The Nigerian Sovereign Investment Authority is targeting an increase in the number of fertiliser blending plants in the country from the current 32 to 40 plants by the end of this year.
The Managing Director, NSIA, Uche Orji, who said this in Abuja noted that the move would be implemented under the Presidential Fertiliser Initiative.
The PFI was established following the visit of the King of Morocco to Nigeria in December 2016 and the subsequent signing of a three-year bilateral agreement with Morocco for the supply of Di-ammonium Phosphate, a key ingredient for fertilizer production.
Among other things, the mandate of PFI was to make high quality fertilizer available to Nigerian farmers at the right time and at an affordable price, and to revive the ailing fertilizer blending industry so that Nigeria could achieve food security.
The PFI’s business model involves sourcing for and procurement of four constituent raw materials required for production of NPK 20:10:10 fertilizer.
Of the raw materials sourced, 37 per cent of the inputs – DAP and Muriate of Potash – are imported while the remaining 63 per cent of the raw materials, mostly Urea and limestone granules, are sourced locally.
The raw materials are blended locally at accredited blending plants, nationwide, to produce the fertilizer for delivery at a target price of N5,500 per 50kg bag, recently reduced to N5000 per bag.
Speaking on the impact of the programme, Orji said there were only four functional fertiliser plants in the country when the programme started.
He said, “When we started, there were barely four blending plants working in Nigeria. But today, we have 32 plants with more than seven million tonnes of installed capacity. We have created tens of thousands of jobs because of this programme.
“We have saved this country foreign exchange because NSIA imports all the raw materials and Central Bank gives us the foreign exchange to import. So you cannot now use this programme to start playing foreign exchange games.”
Orji added, “There are people who don’t like this and who are fighting and pushing back but they cannot be allowed. We have gone from four plants to 32 and by the end of this year, we will have 40 blending plants in Nigeria.
“That is massive investment and we want to get to the point where our blending plants will start exporting to Niger, Chad and other neighbouring countries in Africa because we have the capacity to do that.”
According to him, the Authority is targeting the production of 12 million bags, this year, under the PFI; and another eight million bags, under non-PFI products.
