Presidential Fertilizer Initiative to produce 200,000 MT by month end

The plan by the Federal Government to diversify the economy and reduce imports got a massive boost as the Presidential Fertilizer Initiative started off on a promising note with the production of more than 4,000 metric tonnes of locally-blended fertilizer in the first week of operation.

Executed by the Nigeria Sovereign Investment Authority (NSIA) through a Special Purpose Vehicle, the initiative would roll out one million tonnes of NPK Fertilizer in five batches of 200,000 metric tonnes each. It is expected that the initiative would lead to savings of $200 million in foreign exchange and N60 billion in budgetary provisions for fertilizer subsidy while also creating thousands of jobs.

Production of the first batch is expected to be completed by the end of March.

Mr. Laolu Akande, Senior Special Assistant to the Acting President on Media and Publicity, who disclosed this in a statement on Monday in Abuja said the initiative which was approved by President Muhammadu Buhari in December 2016 has started to yield positive results.

The statement noted that this is the first step in the effort to achieve the mandate of production of one million metric tonnes of blended nitrogen, phosphorous and potassium (NPK) fertilizer for the 2017 wet season farming.

If the plan becomes a reality, it would be a welcome departure from the practice of importing blended fertilizer as fully-finished products. The initiative plans to take advantage of the abundant urea and limestone in the country which constitutes roughly two-thirds of the component of each bag of fertilizer.

By sourcing urea and limestone granules locally and importing Diammonium Phosphate (DAP) from Morocco and Muriate of Potash (MOP) from Europe, local blending of these raw materials will result in production of NPK Fertilizer at a much reduced cost of about N5,500 per bag, compared with the nearly N9,000 cost of imported fertilizer.

Beyond the broader goal of ensuring food security for the country by providing high-grade fertilizer to enhance harvest in the 2017 farming season, the Buhari Administration is by this initiative reinforcing its commitment to reviving and diversifying the economy, and creating growth, through a focus on agriculture.

The Presidential Fertilizer Initiative is expected to stimulate local production of NPK Fertilizer by resuscitating moribund fertilizer plants, and reviving the local blending Fertiliser industry.