Early Procurement Saves Nigeria ₦61.58bn As Global Fertiliser Prices Soar

Nigeria has secured adequate fertiliser supplies for the 2026 planting season and saved an estimated ₦61.58 billion by locking in purchases before fresh disruptions in the global fertiliser market triggered a sharp rise in prices, the Federal Government has disclosed.

The government said the strategic procurement, carried out through the Presidential Fertiliser Initiative (PFI), has protected the country from the supply shortages and escalating costs currently confronting several African nations amid renewed disruptions to global supply chains and key international shipping routes.

A statement issued on Thursday by the Director of Portfolio at PFI, Mr. Tajudeen Datti Ahmed, said PFI NPK Limited, the Ministry of Finance Incorporated’s (MOFI) implementation vehicle for the initiative, moved early to secure critical raw materials before recent price increases hit the international market.

According to procurement and shipment records for the first quarter of 2026, the company secured nine vessels carrying a combined 407,304 metric tonnes of fertiliser raw materials. Together with opening stock, the total volume available for fertiliser production stood at 534,219 metric tonnes.

The company disclosed that all Letters of Credit linked to the shipments had been fully established or settled, ensuring uninterrupted supply and shielding the country from the effects of ongoing global market volatility.

Data released by the firm showed that more than 323,109 metric tonnes of raw materials equivalent to about 6.5 million bags of 50kg fertiliser had been released to registered blending plants across the country as of mid-April 2026. Of that quantity, they said, approximately 198,264 metric tonnes, representing about four million bags, had already been distributed ahead of the peak planting season.

PFI NPK’s figures indicate that Nigeria’s early procurement programme generated savings of approximately $43.99 million, equivalent to ₦61.58 billion, by locking in lower prices before global market disruptions pushed costs upward.

The company reported that Granular Ammonium Sulphate (GAS) was secured at $228 per metric tonne compared with the prevailing market price of $343 per tonne. Diammonium Phosphate (DAP) was purchased at $775 per tonne against a current market price of $950, while Muriate of Potash (MOP) was obtained at $400 per tonne compared with the prevailing price of $430 per tonne.

Speaking on the achievement, Director of PFI NPK Limited, Dr. Armstrong Ume Takang, said the decision to procure early was aimed at insulating Nigerian farmers from external market shocks and ensuring stable fertiliser availability.

“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,” Takang said.

He added that the intervention was designed to guarantee farmers access to fertiliser at affordable prices, thereby supporting agricultural productivity and strengthening national food security.

Mr. Datti Ahmed in his statement statement that PFI NPK operates a centralised procurement and distribution model that supplies raw materials to 94 blending plants registered under the Fertiliser Producers and Suppliers Association of Nigeria (FEPSAN). He explained that the company imports raw materials rather than finished fertiliser products, enabling domestic production and supporting local value addition.

While lauding that the organisation supplied 648,000 metric tonnes of raw materials in 2025 and is targeting a scale-up to 1.52 million metric tonnes in 2026, the director added that its operations are subject to oversight by collateral management agents and regulatory supervision from agencies.

He said as farmers prepare for the 2026 wet season, industry stakeholders believe the availability of fertiliser inputs and relative price stability could play a significant role in boosting crop production and cushioning Nigeria’s food supply chain from global market uncertainties.

Ahmed further disclosed plans to strengthen long-term supply security through government-to-government partnerships with international suppliers and the deployment of a digital enterprise management system to improve visibility across procurement, inventory management and nationwide distribution