Nigeria’s agricultural sector has undergone a remarkable transformation in recent years, particularly in the fertiliser industry, which has witnessed an exponential increase in production capacity. According to Sadiq Kassim, President of the Fertiliser Producers and Suppliers Association of Nigeria (FEPSAN) and Director of Corporate Affairs at Tropical General Investment (TGI) Group, the country’s fertiliser production capacity has surged by over 300% since 2017, positioning Nigeria as a key player in Africa’s agricultural development.

This dramatic growth is largely attributed to the Presidential Fertiliser Initiative (PFI), a program introduced to address the country’s long-standing challenges in agricultural inputs and foster self-reliance in fertiliser production. Speaking at the PFI-NPK Stakeholders Roundtable in Abuja, Kassim highlighted Nigeria’s journey from being a net importer of fertilisers to becoming one of the continent’s leading producers.

The Presidential Fertiliser Initiative (PFI)

The PFI, launched in 2016, was designed to revitalize Nigeria’s moribund fertiliser blending industry by encouraging public-private partnerships (PPPs) and boosting local production. Before the initiative, the country had only five operational blending plants, which were insufficient to meet the growing demand for fertilisers across Nigeria’s vast agricultural landscape.

Fast forward to 2024, Nigeria boasts over 90 blending plants operating at nearly 70% capacity. In addition to the blending plants, three major urea production facilities have been established, significantly bolstering the country’s fertiliser production capacity. Companies like Dangote and Indorama, both of which are significant players in Nigeria’s industrial scene, have also ramped up their urea output, positioning Nigeria as a major exporter of urea across West Africa and beyond.

Key Drivers of Growth in Fertiliser Production

One of the primary drivers behind Nigeria’s surge in fertiliser production is the strong partnership between the government and private sector players. Kassim credited much of the success to the Nigeria Sovereign Investment Authority (NSIA), which played a critical role in financing and managing the PFI. By creating an enabling environment for investment and innovation, the NSIA has facilitated significant growth in Nigeria’s fertiliser industry.

Additionally, President Bola Ahmed Tinubu’s administration has shown unwavering support for the fertiliser sector. The government’s commitment to agricultural development, through policies aimed at boosting local production, has been instrumental in Nigeria’s move toward self-sufficiency in fertiliser production. Kassim praised the government’s efforts to promote food security by ensuring that farmers have access to affordable and high-quality fertilisers.

Impact on Nigeria’s Agricultural Sector

The increased availability of fertilisers has had a profound impact on Nigeria’s agricultural sector, which employs a significant portion of the country’s population. Fertilisers are essential for improving crop yields, especially in a country like Nigeria where smallholder farmers constitute the bulk of food producers.

With the rise in fertiliser production, Nigerian farmers now have greater access to fertilisers at affordable prices, enabling them to increase their productivity. According to the Nigerian Federal Ministry of Agriculture, the use of fertilisers has boosted crop yields in key staples such as maize, rice, cassava, and yams. As a result, Nigeria has reduced its dependency on food imports and improved its domestic food supply, contributing to national food security.

Kassim noted that the fertiliser industry’s growth has not only benefitted farmers but also the wider economy. The establishment of new blending plants has created thousands of jobs, particularly in rural areas, and has contributed to the development of local industries.

Challenges Facing the Fertiliser Industry

Despite the impressive growth in fertiliser production, the industry still faces several challenges. High production costs, logistical inefficiencies, and foreign exchange volatility are among the most pressing issues. The cost of raw materials, such as nitrogen, phosphorus, and potassium (NPK), has fluctuated in recent years, placing additional financial strain on blending plants.

Nigeria’s foreign exchange challenges have also made it difficult for companies to import essential raw materials needed for fertiliser production. In particular, the depreciation of the naira has increased the cost of imports, limiting the industry’s ability to expand at the desired pace.

Logistical challenges further complicate the distribution of fertilisers across Nigeria’s expansive geography. Poor infrastructure, including roads and transportation networks, often results in delays and increased costs in delivering fertilisers to remote farming communities.

Strategic Initiatives for Growth and Innovation

Kassim remains optimistic about the future of Nigeria’s fertiliser industry, viewing these challenges as opportunities for growth and innovation. To address the issue of high production costs, Kassim has proposed expanding Nigeria’s raw materials base to include micronutrients, which are essential for producing more efficient and nutrient-dense fertilisers. By diversifying the raw materials used in fertiliser production, Nigeria can reduce its reliance on imported inputs and lower overall costs.

Kassim also suggested the establishment of a fertiliser institute to promote research and development in the sector. Such an institution would play a vital role in improving the quality of fertilisers produced in Nigeria and driving innovation in agricultural inputs. The fertiliser institute would also serve as a hub for training and capacity-building, equipping local industry players with the knowledge and skills necessary to compete on a global scale.

Additionally, Kassim emphasized the importance of formalising NPK trade within the Economic Community of West African States (ECOWAS) region. By fostering closer trade relations with neighbouring countries, Nigeria could tap into new markets and position itself as a leading exporter of fertilisers within the region.

The Nigerian government is already making strides in this direction by working to harmonize fertiliser standards across ECOWAS member states. This would not only facilitate cross-border trade but also ensure that farmers throughout the region have access to high-quality fertilisers.

Nigeria’s Role in Global Food Security

As the global population continues to grow, the demand for food is expected to rise exponentially, making the role of fertilisers in boosting agricultural productivity more critical than ever. Nigeria’s fertiliser industry is well-positioned to play a key role in addressing global food security challenges.

In recent years, Nigeria has ramped up its fertiliser exports to several African countries, including Ghana, Côte d’Ivoire, and Mali. This has solidified Nigeria’s position as a regional leader in fertiliser production and distribution. Moreover, Nigeria’s fertiliser sector is increasingly being viewed as a model for other African countries seeking to reduce their reliance on imports and boost local production.

By leveraging its natural resources and industrial capacity, Nigeria has the potential to become a major player in the global fertiliser market. With continued investment in infrastructure, research, and development, the country could significantly increase its fertiliser exports, contributing to agricultural development not just in Africa but around the world.

Looking Ahead

Kassim expressed confidence in the Nigerian fertiliser industry’s ability to meet both domestic and international demand for fertilisers. He noted that with the right policies and continued collaboration between the public and private sectors, Nigeria could achieve its goal of becoming a net exporter of fertilisers within the next few years.

“Fertiliser is a key driver of agricultural growth, and by increasing our production capacity, we are not only boosting our economy but also ensuring that we can feed our growing population,” Kassim said.

As Nigeria continues to expand its fertiliser production capacity, the country is set to play a crucial role in the global agricultural landscape. The progress made in recent years is a testament to the power of public-private partnerships and the importance of long-term strategic planning in achieving industrial growth.

In conclusion, Nigeria’s fertiliser industry is on a path toward sustained growth and success. With the continued support of the government and industry stakeholders, the country is well-positioned to become a global leader in fertiliser production, driving agricultural development both at home and abroad.

photo source: Google

By: Montel Kamau

Serrari Financial Analyst

18th September, 2024