Fed Govt Saves Over ₦60bn by Removing Fertilizer Subsidy – NSIA

The Nigeria Sovereign Investment Authority (NSIA) announced on Monday that the Federal Government has saved over ₦60 billion by removing the fertiliser subsidy, a move executed under the Presidential Fertiliser Initiative (PFI) over the past eight years.

The NSIA, which oversees the PFI, revealed that its efforts have revitalized Nigeria’s fertiliser industry, leading to the establishment of 84 blending plants across the country’s six geo-political zones. The initiative has also generated over $200 million in foreign exchange savings and created more than 100,000 jobs, both directly and indirectly. Additionally, the PFI has facilitated the delivery of 90 million bags of locally blended, high-quality fertiliser to Nigerian farmers.

Launched in 2016, the PFI aimed to address long-standing challenges in Nigeria’s fertiliser sector, which had been plagued by inefficiencies and an over-reliance on imports. At a stakeholders’ roundtable in Abuja, Aminu Umar Sadiq, Managing Director of NSIA, highlighted the initiative’s success in achieving its objectives, including reducing the government’s subsidy burden and reviving the domestic fertiliser industry.

“Today, we can proudly say that our objectives have not only been met but surpassed in ways that exceeded our expectations,” Sadiq, represented by Sybil Etuk, NSIA’s Head of Corporate Planning and Strategy, stated. He emphasized that the PFI has not only boosted the production of NPK fertiliser but also diversified the range of products available to farmers and significantly reduced logistics costs, creating a more stable and competitive market.

Despite disruptions from global events such as the COVID-19 pandemic and the Russia-Ukraine war, the PFI has maintained a steady supply of fertiliser across Nigeria. Sadiq acknowledged the ongoing challenges posed by foreign exchange fluctuations on imported raw materials but assured that NSIA is actively working with partners to continue supporting Nigeria’s agricultural sector.

Meanwhile, the Fertiliser Producers and Suppliers Association of Nigeria (FEPSAN) has attributed the high cost of fertiliser in the country to weak regulatory frameworks and rising logistics costs, despite government interventions. FEPSAN President, Abubakar Sadiq Kassim, pointed out that inefficiencies in raw material purchasing, interest rates, and transportation are key factors driving up fertiliser prices and limiting availability to farmers. He called for improved management of these costs to enhance sector efficiency.

Kassim also highlighted recent discussions with the NSIA, which have already identified and addressed several cost-saving opportunities, resulting in savings of about $100 million since February. However, he noted that challenges like foreign exchange volatility continue to impact the sector. He urged regulators to increase their oversight to ensure fair pricing and prevent exploitation of farmers.

Iruansi Itoandon, Project Lead for PFI, praised the programme as a successful example of partnership-driven initiatives with a shared vision. He stressed that while exchange rate fluctuations are beyond the control of fertiliser blenders, the focus should remain on delivering value and efficiency to ensure fair and beneficial pricing for farmers.