CBN’s Naira Redesign Rendered Farmers Bankrupt – FG Reveals

The Federal Government disclosed on Monday that the Central Bank of Nigeria’s decision to redesign the naira, implemented from December 15, 2022, until early February of the current year, left farmers financially devastated.

This unfortunate situation persisted until the Supreme Court ruled against the policy.

During a budget defence session before the National Assembly Joint Committee on Agriculture, the Minister of Agriculture and Food Security, Senator Abubakar Kyari, highlighted the dire consequences of both the contentious naira redesign and the widespread hunger stemming from insecurity.

Federal lawmakers also voiced their concern, emphasizing that the prevailing hunger and famine were leading to the tragic deaths of impoverished individuals in rural areas.

Addressing the joint committee chaired by Senator Saliu Mustapha (APC Kwara Central), Senator Abubakar Kyari presented the 2024 budgetary proposals for the agriculture sector, emphasizing the need to achieve food security in the country.

The minister attributed the financial hardships faced by farmers and the significant threat to food security to various factors, including insecurity and the controversial naira redesign policy implemented approximately a year ago.

“The cash crunch caused by the naira re-design 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 harvest season, ended rendering the farmers empty financially,” he said.

During the session, Dahiru Haruna (Toro Federal Constituency, Bauchi State) and Ademorin Kuye (Shomolu Federal Constituency, Lagos State) urgently called on the Federal Government to address the pervasive hunger crisis in the country, primarily stemming from insecurity.

Haruna, in his remarks, said, “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 daily while 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 Aftrica, are trooping in to mop up the little food, signalling total famine in the area if not urgently addressed by stockpiling the silos “.

However, during his remarks, Ademorin dismissed the significance of the silos, questioning the Minister about allegations that many of the silos constructed during President Jonathan’s administration were purportedly handed over as concessions for N20 million each.

In response, the minister assured the lawmakers that all raised concerns would be comprehensively addressed in the 2024 fiscal year. Senator Kyari emphasized that food security is the top priority among the eight-point agenda of President Bola Tinubu’s administration.

He further highlighted that the ministry has strategically repositioned itself to achieve the goals outlined in the agenda.

According to him, some of the action plans already being implemented to ensure food security in the country aside from securing the farmlands by security agencies are “certification of available planting materials for some food security crops in readiness for dry season farming.

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

“Fast-tract the take off 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 Basin Development Authorities and other flood plains in the country to guarantee all-year-round food production etc.”

In his earlier remarks, he informed the committee that the allocation for the agricultural sector in the 2024 fiscal year amounts to a total of N362.940 billion, with N124.1 billion designated for the Ministry.

Breaking down the N124.1 billion, he specified that N10.6 billion is allocated for personnel costs, N1.34 billion for overhead, and N112.497 billion for capital expenditure.