The Federal Government has saved an estimated ₦61.58 billion through early fertiliser procurement, cushioning Nigerian farmers from the impact of a growing global supply crisis ahead of the 2026 wet planting season.
The intervention comes at a time when several countries, particularly across Africa, are facing rising fertiliser costs and supply shortages linked to global disruptions in shipping routes and increased freight expenses.
Key raw materials used in fertiliser production—including Granular Ammonium Sulphate (GAS), Diammonium Phosphate (DAP), and Muriate of Potash (MOP)—have recorded significant price increases in international markets, creating uncertainty for agricultural production in many developing economies.
However, Nigerian authorities say the country has largely avoided the immediate impact due to a strategic early procurement initiative executed months before the escalation of global pressures.
According to official records, the procurement was carried out through PFI NPK Limited, the implementation arm of the Presidential Fertiliser Initiative under the Ministry of Finance Incorporated (MOFI). The agency secured nine vessels carrying a combined 407,304 metric tonnes of raw materials in the first quarter of 2026.
With additional opening stock, total available raw materials now stand at approximately 534,219 metric tonnes, providing a stable base for domestic fertiliser production.
Distribution efforts have also progressed significantly. As of mid-April 2026, over 323,000 metric tonnes—equivalent to about 6.5 million 50kg bags—had been released to fertiliser blending plants nationwide. Of this, more than 198,000 metric tonnes had already been taken up, indicating active distribution ahead of peak farming season.
Officials said the early procurement strategy enabled the government to secure favourable pricing before global market increases. GAS was reportedly purchased at $228 per metric tonne compared to a current market rate of $343, while DAP was secured at $775 per tonne against $950. MOP was procured at $400 per tonne, below the prevailing $430 market price.
These cost advantages translated into estimated savings of $43.99 million, equivalent to about ₦61.58 billion.
PFI NPK Limited operates a centralised procurement and distribution model that supplies raw materials to over 90 blending plants across Nigeria, helping to boost local production capacity and reduce reliance on imported finished fertiliser.
The initiative is supported by regulatory oversight from agencies including NAFDAC and the Standards Organisation of Nigeria (SON), alongside supply chain monitoring systems to ensure quality control and accountability.
For the 2026 season, fertiliser supply is expected to increase significantly, with projections rising from 648,000 metric tonnes in 2025 to over 1.5 million metric tonnes.
Officials say the early procurement strategy provides critical assurance to farmers, reducing the risk of supply disruptions and price shocks as Nigeria prepares for the peak planting season.
