From Adanna Nnamani, Abuja
President of the Fertilizer Producers and Suppliers Association of Nigeria (FEPSAN), Abubakar Kassim, has called for a strategic overhaul of the country’s fertilizer industry to address ongoing challenges.
Kassim spoke Monday at the Presidential Fertilizer Initiative (PFI- NPK) Stakeholders’ Roundtable themed ‘The Presidential Fertilizer Initiative (PFI): Imperatives for Food Security’, which was organised by Nigeria Sovereign Investment Authority (NSIA) in Abuja.
The FEPSAN president pointed out several issues, including high production financing costs, supply constraints, and the proliferation of low-quality fertilizers, which he attributed to the weak implementation of the Fertilizer Control Act of 2019.
He also listed logistical inefficiencies due to inadequate infrastructure and volatility in foreign exchange rates as some of the constraints of the industry.
Kassim acknowledged that while the TFI-NPK was initially successful in its mission to efficiently deliver fertilizers to Nigerian farmers, the organisation’s focus has shifted over time from its primary objectives to commercial interests.
He emphasised the need to return to these founding principles, noting that TFI-NPK’s substantial surpluses have not effectively addressed infrastructure needs for service delivery.
The association president advocated for several strategic measures to improve the sector, including expanding the range of imported raw materials to include micronutrients, soluble fertilizers, and advanced fertilization technologies.
Kassim also proposed the establishment of a fertilizer institute, in collaboration with PFI and PEPSAN, to enhance the technical and financial capabilities of industry players.
“As an association, we believe that maximizing cost efficiency will include benefits of reducing transaction costs with low risks and ultimately reduce the price of the blended fertilizer. We have identified many of these costs and are looking forward to the next phase of sustainable development,” he stated.
Similarly, Iruansi Itoadon, Project Lead and President of the Fertilizer Initiative, blamed forex volatility on the escalating costs of agricultural inputs and their impact on farmers.
Itoadon, reflecting on the current economic climate, drew comparisons between past and present prices of basic commodities to illustrate the broader economic pressures affecting the sector.
He argued that the significant depreciation of the Naira against the USD, from N190 per dollar to over N1,600 per dollar, has compounded the challenges faced by fertilizer producers and blenders.
“These shifts are not entirely within our control. As fertilizer prices rise, the real focus should be on delivering value to farmers, even if costs are high,” he stressed.
In spite of these challenges, Itoadon said there has been significant improvement in the sector, pointing out that Nigeria’s fertilizer industry, which was once dependent on imports, now generates numerous jobs through local blending plants and related value chains.
“From zero supply, we have created thousands of jobs and reduced dependency on imports,” Itoadon said.
However, he stressed the need for continued efficiency improvements to lower costs and ensure competitive pricing.