By Bassey Udo
Nigeria has secured its fertiliser supply for the 2026 wet season with its early procurement strategy saving the country
over ₦61.58 billion (about $43.99 million).
PFI NPK Limited, the wholly owned entity of the Ministry of Finance Incorporated (MOFI) and the implementation vehicle for the Presidential Fertiliser Initiative, said this landmark achievement was confirmed through official procurement and shipment records, which showed that the strategy successfully shielded the country from a fresh wave of global market disruptions.
While several African countries face fertiliser shortages and soaring input costs — driven by escalating tensions affecting key global shipping routes — PFI NPK Limited said the Federal Government had proactively moved months ahead of the crisis to lock in supply and pricing to avoid the negative impact of fertilizer scarcity on farming next season.
Amid global market disruptions
The latest wave of market disruptions linked to escalating geopolitical tensions have affected critical global shipping routes, pushing freight costs sharply higher and triggering price increases across key fertiliser inputs.
Granular Ammonium Sulphate (GAS), Diammonium Phosphate (DAP), and Muriate of Potash (MOP) — the three core raw materials used in NPK fertiliser blending — have all seen significant price escalations on global spot markets.
Across multiple countries, supply gaps are growing, leaving farmers uncertain about both availability and cost ahead of the next planting season.
The Director of PFI NPK Limited, Dr. Armstrong Takang, who is also the MD of MOFI said Nigeria, however, had already secured its position before those pressures took hold.
The procurement strategy
Dr Takang disclosed that the first quarter 2026 procurement and shipment records revealed that PFI NPK Limited, had proactively locked in nine vessels conveying a combined 407,304 metric tonnes of fertiliser raw materials.
Added to an opening stock balance carried into the 2026 cycle, Takang said total raw materials available for domestic NPK production now stands at 534,219 metric tonnes, with all associated Letters of Credit fully established or settled, guaranteeing supply continuity with no financing gaps.
The financial impact of the early procurement decisions, he said, is obvious, with GAS secured at $228 per metric tonne, compared to a current spot market price of $343 — a difference of $115 per tonne; DAP locked in at $775 per tonne against a prevailing market price of $950, while MOP was procured at $400 per tonne against a current price of $430.
Across the volumes involved, he said these price differentials generated total verified savings of $43.99 million, equivalent to approximately ₦61.58 billion.
Already, he said distribution of the materials has commenced to guarantee
procurement advantage translating into supply on the ground.
As of mid-April 2026, he said over 323,109 metric tonnes — approximately 6.5 million 50kg bags — had been released to registered blending plants across the country.
Besides, he said more than 198,264 metric tonnes, or about four million 50kg bags, had already been offtaken by distributors, indicating that the supply chain was functioning actively ahead of peak planting demand.
The Director described the approach as a calculated hedge against the kind of volatility now gripping global markets.
“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,” he said.
“That foresight by the Federal Government is what has ensured that Nigeria is not exposed to the disruptions currently affecting global fertiliser markets.
How the system works
PFI NPK operates a centralised bulk procurement and distribution model designed to serve Nigeria’s entire domestic blending industry.
Rather than importing finished fertiliser, the company imports raw materials and supplies them to 94 FEPSAN-registered blending plants spread across the country.
All NPK fertiliser is then produced domestically, supporting local industrial capacity and value addition within Nigeria’s agricultural supply chain.
The supply chain operates under strict Federal Government governance. Independent Collateral Management Agents provide oversight at warehouses, while raw materials remain under PFI NPK’s control until confirmed sales and repayments are completed.
Standard operating procedures — developed in partnership with the Fertiliser Producers and Suppliers Association of Nigeria (FEPSAN) — govern handling, storage, and distribution.
Regulatory compliance is maintained through the National Agency for Food and Drug Administration and Control (NAFDAC) and the Standards Organisation of Nigeria (SON).
The Office of the National Security Adviser (ONSA) also plays a central role, with its approval required for PFI NPK to operate and scale distribution nationwide.
Scaling up for 2026 programme
The scale of the Federal Government’s 2026 fertiliser programme marks a significant step up from previous years.
In 2025, PFI NPK delivered 648,000 metric tonnes of raw materials to blending plants nationwide.
For 2026, the target has been raised to 1.52 million metric tonnes — more than double the previous year’s output — reflecting both growing demand and increased government ambition around agricultural productivity.
Dr. Takang emphasised that the ultimate measure of the initiative’s success lies 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, the Federal Government is supporting that outcome at scale,” he said.
Looking ahead
Beyond the immediate 2026 season, Takang said the Federal Government is working to put longer-term supply security in place.
Besides,he said government-to-government partnerships are being developed with international suppliers to reduce Nigeria’s exposure to commercial market volatility in future cycles.
He said plans are also advancing for a digital enterprise system that will provide real-time visibility across the full procurement, inventory, and distribution chain — improving both efficiency and accountability as the programme continues to scale.
For farmers preparing for the 2026 wet season, Takang said the message is straightforward: raw materials are either already in-country or in transit, blending plants are receiving inputs, and the risk of sudden price shocks linked to global disruptions has been substantially reduced.
