The Federal government through the Presidential Fertiliser Initiative (PFI) NPK Limited has said its early fertiliser procurement strategy saved Nigeria $43.99 million (about N61.58 billion) and protected farmers from the impact of ongoing disruptions in the global fertiliser market ahead of the 2026 wet farming season.

The company, which serves as the implementation vehicle of Nigeria’s Presidential Fertiliser Initiative (PFI) and is wholly owned by the Ministry of Finance Incorporated (MOFI), disclosed this in a statement issued in Abuja.

According to the company, fresh global disruptions affecting major shipping routes have triggered sharp increases in freight costs and prices of key fertiliser inputs, including Granular Ammonium Sulphate (GAS), Diammonium Phosphate (DAP), and Muriate of Potash (MOP), leading to shortages and supply uncertainties in several countries.

However, PFI NPK said Nigeria secured its fertiliser supply months before the market turbulence, ensuring adequate availability of raw materials for local production.

Official procurement and shipment records for the first quarter of 2026 showed that the company secured nine vessels carrying a combined 407,304 metric tonnes of fertiliser raw materials. Together with existing stock, a total of 534,219 metric tonnes of raw materials were made available for NPK fertiliser production.

The records indicated that all associated Letters of Credit had been fully established or settled, guaranteeing uninterrupted supply.

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The company further disclosed that by mid-April 2026, more than 323,109 metric tonnes of raw materials, equivalent to approximately 6.5 million bags of 50kg fertiliser, had been released to registered blending plants nationwide. Of this volume, over 198,264 metric tonnes, representing about four million bags, had already been offtaken for distribution to farmers.

Speaking on the development, the Director of PFI NPK Limited, Dr. Armstrong Ume Takang, said the decision to procure early was aimed at insulating Nigeria from global market 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 is what has ensured that Nigeria is not exposed to the disruptions currently affecting global fertiliser markets,” he said.

The company revealed that the procurement strategy generated savings of $43.99 million when compared to prevailing international market prices.

According to the figures, GAS was purchased at $228 per metric tonne against the current market price of $343, while DAP was secured at $775 per tonne compared with $950. MOP was acquired at $400 per tonne against the prevailing market rate of $430.

PFI NPK noted that fertiliser availability and affordability remain critical to Nigeria’s agricultural productivity and food security, particularly as rising global input costs continue to put pressure on farming operations.

The company operates a centralised procurement and distribution system, supplying fertiliser raw materials to 94 registered blending plants under the Fertiliser Producers and Suppliers Association of Nigeria (FEPSAN).

It emphasised that all fertiliser blending is carried out locally, supporting domestic industry and value addition.

PFI NPK delivered 648,000 metric tonnes of raw materials in 2025 and plans to significantly increase operations to 1.52 million metric tonnes in 2026.

The company also highlighted its governance and monitoring framework, noting that independent collateral management agents oversee warehouse operations while standard operating procedures developed with FEPSAN guide handling and distribution.

Regulatory compliance is monitored through the National Agency for Food and Drug Administration and Control (NAFDAC) and the Standards Organisation of Nigeria (SON), with operational support from the Office of the National Security Adviser (ONSA).

Dr. Takang said the intervention was ultimately designed to ensure farmers have access to fertiliser at affordable prices when needed.

“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.

The company added that it is pursuing long-term supply security through government-to-government partnerships with international suppliers and plans to deploy a digital enterprise system to provide real-time visibility across procurement, inventory management and nationwide distribution.

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