide food security for the country, adding that insecurity and Emefiele’s cash policy had seriously affected food production in the last year.

He stated, “The cash crunch caused by the Naira redesign made most of the farmers sell their farm produce at giveaway prices for survival since buyers couldn’t access cash to buy the produce from them.

“The policy, which coincided with the harvest season, ended up rendering the farmers empty financially.”

As he addressed the committee, lawmakers expressed worry over increasing hunger and famine in parts of the country.

Hon Dahiru Haruna (Toro Federal Constituency, Bauchi State) and Hon Ademorin Kuye (Shomolu Federal Constituency, Lagos State), noted that the North-East subregion was worse-hit.

“Hon. Minister, being from the North-East, the picture I am about to paint shouldn’t be strange to you at all.

“The pathetic picture of people dying of hunger on a daily basis while the majority of those surviving, feed once a day.

“Making it worrisome is the fact that even people from neighbouring countries like Chad, Niger, Benin Republic and Central African Republic are trooping in to mop up the little food, signalling total famine in the area if not urgently addressed by stock-pilling the silos,” Haruna said.

On his part, Kuye informed the minister that most of the silos built by President Goodluck Jonathan’s administration were allegedly concessioned at N20 million each.

However, in his response, the minister assured the lawmakers that their worries would be addressed by the 2024 budget if successfully passed by the National Assembly, as food security remained tops on the 8-Point Agenda of President Bola Tinubu’s government.

He added, “Reviewing the mechanisms and processes for delivering fertilizers and agro pesticides input to farmers under a transparent and accountable regime.

“Fast-tract the takeoff and operations of the National Agricultural Development fund.

“Implement a joint action plan with the Federal Ministry of Water Resources to unlock the huge irrigation potentials of the River Basins Development Authorities and other flood plains in the country to guarantee all year-round food production etc.”

The budget for the agricultural sector this year is N362.940 billion. Out of the figure, the ministry has N124.1bn.

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