Executive Secretary, Fertilizer Producers and Suppliers Association of Nigeria (FEPSAN), Mr. Gideon Negedu, has said the association is working closely with the Ministry of Finance Incorporated (MOFI) to address the rising cost of fertilser.
Negedu explained that fertiliser producers are facing hurdles due to the high cost of importing production components. The situation, according to him, is primarily driven by a reliance on imported raw materials, global supply chain disruptions, and foreign exchange volatility. He noted that producers rely heavily on imported components such as phosphate from Morocco, which exposes the industry to global market shocks. He explained that producers have had to explore cheaper sources of components abroad to prevent production halts.
“We operate as a business. We’re not going to produce at a loss,” Negedu stated.
With MOFI now managing the Presidential Fertilizer Initiative (PFI-NPK Limited), Negedu noted that efforts are ongoing to ensure local producers have access to funds for critical imports.
He recalled a period when producers brought in items at a rate of N1,800 per dollar, though he noted that recent shifts have started to impact local prices. “The price of fertilizer is going down. Before, it sold for N57,000 a bag. Today, it is between N35,000 and N42,000,” he said. However, he admitted that the depreciation of the Naira against the US Dollar remains a challenge, as it directly increases production costs for domestic manufacturers and landed costs for importers.
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Farmers across Nigeria and the globe are facing a renewed period of financial uncertainty as fertilizer markets exhibit fresh volatility ahead of the 2026 planting season. According to a recent market intelligence report, while prices have not returned to the record peaks of 2022, they are climbing steadily. The report warned that the reprieve seen in 2023 and 2024 has ended, replaced by rising costs for key nutrients like phosphates and potash. This resurgence is driven by trade disruptions and energy shocks. Notably, Gulf diammonium phosphate (DAP) prices jumped from approximately $583 per ton in January 2025 to nearly $800 in August—a 36 percent increase in less than eight months.
Nigeria’s heavy dependence on these imports has reignited calls for the speedy completion of the Akwa Ibom fertilizer complex, a joint venture with Morocco seen as critical to achieving self-sufficiency. MOFI disclosed that more than 560,000 metric tons of fertilizer raw materials were imported into Nigeria in 2025 alone, with at least 10 vessels discharging cargoes under the PFI.
The President of FEPSAN, Sadiq Kassim, warned that delays in the Akwa Ibom complex could undermine national ambitions. “The understanding I have of the bilateral agreement is for Morocco and Nigeria to collaborate in producing and establishing a manufacturing plant that can use Nigeria’s gas resources and Morocco’s phosphate expertise. This would enable Nigeria to produce not only ammonia but also phosphoric acid and other phosphates. The project was initially targeted to begin its first phase by June 2025, but it is clearly facing delays,” Kassim explained. He described the facility as a vital South-South cooperation where two developing countries use their own natural resources to impact the global market, noting that its completion would significantly ease the nation’s import burden and strengthen food security.
