Early procurement of fertiliser has saved the country an estimated ₦61.58 billion ahead of the wet farming season, NewsSpecng learnt.
According to PFI NPK Limited, the implementation vehicle of the Presidential Fertiliser Initiative (PFI), the early preparation has saved the country from global shock.
Currently, several African countries are facing mounting fertilizer shortages and escalating input costs caused by renewed tensions affecting major international shipping routes.
The disruptions have led to increased freight charges and sharp rises in the prices of critical fertiliser raw materials, creating uncertainty for farmers across the continent ahead of the planting season.
However, Nigeria’s proactive procurement approach has enabled it to avoid the worst effects of the crisis, ensuring both supply stability and significant cost savings.
PFI NPK Limited, a wholly-owned entity of the Ministry of Finance Incorporated (MOFI), disclosed that it secured its fertiliser raw materials months before the current market volatility emerged, locking in favourable prices and guaranteeing uninterrupted supply for domestic production.
According to procurement and shipment records for the first quarter of 2026, the company secured nine vessels carrying a combined 407,304 metric tonnes of fertiliser raw materials.
Together with opening stock balances at the beginning of the year, the company made available a total of 534,219 metric tonnes of inputs required for NPK fertiliser production.
The records further indicate that all Letters of Credit associated with the purchases had either been fully established or settled, ensuring seamless supply continuity and eliminating the risk of procurement delays.
Distribution efforts are already underway nationwide. As of mid-April 2026, more than 323,109 metric tonnes of raw materials equivalent to approximately 6.5 million 50-kilogram bags of fertiliser had been released to registered blending plants across the country. over 198,264 metric tonnes, representing roughly four million bags, had already been offtaken, signaling active movement of fertiliser products into the agricultural value chain ahead of peak planting activities.
Director of PFI NPK Limited, Dr. Armstrong Ume Takang, said the early procurement strategy was deliberately designed to shield Nigeria’s agricultural sector from external market shocks and protect farmers from rising production costs.
According to him, securing supply agreements ahead of anticipated disruptions enabled the company to lock in lower prices and ensure the availability of key inputs before global market conditions worsened.
“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,” Takang said.
Financial records reviewed alongside the procurement data show that the strategy generated total savings of approximately $43.99 million, equivalent to about ₦61.58 billion at prevailing exchange rates.
The savings were achieved through early purchases of major fertiliser components at significantly lower prices than current market rates. Granular Ammonium Sulphate (GAS) was procured at $228 per metric tonne compared to a current market price of $343 per tonne.
Diammonium Phosphate (DAP) was secured at $775 per tonne against the prevailing market rate of $950, while Muriate of Potash (MOP) was purchased at $400 per tonne compared to a current price of $430.
Industry analysts note that fertiliser availability and affordability remain critical factors in determining agricultural productivity, food security and inflation trends in Nigeria.
Rising global input costs have become a major concern for governments across Africa, with many countries struggling to secure adequate supplies ahead of the planting season.
PFI NPK’s intervention is expected to help cushion Nigerian farmers from those pressures by ensuring a steady flow of inputs and reducing the likelihood of sudden price spikes during the wet season.
The company operates a centralized bulk procurement and distribution model that imports raw materials rather than finished fertiliser products.
These materials are then supplied to 94 blending plants registered under the Fertiliser Producers and Suppliers Association of Nigeria (FEPSAN), ensuring that NPK fertiliser production takes place within Nigeria.
The approach is designed to promote local manufacturing, create jobs, support value addition and reduce dependence on imported finished fertiliser products.
PFI NPK reported that it delivered 648,000 metric tonnes of raw materials in 2025. For 2026, the company plans a major expansion of operations, targeting the delivery of 1.52 million metric tonnes of inputs to blending facilities nationwide.
the company said it operates under strict governance protocols. Independent Collateral Management Agents monitor warehouse operations, while ownership and control of raw materials remain with PFI NPK until sales are confirmed and repayments completed.
The company also works under standard operating procedures jointly developed with FEPSAN, while regulatory compliance is overseen by the National Agency for Food and Drug Administration and Control and the Standards Organisation of Nigeria.
operations receive strategic support from the Office of the National Security Adviser, whose approval remains essential to the company’s nationwide distribution activities.
For Nigerian farmers preparing for the 2026 wet season, the immediate impact is increased certainty regarding fertiliser availability and pricing. With substantial quantities of raw materials already in-country and additional shipments arriving, concerns over shortages and unexpected cost increases have been significantly reduced.
Takang emphasized that the ultimate objective of the programme is to ensure farmers have timely access to affordable fertiliser, thereby supporting agricultural output and national food security.
“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.
PFI NPK said it is pursuing long-term supply security through government-to-government partnerships with international suppliers while also developing a digital enterprise platform that will provide real-time visibility across procurement, inventory management and distribution operations.
The company said these initiatives are expected to strengthen efficiency, improve transparency and further enhance Nigeria’s resilience against future disruptions in global fertiliser markets.
