The Nigeria Sovereign Investment Authority (NSIA) has announced plans to withdraw from the Presidential Fertiliser Initiative (PFI), marking the end of an eight-year intervention that helped transform Nigeria’s fertiliser industry.
The announcement was made during NSIA’s 2024 Earnings Presentation and media briefing held in Abuja on Wednesday.
Established in 2017, the Presidential Fertiliser Initiative aimed to provide Nigerian farmers with access to affordable, high-quality fertiliser while reviving the local fertiliser blending industry. At its inception, only four blending plants were operational across the country. However, through the NSIA’s implementation of the programme via a Special Purpose Vehicle, NAIC-NPK Limited, the number of functional plants has now risen to over 90.
Speaking at the event, NSIA Managing Director and Chief Executive Officer, Mr. Aminu Umar-Sadiq, said the programme had successfully fulfilled its objective and was no longer in need of the Authority’s oversight.
Umar-Sadiq explained that the fertiliser initiative was always intended to be a short-term intervention, noting that NSIA’s initial role included procuring raw materials, paying for blending, and overseeing distribution.
He said: “We started by procuring all the raw materials, transporting them to the plants, paying for blending, and then distributing the finished products.
Over time, as these companies established credible financial histories, we encouraged them to access bank guarantees to independently purchase raw materials.
“Today, we only import phosphate and potash. Within two to three years, the blending plants are expected to handle all input sourcing independently, allowing NSIA to fully exit the sector.
He added that the exit plan aligns with the policy direction of President Bola Tinubu’s administration and would be executed in about three years unless interrupted by unexpected market developments.
Commenting on NSIA’s broader investment strategy, Umar-Sadiq said the Authority has adopted a defensive asset allocation approach across its Stabilisation Fund and Future Generations Fund to navigate global economic uncertainty.
He cited rising geopolitical risks, particularly in the United States, as a key driver of the cautious investment stance.
“We have allocations to private equity, hedge funds, real estate, and inflation-linked instruments. This strategy may limit upside gains when markets are bullish, but it shields the portfolio during downturns, which is critical given the savings mandate of the Sovereign Wealth Fund,” he explained.
The NSIA chief also disclosed that the Authority had attracted more than $1 billion in third-party capital for infrastructure development, while investing $500 million of its own funds. Notable projects include the MedServe oncology centre, which is nearing closure with a tier-one institution, and a new capital injection into the Nigerian Mortgage Refinance Company involving a major global financial partner.
NSIA has received a total of $1.82 billion in net government contributions since inception. As of December 2024, the Authority’s net asset value stood at $2.84 billion (approximately N4.35 trillion).
In the 2024 fiscal year, the initiative posted an operating income of N1.85 trillion, profit after tax of N1.88 trillion, and a total comprehensive income of N1.88 trillion. It also recorded a return on average assets of 12.2% and a return on average equity of 12.4%.
Umar-Sadiq reaffirmed NSIA’s commitment to mobilising capital and driving long-term economic growth across key sectors including agriculture, housing, energy, and healthcare.