• Says early procurement strategy secured fertilisers for wet season, saved over $42m
Ndubuisi Francis in Abuja
The Ministry of Finance Incorporated (MOFI) has stated that Nigeria is not exposed to the current disruptions affecting global fertiliser markets, attributing this to its early procurement strategy, designed to shield Nigeria from external shocks occasioned by the ongoing Middle East conflict which led to the blockade of the Strait of Hormuz.
In a statement, MOFI said while several countries across Africa grapple with fertiliser shortages and rising input costs triggered by fresh global disruptions, Nigeria had secured its fertiliser supply for the 2026 wet season, following early procurement decisions that have also saved the country over $42 million.
The latest disruptions, linked to escalating tensions affecting critical global shipping routes, have pushed up freight costs and driven increases in the prices of key fertiliser inputs, including Granular Ammonium Sulphate (GAS), Diammonium Phosphate (DAP), and Muriate of Potash (MOP).
Across multiple markets, supply gaps are emerging, leaving farmers uncertain about availability and pricing ahead of the planting season.
According to MOFI Nigeria has however, moved ahead of the curve.
“PFI NPK Limited, the wholly-owned entity of the MOFI and implementation vehicle for the Presidential Fertiliser Initiative (PFI), confirmed that it secured its 2026 supply position months before the current market volatility.
According to official Q1, 2026 procurement and shipment records made available, the company locked in nine vessels carrying a combined 407,304.00 metric tonnes, making a total of 534,219 metric tonnes of raw materials, including the opening balance at the beginning of the 2026 cycle, available for NPK fertiliser production.
MOFI disclosed that all associated Letters of Credit (LC) have been fully established or settled, ensuring supply continuity.
The records further show that as of mid-April 2026, over 323,109.24 metric tonnes (approximately 6.5 million 50kg bags) had been released to registered blending plants nationwide, with more than 198,264.41 metric tonnes (approximately 4 million 50kg bags) already offtaken, indicating active distribution across the country ahead of peak planting.
Speaking on the development, the Director of PFI NPK Limited, who doubles as the Chief Executive Officer of MOFI,
Dr. Armstrong Ume Takang, said the early procurement strategy was designed to shield Nigeria from external shocks.
He said, “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.”
Financial data reviewed alongside the procurement records indicate that the early purchasing strategy generated total savings of $43.99 million, equivalent to approximately N61.58 billion, when compared with prevailing spot market prices.
A breakdown of the figures shows that GAS was secured at $228 per metric tonne against a current market price of $343, while DAP was locked in at $775 per tonne compared to $950, and MOP at $400 per tonne against $430.
These price differentials reflect the impact of securing supply ahead of global price escalations.
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, ensuring consistent supply and price stability is critical to supporting production outcomes across the agricultural sector.
PFI NPK operates a centralised bulk procurement and distribution model, importing raw materials and supplying 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.
In 2025, it delivered 648,000 metric tonnes of raw materials. For 2026, operations are being scaled significantly, with a target of 1.52 million metric tonnes.
The supply chain operates under strict 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, with regulatory compliance ensured through the National Agency for Drugs Administration and Control (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 its distribution across the country.
MOFI assured farmers preparing for the 2026 wet season of supply certainty, adding that raw materials are either already in-country or in transit, blending plants receiving input and the risk of sudden price shocks linked to global disruptions significantly reduced.
Takang emphasised that the impact of the intervention ultimately rests at the farm level.
“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.
MOFI noted that it is strengthening long-term supply security through government-to-government partnerships with international suppliers and advancing plans for a digital enterprise system to provide real-time visibility across procurement, inventory, and distribution.
PFI NPK Limited is a wholly owned entity of the Ministry of Finance Incorporated (MOFI) and the designated implementation vehicle for Nigeria’s Presidential Fertiliser Initiative. The company operates a centralised bulk procurement and distribution system for fertiliser raw materials, ensuring domestic blending and nationwide supply stability.
