To check the ever-rising prices of foodstuff, the Central Bank of Nigeria (CBN) has called for Deposits money Banks (DMB) to augment lending and borrowing to the agricultural sector.
This was disclosed in a Communiqué reached at the end of the bank’s 262nd Monetary Policy Committee (MPC) meeting held earlier in the week.
The Communiqué disclosed that monthly inflation on food items increased from 1.33 per cent in May to 1.57 per cent in June 2018, constituting a 0.24 per cent increase.
“In addition, as a way of encouraging commercial banks to increase lending to the manufacturing and agriculture sectors, a differentiated dynamic cash reserves requirement (CRR) regime would be implemented,” it said.
It explained that long-term credit at 9 per cent, with a minimum tenor of seven years and two years moratorium will help in the provision of employment opportunities in the country.
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