The Central Bank of Nigeria (CBN) said it has concluded arrangement with 24 Nigerian banks to raise N200 billion funds as part of efforts to support agricultural sector and to ensure availability of food in the country.

At the end of the monthly bankers' committee meeting with chief executives officers of banks led by the CBN governor, Charles Soludo in Lagos, the committee agreed to raise N200 billion to support agricultural sector.

Four banks executives, the managing directors of Access Bank Aig-Imokuede, Skye Bank Akinsola Akinfe-hinwa, Diamond Bank Emeka Onwuka and CBN's acting director, Banking supervis-ion, Dominic Eke spoke on major decisions arrived at the breakfast meeting.

Speaking on the N200 billion fund, CBN acting director, banking supervision, Dominic Eke, said the apex bank intends to raise the fund through the banks within the next two weeks, adding that the fund would be used for commercial farming and that some banks would be selected through the supervision of CBN to disburse the fund.

He said the fund is a specific fund to ensure food securities in the country.

The bond, according to Dominic Eke, acting director of Banking Supervision at the CBN who briefed journalists after the meeting, the medium term five-year bond issue may open in a fortnight.

Eke recalled that the global food crisis predates the economic crisis, adding that the need for a special bond for the agric sector is hinged on the premise that food constitute a major plank of Nigeria's consumer price index used in computing inflation.

Bringing down the price of food, he stressed would have several positive multiplier effects on inflation and the economy as a whole, in addition to ensure that the nation is self sustaining in agriculture.

Explaining further, Akinsola Akinfemiwa, managing director of Skye Bank who led the team, noted that the agric bond is different from the Agricultural Credit Guaranty Scheme (ACGS), which was set up by the banks.

Both, he stressed, are slightly different.

Other issues discussed at the meeting, according to other members of the panel including Aigboje Aig-Imoukhuede and Emeka Onwuka chief executives of

Access and Diamond Banks respectively, included the current anti-money laundering war and the need for banks to ensure full disclosure in their financials. Also on the front burner at the over four-hour meeting was the review and adoption of the uniform year end for banks, which was earlier put aside after an earlier agreement by the bank chiefs.