Nigeria has averted a major fertiliser price shock that has affected several African countries, following an early procurement strategy adopted by the Federal Government through the PFI NPK Limited, the implementation vehicle of the Presidential Fertiliser Initiative, PFI.
PFI NPK, a wholly owned subsidiary of the Ministry of Finance Incorporated, MOFI, secured the country’s fertiliser requirements for the 2026 wet season months before recent global supply chain disruptions and rising freight costs emerged.
The proactive approach not only guaranteed adequate supply, but also generated substantial savings, highlighting the benefits of forward planning amid increasing volatility in the global fertiliser market.
Official records show that during the first quarter of 2026, PFI NPK procured nine vessels carrying 407,304 metric tonnes of raw materials.
Combined with opening stock, total available raw materials for the 2026 NPK production cycle rose to 534,219 metric tonnes.
All Letters of Credit linked to the procurement were fully established or settled, ensuring financial certainty across the supply chain before market conditions worsened.
Subsequent disruptions in key international shipping routes triggered sharp increases in the prices of major fertiliser inputs, including Granular Ammonium Sulphate, GAS; Diammonium Phosphate, DAP and Muriate of Potash, MOP; leaving several African countries facing supply shortages and rising costs.
Nigeria, however, was shielded from the impact. PFI NPK secured GAS at $228 per metric tonne against the current market price of $343, DAP at $775 compared to $950, and MOP at $400 against $430.
The price differentials translated into savings of about $43.99 million, equivalent to approximately ₦61.58 billion, compared to prevailing global market prices.
The Director of PFI NPK Limited, Dr. Armstrong Ume Takang, the company deliberately moved early to secure supplies, lock in prices and establish the necessary financial instruments, thereby protecting Nigeria from current disruptions in global fertiliser markets.
The strategy has already yielded results, with more than 323,109 metric tonnes of fertiliser raw materials released to registered blending plants nationwide by mid-April 2026, while over 198,264 metric tonnes had been purchased by farmers and distributors ahead of peak planting season.
PFI NPK operates a centralised procurement model that supplies raw materials to 94 FEPSAN-registered blending plants.
The initiative has expanded Nigeria’s blending capacity from four plants in 2016 to over 90 and facilitated the delivery of more than 128 million bags of fertiliser to farmers across the country.
Looking ahead, the company plans to deepen government-to-government partnerships with international suppliers and deploy a digital enterprise system for real-time monitoring of procurement, inventory and distribution, aimed at strengthening the long-term resilience of Nigeria’s agricultural supply chain.
Source: Agronigeria