Despite efforts of the Nigerian government to grow the Fertilizer Industry, fertilizer consumption rate in Nigeria remains below its peers in Africa and below the world average, albeit recording growth over the recent years. According to the World Bank, Nigeria’s fertilizer consumption in kilograms per hectare of arable land stood at 19.7 in 2018, below Ghana’s 29.4kg/ hectare of arable land and the average consumption rate in sub-Saharan Africa of about 33kg/ hectare of arable land. The nutrient-deficient nature of Nigerian land, especially in the Northern states where most agricultural activities occur continues to open opportunities for growth in the Industry. Private sector participation has increased in the last decade, while the government continues to drive fertilizer consumption through its Presidential Fertilizer Initiative (PFI), with the ultimate aim of achieving food self-sufficiency of the economy in the near term.
Despite the challenges faced by the Fertilizer Industry in Nigeria, Agusto & Co expects growth of the Industry in the near term on account of private sector investments and a restructuring of the PFI, which commences in the 2021 cycle. The revised PFI will see a reduction in the activities of the government through Nigerian Sovereign Investment Authority (NSIA) in fertilizer blending and distribution, while ensuring increased activities of the PFI blenders across the production value chain. This, coupled with an enhanced access to low interest financing by smallholder famers, will help boost fertilizer production and consumption in the near term. The recently enacted Quality Control Act of 2019 is also expected to provide a higher level of assurance to farmers on the quality and effectiveness of fertilizers.
This report provides useful insights on various aspects of the cashew nuts and sesame seeds markets. Key benefits of the report include the following: