Nigeria Secures Fertiliser Supplies Amid Global Tensions

PFI NPK Limited, a part of the Ministry of Finance Incorporated, says Nigeria has enough fertiliser for the 2026 wet farming season.

In a statement on Friday, the company explained that Nigeria avoided potential shortages from global supply chain issues caused by renewed tensions in the Middle East, especially the ongoing conflict involving Iran, Israel, and the United States.

The company said its early procurement strategy helped it secure important fertiliser raw materials months before geopolitical tensions led to price increases and supply problems.

PFI NPK estimates it saved N61.58 billion by locking in supplies before international market prices went up.

Meanwhile, many African countries are facing rising fertiliser costs and supply issues due to disruptions in major international shipping routes. This has raised freight charges and prices for essential fertiliser inputs.

According to records for the first quarter of 2026, PFI NPK secured nine vessels carrying a total of 407,304 metric tonnes of fertiliser raw materials. With the existing inventory, the company says it has made 534,219 metric tonnes of raw materials available for domestic NPK fertiliser production.

The records show that all related Letters of Credit have been fully established or settled, ensuring that the supply remains uninterrupted.

On Thursday, President Bola Tinubu announced that Nigeria had secured over 449,000 metric tonnes of fertiliser inputs, which is about nine million bags. This is to help agricultural production and improve food security across the country.

Nigeria has long struggled with fertiliser procurement due to rising raw material costs, supply chain problems, and product diversion. These issues often limit fertiliser access for smallholder farmers, who play a big role in domestic food production.

To tackle this, the former President Muhammadu Buhari's government formed strategic partnerships with Morocco in 2016 and Russia in 2019 under the Presidential Fertiliser Initiative, which was then managed by the Nigeria Sovereign Investment Authority.

The initiative started with a Memorandum of Understanding to revive inactive fertiliser blending plants and facilitate importing discounted phosphate from Morocco. In 2021, the partnership grew into a $1.3 billion basic chemicals platform to support local ammonia and fertiliser production.

This arrangement improved raw material supply to blending plants, increased domestic production capacity, and lowered fertiliser costs. But challenges like diversion and sabotage in parts of the value chain still restricted farmers' access.

Experts say the lack of fertiliser availability is linked to lower agricultural yields, rising food prices, and worsening food insecurity.

Nigeria’s food system has faced more pressure in recent years due to ongoing flooding, insecurity in farming areas, rising transport costs after the fuel subsidy removal, and other structural issues.

The United Nations World Food Programme (WFP) predicts that about 35 million Nigerians will face acute food insecurity during the 2026 lean season.

By mid-April, PFI NPK reported that over 323,109 metric tonnes of raw materials, around 6.5 million 50kg bags of fertiliser, had been released to registered blending plants across the country.

Of this amount, about 198,264 metric tonnes, nearly four million 50kg bags, had already been taken by blending plants, showing active distribution before peak planting time.

The company supplies raw materials to 94 blending plants registered with the Fertiliser Producers and Suppliers Association of Nigeria (FEPSAN).

Unlike those who import finished fertiliser, PFI NPK uses a centralised procurement model that imports raw materials for local blending. This system promotes local manufacturing and adds value.

The company said the savings came from securing supplies before the recent increase in international fertiliser prices.

Financial records show that this procurement strategy saved around $43.99 million, which is about N61.58 billion, compared to current spot market prices.

Details show that Granular Ammonium Sulphate (GAS) was bought at $228 per metric tonne, much lower than the current price of $343 per tonne.

Diammonium Phosphate (DAP) was secured at $775 per tonne, while the current market rate is $950. Muriate of Potash (MOP) was bought at $400 per tonne, compared to the prevailing price of $430.

Armstrong Ume Takang, the Director of PFI NPK Limited, said the company chose to act early to protect Nigeria’s agricultural sector.

“We took a deliberate decision to move early, well ahead of market pressures, by securing supply, locking in pricing, and putting the necessary financial instruments in place. That foresight is what has ensured that Nigeria is not exposed to the disruptions currently affecting global fertiliser markets,” he explained.

Mr Takang added that fertiliser availability and affordability are key to agricultural productivity and food security, especially as rising input costs threaten farming in many countries.

“What matters is that the farmer can access fertiliser when needed and at a price that does not undermine production. By stabilising supply and managing cost exposure at the procurement stage, we are supporting that outcome at scale,” he said.

PFI NPK delivered 648,000 metric tonnes of raw materials in 2025 and is aiming for a big increase to 1.52 million metric tonnes in 2026.

The company noted that its operations are backed by a governance framework that includes independent warehouse oversight, standard operating procedures with FEPSAN, and compliance with the National Agency for Food and Drug Administration and Control (NAFDAC) and the Standards Organisation of Nigeria (SON).

The Office of the National Security Adviser (ONSA) is also supporting the programme’s operations across the country.

Looking ahead, PFI NPK is pursuing government-to-government partnerships with international suppliers and developing a digital system for real-time monitoring of procurement, inventory, and distribution activities.

These steps aim to strengthen long-term supply security and ensure farmers have access to fertiliser despite global market uncertainties.