By Igwe Idika
While several countries across Africa grapple with fertiliser shortages and rising input costs triggered by fresh global disruptions, the Federal Government has secured Nigeria’s fertiliser supply for the 2026 wet season. Early procurement decisions by the FG have also saved the country over $42 million ahead of peak planting.
The latest disruptions, linked to escalating tensions affecting critical global shipping routes, have pushed up freight costs and driven increases in prices of key fertiliser inputs. These include 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.
Nigeria, however, has moved ahead of the curve through deliberate Federal Government action.
PFI NPK Limited, the wholly owned entity of the Ministry of Finance Incorporated (MOFI) and implementation vehicle for the Presidential Fertiliser Initiative, confirmed that the Federal Government secured its 2026 supply position months before the current market volatility.
According to official Q1 2026 procurement and shipment records made available to the press, the FG, through PFI NPK Limited, locked in nine vessels carrying a combined 407,304.00 metric tonnes. This brings total raw materials to 534,219 MT, including the opening balance at the beginning of the 2026 cycle, available for NPK fertiliser production. All associated Letters of Credit 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. More than 198,264.41 metric tonnes, approximately 4 million 50kg bags, had already been offtaken. This indicates active distribution across the country ahead of peak planting.
Speaking on the development, the Director of PFI NPK Limited, Dr. Armstrong Ume Takang, said the Federal Government’s early procurement strategy was designed to shield Nigeria from external 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 by the Federal Government is what has ensured that Nigeria is not exposed to the disruptions currently affecting global fertiliser markets,” he said.
Financial data reviewed alongside the procurement records indicate that the Federal Government’s early purchasing strategy generated total savings of $43.99 million, equivalent to approximately ₦61.58 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. 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 the Federal Government 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, the Federal Government’s intervention ensures consistent supply and price stability to support production outcomes across the agricultural sector.
PFI NPK operates a centralised bulk procurement and distribution model on behalf of the Federal Government. It imports raw materials and supplies 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, the Federal Government, through PFI NPK, 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 Federal Government 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. Regulatory compliance is ensured through 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 distribution nationwide.
For farmers preparing for the 2026 wet season, the immediate outcome of the Federal Government’s intervention is supply certainty. 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 significantly reduced.
Dr. Takang emphasised that the Federal Government’s 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, the Federal Government is supporting that outcome at scale,” he said.
Looking ahead, the Federal Government is strengthening long-term supply security through Government-to-Government partnerships with international suppliers. Plans are also advancing 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 the Federal Government’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.
