Editorial: CBN should stop selling fertilizers

 

Our attention has been drawn to the Central Bank of Nigeria (CBN) officials meddling into selling fertilizers by themselves. This is unconstitutional, and outrightly off its mandate monetary policy.

Recently the agro inputs stakeholders had vehemently complained about the activities of the apex bank officials that are taking advantage of their office to be selling fertilizers which is totally outside its monetary policy mandate.

There were reports of direct sales of fertilizers in programs like Anchor Borrowers of the Federal Government which they complained eroded away the business gains the agro dealers and farmers would have made.

It is a noted constitutional fact that CBN can support Agricultural stakeholders in agro input of fertilizers on how they can easily sell their products to end users, but not by direct selling involvement.

Do we need to remind the CBN its primary mandate which includes:

* Maintain price stability

* Issue legal tender

* Manage monetary policy

* Promote financial system stability

Ditto, selling fertilizer by itself is out of it because it is a commercial/agricultural distribution activity which falls outside the CBN’s core functions.

Also, we may need to mention that  CBN is not a trading or supply-chain agency, therefore the directly selling fertilizers would conflict with its statutory role.

All these are pointers to the fact that if the nation's apex bank becomes a fertilizer seller, then it is a deliberate act to edge out private sector distributors, and also to create unfair competition with other inconveniences the bank may be bringing upon itself like logistics management.

It will be better for CBN to maintain the status quo of supporting  agriculture indirectly through financing schemes like Anchor Borrowers’ Programme and other Intervention funds for agribusiness.

This we believe will allow farmers' access to all inputs (including fertilizers without the CBN becoming a seller itself.This also will encourage economic principles of division of labour and professional specialization.