Based on a survey by the Federal Ministry of Agriculture and Rural Development (FMARD), 80% of the land used in Nigeria is deficient in key elements such as nitrogen and phosphorous. The nitrogen content is estimated at below 0.1% of the total land being cultivated while the phosphorous content is below 10mg/kg[1].
To address this deficiency, the fertilizer industry in Nigeria has been dependent on import and local production of different types of fertilizer compounds to meet the domestic needs of farmers. The fertilizer compounds being imported are the ‘multi nutrient’ fertilizers, known as the Nitrogen Phosphate and Potash (NPK) blends of fertilizer, which can be used for a wide variety of crops.
In 2016, President Buhari set up the Presidential Fertilizer Initiative (PFI), the administration’s flagship fertilizer policy, to boost the local blending of fertilizer and pare the country’s huge dependence on the imports of blended fertilizer.
The Federal government has also negotiated contracts for the import of other raw materials such as Diammonium Phosphate (DAP) from Morocco, and Potash sourced from Europe[2] for onward supply to industry operators.
In 2017, the market share analysis of the industry remained relatively stable as major players have continued to maintain their market positions. Given the capital intensive nature of the industry, entry of new players has been limited, while the current operators continue to leverage their brands, production capacity and financial strength to compete for market share.
[1] FMARD
[2] https://africanharvesters.com
This report provides a broad insight of the Nigerian fertilizer Industry. In particular, the report:
Information that the Report Provides
