The Federal Government’s decision to approve the early procurement of fertiliser raw materials has saved Nigeria about $44m and shielded farmers from supply disruptions triggered by the ongoing conflict between the United States and Iran, according to PFI NPK Limited.
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 on Friday in Abuja.
The company said the early procurement strategy, approved by President Bola Tinubu, enabled Nigeria to secure fertiliser supplies months before fresh geopolitical tensions disrupted global shipping routes and pushed up prices of key agricultural inputs.
Speaking on the development, the Director of PFI NPK Limited, Dr Armstrong Takang, said the move insulated Nigeria from the supply shocks and rising costs currently affecting fertiliser markets across Africa and other parts of the world.
“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,” Takang said.
The statement comes amid heightened concerns over the impact of the US-Iran conflict on global commodity markets, with disruptions to critical shipping routes contributing to higher freight costs and increases in the prices of major fertiliser inputs.
According to PFI NPK, the early procurement exercise generated savings of $43.99m, equivalent to about N61.58bn, compared to prevailing international spot market prices.
The company explained that Granular Ammonium Sulphate was secured at $228 per metric tonne against a current market price of $343 per tonne, while Diammonium Phosphate was purchased at $775 per tonne compared to the prevailing $950 market rate.
Similarly, Muriate of Potash was acquired at $400 per tonne, lower than the current market price of $430 per tonne. PFI NPK disclosed that it secured nine vessels carrying a combined 407,304 metric tonnes of fertiliser raw materials during the first quarter of 2026.
The company said this brought the total raw material stock available for NPK fertiliser production to 534,219 metric tonnes, including opening inventory carried into the 2026 production cycle.
It added that all Letters of Credit associated with the imports had either been fully established or settled, guaranteeing uninterrupted supply to blending plants nationwide.
According to the procurement records, over 323,109 metric tonnes of raw materials, equivalent to about 6.5 million 50kg bags, had been released to registered fertiliser blending plants across the country as of mid-April.
Out of this volume, more than 198,264 metric tonnes, representing roughly four million bags, had already been offtaken for production and distribution ahead of the peak wet-season farming period.
The company noted that fertiliser availability remains critical to agricultural productivity and food security, particularly at a time when global market volatility is increasing pressure on farming input costs.
It explained that its centralised procurement model allows fertiliser raw materials to be imported in bulk and supplied to 94 blending plants registered under the Fertiliser Producers and Suppliers Association of Nigeria.
PFI NPK stressed that it does not import finished fertiliser products, saying all NPK fertiliser supplied under the programme is blended locally to support domestic manufacturing and value addition.
The firm said it supplied 648,000 metric tonnes of raw materials in 2025 and is targeting a significant expansion to 1.52 million metric tonnes in 2026. To ensure accountability, it said independent Collateral Management Agents oversee warehouse operations, while raw materials remain under the company’s control until sales are completed and repayments made.
The company added that its operations are governed by standard procedures developed jointly with FEPSAN, while regulatory compliance is enforced through the National Agency for Food and Drug Administration and Control and the Standards Organisation of Nigeria.
It also stated that the Office of the National Security Adviser plays a key role in supporting the programme’s operations and nationwide distribution network. Takang said the ultimate objective of the intervention was to guarantee affordable fertiliser access for farmers and protect food production from external shocks.
“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, we are supporting that outcome at scale,” he said.
The company further disclosed that it is pursuing long-term supply security through government-to-government partnerships with international suppliers and plans to deploy a digital enterprise platform that will provide real-time visibility across procurement, inventory management and distribution operations.
It maintained that with substantial volumes of raw materials already in the country or en route to Nigeria, farmers preparing for the 2026 wet season could be assured of adequate fertiliser supply despite the uncertainties in global markets.
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