The Federal Government has expressed deep concern over the repercussions of the naira redesign policy implemented by the Central Bank of Nigeria (CBN) from December 2022 until February this year.
The impact of the controversial naira redesign and its subsequent effects on farmers’ financial stability were highlighted during a budget defence session led by the Minister of Agriculture and Food Security, Abubakar Kyari, before the National Assembly Joint Committee on Agriculture on Monday.
The agric minister during the budget defence underscored that the primary focus of the 2024 budgetary proposals for the sector aims at attaining food security, emphasising that several factors, including insecurity and the ill-fated naira redesign policy of about a year ago significantly impeded farmers and posed a severe threat to the nation’s food security.
“The cash crunch resulting from the naira redesign forced many farmers to sell their produce at remarkably low prices for survival, as buyers struggled to access cash for purchasing,” the minister disclosed.
The policy, coinciding with the harvest season, resulted in widespread financial devastation among farmers, leaving them financially destitute, he said.
This revelation coincided with growing distress over hunger and famine-induced deaths among the impoverished in rural areas.
Hon. Dahiru Ismaila Haruna from Toro Federal Constituency in Bauchi State and Hon. Ademorin Kuye from Shomolu Federal Constituency, Lagos State, raised alarm about the urgent need for the Federal Government to address the escalating hunger crisis primarily caused by insecurity.
Hon. Haruna painted a dire picture of daily deaths due to hunger and emphasised the urgency of stockpiling silos to avert total famine, citing an influx of individuals from neighbouring countries desperate for sustenance.
Hon. Ademorin, on his part, raised concerns about the alleged concessioning of silos built by the previous administration, casting doubt on their efficiency.
In response, the minister assured lawmakers that all issues raised would be decisively addressed in the 2024 fiscal year. He reiterated that food security remains a paramount focus within President Bola Tinubu’s administration.
Kyari outlined ongoing action plans to ensure food security, including securing farmlands, certifying planting materials for dry season farming, transparent distribution of fertilisers and agro pesticides, and accelerating the National Agricultural Development Fund’s operations.
For the 2024 fiscal year, the ministry earmarked a total of N362.940 billion for the sector, with N124.1 billion allocated to the ministry, divided into N10.6 billion for personnel costs, N1.34 billion for overhead, and N112.497 billion for capital expenditure.
