NSIA blames logistics for high cost of fertilizer, saves N60b from subsidy

The Nigeria Sovereign Investment Authority (NSIA) has blamed the high costs of fertiliser on transportation logistics and location of usage.

Speaking in Abuja at a roundtable of stakeholders on the Presidential Fertilizer Initiative (PFI) after its eight years of implementation, the NSIA said the gathering was convened to review accomplishments, address ongoing challenges, and explore prospects for further development in the industry.

Launched in 2016, the PFI was conceived to address challenges in Nigeria’s fertiliser sector, which had long been hampered by inefficiencies and an over-reliance on imports.

NSIA disclosed that through its leadership, the PFI resuscitated and established 84 blending plants across the six geo-political zones of Nigeria, accrued over $200 million in foreign exchange savings, created more than 100,000 direct and indirect jobs and generated yearly fiscal savings of over N60 billion from fertiliser subsidy elimination.

It added: “To date, the initiative has delivered 90 million bags of locally blended high-quality fertilisers to farmers. Notably, despite the disruption of supply chains during global events such as the COVID-19 pandemic and the Russia-Ukraine war, the initiative ensured a steady supply of fertilizers across the country.

On the rising costs of fertiliser, the NSIA said the impact of foreign exchange fluctuations on key imported raw materials persists in exacerbating cost pressures, which has added another layer of complexity to the value chain.

Recognising the challenges, NSIA hinted that it is working with its partners to ensure that the PFI continues to deliver on its mission to support Nigeria’s agricultural sector.

Speaking at the event, the Project Lead, IruansiItoandon, described the programme as “a shining example of what we can achieve when we work together with a shared vision for our country’s future.”

With the next phase of the initiative approaching, the NSIA stressed the need to continue to strategically position the PFI to achieve maximum impact in this critical ecosystem.

While speaking at the PFI roundtable, the Managing Director and CEO, NSIA, Aminu Umar-Sadiq, represented by the Head, Corporate Planning, NSIA, Sybil Etuk, said: “PFI aligns with the Authority’s mandate to strengthen the agricultural sector, uphold import substitution as a critical lever for National development and ultimately create shared value for all stakeholders.”

On his part, the President, Fertiliser Producers and Suppliers Association of Nigeria (FEPSAN), Sadiq Kassim, proposed that the PFI with FEPSAN, establish a fertiliser institute to build the technical and financial capacity of players within the ecosystem.

He said: “As we celebrate the PFI’s achievements in improving agricultural productivity and bolstering food security, greater inter-agency collaboration is envisioned to direct the initiative into full private sector control for its continued success and the sustained development of our country.”