NEMA: Why FG initiated grains mop-up scheme – CBN

The Federal Government came up with the scheme to mop up grains to avert food shortage as a result of massive exports of Nigerian grains by some foreign companies, the Central Bank of Nigeria (CBN) said yesterday.

The Governor of CBN, Godwin Emefiele, told the House of Representatives Committee on Emergency and Disaster Preparedness in Abuja that were it not for the scheme, which came up in 2016, the negative consequences could only be imagined.

The panel is investigating allegations of lack of public trust in the National Emergency Management Agency (NEMA) with special focus on billions of naira intervention funds to victims of insurgency in the victims in 16 states.

Emefiele, who was represented by the Director of Banking and Finance, Dipo Fatokun, said drastic action had to be taken in view of rising inflation and falling value of Nigeria’s currency, as well as the need to encourage local farmers.

Four companies were contacted to carry out the grains mop up, the CBN chief said, adding that it was an intervention scheme done for a particular purpose to salvage a dire situation.

He said loan was sought through the Debt Management Office (DMO) out of the N200 billion Commercial Agriculture Credit Scheme and not through an Infrastructure Euro bond as claimed in some quarters.

“These (four) companies were selected Northeast and flood because they were big ticket off-takers and known by grain farmers; that’s why they were invited to participate in the special programme for grains mop up.

“As to the status of the loan, the loan was given in December 2016 and fully paid up between October and November 2017.

“On source of funding, as stated by us at our first appearance at this public hearing, we are bankers to the government. We maintain government’s accounts and act on mandates received from government just as commercial banks act on mandates received from their customers,” he said.

The panel headed by the Deputy Chairman, Ali Isa (PDP, Gombe), adjourned the hearing to a yet-to-beannounced date.