Early procurement shields Nigerian farmers from global fertiliser crisis, saves $43.99m – FG

By Mashe Umaru Gwamna

The Federal government has secured fertiliser supplies for the 2026 wet farming season and saved an estimated $43.99 million through strategic early procurement by PFI NPK Limited, insulating farmers from a global fertiliser supply crisis and rising input costs.

This was disclosed in a statement signed by the Executive Director, Portfolio, Mr. Tajudeen Datti Ahmed, who noted that global shipping disruptions and escalating prices of key fertiliser inputs Granular Ammonium Sulphate (GAS), Diammonium Phosphate (DAP), and Muriate of Potash (MOP) have created uncertainty across agricultural markets in Africa.

Despite the volatility, Nigeria was able to avert supply shocks through proactive planning.

The Director of the Presidential Fertiliser Initiative (PFI), Dr. Armstrong Ume Takang, said the intervention was designed to ensure farmers have timely access to affordable fertiliser.

“We moved early to secure supply and lock in pricing. What matters is that farmers can access fertiliser when needed and at prices that do not undermine production,” he said.

According to Takang, PFI NPK delivered 648,000 metric tonnes of raw materials in 2025 and is scaling up operations with a target of 1.52 million metric tonnes for 2026.

He explained that PFI NPK Limited, the Ministry of Finance Incorporated (MOFI) entity implementing the Presidential Fertiliser Initiative, secured supplies months before the current global disruptions.

Records for the first quarter of 2026 show that nine vessels carrying 407,304 metric tonnes of raw materials were secured, bringing total available stock, including opening balances, to 534,219 metric tonnes. All Letters of Credit have either been established or fully settled.

Distribution is already underway nationwide. By mid-April 2026, 323,109.24 metric tonnes, equivalent to about 6.5 million 50kg bags, had been released to 94 FEPSAN-registered blending plants across the country. More than 198,264 metric tonnes, or roughly four million bags, had already been off-taken, ensuring farmers receive fertiliser ahead of peak planting activities.

The early procurement strategy also generated significant cost savings. Granular Ammonium Sulphate was secured at $228 per metric tonne, compared to the current market price of $343. Diammonium Phosphate was purchased at $775 per metric tonne against the prevailing $950, while Muriate of Potash was acquired at $400 per metric tonne, below the current price of $430.

These price advantages translated into savings of approximately ₦61.58 billion, equivalent to $43.99 million.
Takang stressed that fertiliser availability and affordability remain critical to Nigeria’s agricultural productivity and food security.

“With global market conditions placing increasing pressure on input costs, ensuring consistent supply and price stability is essential to supporting agricultural production across the country,” he said.

He added that the impact of the intervention is ultimately measured at the farm level.

“By stabilising supply and managing cost exposure at the procurement stage, we are supporting agricultural productivity at scale and helping farmers maintain viable production costs,” he stated.

Looking ahead, PFI NPK is strengthening long-term supply security through government-to-government partnerships with international suppliers and plans to deploy a digital enterprise system that will provide real-time visibility across procurement, inventory management, and distribution operations.

Takang further explained that the company operates a centralised bulk procurement and distribution model, importing fertiliser raw materials and supplying them to 94 FEPSAN-registered blending plants nationwide.

He emphasised that the company does not import finished fertiliser, ensuring that all NPK fertiliser is blended locally, thereby promoting domestic manufacturing, value addition, and job creation.

The supply chain, he said, is governed by stringent oversight mechanisms. Independent collateral management agents monitor warehouse operations, while raw materials remain under PFI NPK control until sales and repayments are verified.

Standard operating procedures developed in collaboration with the Fertiliser Producers and Suppliers Association of Nigeria (FEPSAN) guide handling, storage, and distribution processes. Regulatory compliance is enforced by the National Agency for Food and Drug Administration and Control (NAFDAC) and the Standards Organisation of Nigeria (SON), while operations also receive support from the Office of the National Security Adviser (ONSA).

For farmers preparing for the 2026 wet season, Takang said the immediate benefit is certainty of supply.

“Raw materials are already in-country or in transit, blending plants are receiving inputs, and the risk of sudden price shocks linked to global market disruptions has been significantly reduced,” he said.

PFI NPK Limited is a wholly-owned subsidiary of the Ministry of Finance Incorporated (MOFI) and serves as the designated implementation vehicle for Nigeria’s Presidential Fertiliser Initiative, operating a centralised procurement and distribution system aimed at ensuring nationwide fertiliser availability and market stability.