Nigeria Saves $44m on Fertiliser Procurement
An early procurement strategy approved by President Bola Tinubu insulated Nigeria from fertiliser price surges triggered by geopolitical tensions, saving the country approximately $44 million.
igeria has saved approximately $44m on fertiliser raw material purchases after the Federal Government approved an early procurement strategy that insulated the country from supply disruptions and price surges triggered by the ongoing conflict between the United States and Iran.
PFI NPK Limited, the implementation vehicle for the Presidential Fertiliser Initiative and a wholly owned entity of the Ministry of Finance Incorporated, disclosed this in a statement issued in Abuja.
The company said the early procurement exercise, approved by President Bola Tinubu, enabled Nigeria to secure fertiliser supplies months before fresh geopolitical tensions disrupted global shipping routes and pushed up the prices of key agricultural inputs.
The strategy generated savings of $43.99m, equivalent to approximately N61.58bn, compared to prevailing international spot market prices.
Director of PFI NPK Limited, Dr Armstrong Takang, said the outcome was the result of deliberate foresight. "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 is what has ensured that Nigeria is not exposed to the disruptions currently affecting global fertiliser markets," he said.
To ensure accountability, independent Collateral Management Agents oversee warehouse operations, while raw materials remain under the company's control until sales are completed and repayments made.
Regulatory compliance is enforced through the National Agency for Food and Drug Administration and Control (NAFDAC) and the Standards Organisation of Nigeria, with the Office of the National Security Adviser also playing a key role in supporting the programme's nationwide distribution network.
Looking ahead, PFI NPK said it is pursuing long-term supply security through government-to-government partnerships with international suppliers and plans to deploy a digital enterprise platform providing real-time visibility across procurement, inventory management, and distribution operations. Takang said the ultimate objective remains straightforward.
"What matters is that the farmer can access fertilizer when needed and at a price that does not undermine production. By stabilizing supply and managing cost exposure at the procurement stage, we are supporting that outcome at scale," he said.
