Nigeria saves $44m in pre-emptive fertiliser hedge amid global supply shocks - FG

The Federal Government through the

Presidential Fertiliser Initiative (PFI NPK Limited) said it has shielded Nigeria’s agricultural sector from an impending input crisis, saving the country an estimated $43.99 million (approximately N61.58 billion) ahead of the 2026 wet season.

PFI NPK Limited, the wholly owned entity of the Ministry of Finance Incorporated (MOFI) and implementation vehicle for the Presidential Fertiliser Initiative, confirmed that the Federal Government secured its 2026 supply position months before the current market volatility.

The company in a press statement issued to journalists at the weekend said it locked in nine vessels carrying a combined 407,304.00 metric tonnes. This it said brings total raw materials to 534,219 MT, including the opening balance at the beginning of the 2026 cycle, available for NPK fertiliser production.

In his remarks, Armstrong Ume Takang, Director, PFI NPK Limited, said that the Federal Government’s early procurement strategy was designed to shield Nigeria from external shocks.

“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 by the Federal Government is what has ensured that Nigeria is not exposed to the disruptions currently affecting global fertiliser markets,” he said.

Takang emphasised that the Federal Government’s intervention ultimately rests at the farm level. For him, what matters is that the farmer can access fertiliser when needed and at a price that does not undermine production.

He explained that by stabilising supply and managing cost exposure at the procurement stage, the Federal Government is supporting food production at scale.

The company explained that the latest disruptions, linked to escalating tensions affecting critical global shipping routes, have pushed up freight costs and driven increases in prices of key fertiliser inputs. These include Granular Ammonium Sulphate (GAS), Diammonium Phosphate (DAP), and Muriate of Potash (MOP).

It noted that across multiple markets, supply gaps are emerging, leaving farmers uncertain about availability and pricing ahead of the planting season. “Nigeria, however, has moved ahead of the curve through deliberate Federal Government action,” the statement read.

The company stated that in Q1 2026, GAS was secured at $228 per metric tonne against a current market price of $343, DAP was purchased at $775 per tonne compared to $950, and MOP at $400 per tonne against $430.

“These price differentials reflect the impact of the Federal Government securing supply ahead of global price escalations adding that fertiliser availability and pricing remain central to Nigeria’s agricultural productivity and overall food supply.

“With global market conditions placing increasing pressure on input costs, the Federal Government’s intervention ensures consistent supply and price stability to support production outcomes across the agricultural sector.

“PFI NPK operates a centralised bulk procurement and distribution model on behalf of the Federal Government. It imports raw materials and supplies them to 94 FEPSAN registered blending plants across Nigeria. The company does not import finished fertiliser, ensuring that all NPK production is carried out domestically, supporting local industry and value addition,” it stated.

The statement indicated that in 2025, the Federal Government, through PFI NPK, delivered 648,000 metric tonnes of raw materials, adding that for 2026, operations are being scaled significantly, with a target of 1.52 million metric tonnes.

It stated that for farmers preparing for the 2026 wet season, the immediate outcome of the Federal Government’s intervention is supply certainty.

The company said that raw materials are either already in-country or in transit as blending plants are receiving inputs, it added that the risk of sudden price shocks linked to global disruptions has been significantly reduced.

“The supply chain operates under strict Federal Government governance protocols. Collateral Management Agents provide independent oversight at warehouses, while raw materials remain under PFI NPK control until confirmed sales and repayment are executed.

“Standard operating procedures, developed in collaboration with the Fertiliser Producers and Suppliers Association of Nigeria (FEPSAN), guide handling, storage, and distribution. Regulatory compliance is ensured through NAFDAC and Standards Organisation of Nigeria (SON) requirements. Operations are further supported by the Office of the National Security Adviser (ONSA), whose approval remains central to PFI NPK’s ability to operate and scale distribution nationwide,” it added.