How fertilizer supply gaps, constraints shape crop yield in 2017
Ask an average Nigerian farmer to mention one of the challenges confronting him/ her and the response would be ‘access to fertilizer.’ For many years, fertilizer was used as a conduit pipe for draining billions of naira in the country under subsidy-but the farmers rarely get it.
Although there are no accurate and variable statistics of farmers and hectares under cultivation, it is generally estimated that 70% of the Nigerian population (193.3 million according to NBS) are farmers and about 91 million hectares of arable land are available for cultivation.
Last year, farmers in the country had a very difficult experience accessing fertilizer, particularly the Urea component, for their crops because of restriction on movement and supply of the product for security reasons.
To make fertilizer available and affordable to farmers for this year’s wet season, the federal government entered into a bilateral agreement with the Kingdom of Morocco to supply to Nigeria, phosphate (a major component for making NPK fertilizer, to close the gap of about 800,000 metric tonnes of domestic demand.
The Minister of Agriculture and rural development, Chief Audu Ogbeh, recently told journalists in Abuja that the first shipment of the product was being expected in Lagos port by January 27.
Reliable source in the company involved in the shipment, who wouldn’t want to be mentioned, said about 100,000 metric tonnes of the phosphate had arrived the country.
In the words of the minister, “the target we have is just about 700,000 to 800,000 tonnes of fertilizer per annum, but the problem is that we don’t only satisfy Nigeria, our neighbours always come in and take a bit. We can’t deny them entirely but we can satisfy our need first”.
However, many participants who attended the recent fertilizer consultative forum in Abuja organized by the African Fertilizer and Agribusiness Partnership (AFAP) and the Federal Ministry of Agriculture believed lack of accurate data could have under-estimated the local demand with many putting it at 1.2 million metric tonnes
Statistics from Food and Agriculture Organisation (FAO) shows that Nigeria still struggles behind South Africa, Kenya and Egypt using an average of 20kg of fertilizer for a hectare, whereas those countries recorded over 100kg of fertilizer per hectare a situation that affects significantly the quality of the country’s production per hectare.
The 2006 Abuja Declaration on Fertilizer was designed to significantly scale up fertilizer usage and strengthen fertilizer markets in Sub-Sahara Africa, to enable smallholder farmers’ increase their production per hectare, which also leads to increase household incomes by addressing some of the constraints.
Mr. Ayo Balogun, a fertilizer expert while presenting the trends in the fertilizer industry in Nigeria from 1978-2016 in Abuja during (AFAP) forum recently, said the country witnessed tremendous investments in the industry between 2012 and 2016.
He noted that over $4.5 billion private sector investments in the fertilizer sector was the biggest in the history of the country, adding that the production capacities of those investments were far above the country’s local demand.
Mr. Balogun, however, noted that the country witnessed shortfall of about 200,000 metric tonnes in fertilizer supply in the country in 2016 because of the government regulation on distribution of Urea and import restriction, adding that it also triggered rise in the prices of the commodity.
AFAP noted that many private sector participants are already producing Urea more than the nation’s demand adding that Notore has a production capacity of 0.5 million metric tonnes, Indorama 1.5 million metric tonnes and Dangote’s 2.8 million metric tonnes capacity plant, which will start operation next year, will produce a combine capacity of 4.7 million metric tonnes for the local demand estimated between 500,000 Metric tonnes and 800,000 metric tonnes annually.
A 2015 United States Agency the Intentional Development (USAID) and International Fertilizer Development Corporation (IFDC) report on “Developing Competitive Fertilizer Markets in Africa: Policy Lessons from FTF Country Assessments,” says the country needs serious reforms.
It says Nigeria has “Dysfunctional laws and regulations, no clear roles for monitoring and regulations; outdated frameworks, frequent changes in management and directives at federal and state levels; labs and inspection capacity inadequate to deal with adulteration etc.”
It added: “Nigeria has taken a different route from ECOWAS’s approved fertilizer quality regulations and set its own regulatory framework,” adding “Nigerian has issues with soil nutrient depletion, low agricultural productivity, declining arable land and effects of increased global demand for food.
The 2017 rains are almost here and the farmers are ready to go to farm, but will fertilizer get to them early enough?
Engineer O. B. Jatto is the Director of Farm Input Supply, Federal Ministry of Agriculture and Rural Development. He told our reporter in Abuja that the nation was ready to ensure that fertilizer get to farmers early but added that it would rely heavily on the budget and release of funds.
He confirmed that the first batch of the phosphate from Morocco has been supplied to the country, stressing that plans are in advance stage for blending to begin by the off-takers.
Speaking on the restriction on Urea movement by security agencies last year, he said the office of the National Security Adviser, the Federal Ministry Agriculture and the major urea producers (Indorama and Notore) are collaborating in issuing permits to distributors across the country.
On the prices of fertilizer, the director stated that government was working to ensure that fertilizer got to farmers at the price of N5, 000 or even lower.
Indorama and Notore also said they were ready to ensure that farmers had more access to the product for this year’s farming activities.
Dr. Balbir Singh, Head of Agronomy at Indorama Fertilizer & Chemical Limited, said the company produces 1.5million metric tonnes of Urea fertilizer per annum, at a capacity of 4, 000 metric tonnes per day, adding that the product is affordable by smallholder farmers.
“The highest price we sold fertilizer to our distributors was at N6, 300, but we don’t have control over what the final price would be at the final sale point that the farmers can purchase from, we can only advice our dealers to carry out ethical business,” he said.
Dr. Singh explained that when it comes to training, Indorama is into partnership with the Ahmadu Bello University Zaria, Audu Bako College of Agriculture, Danbatta and Federal College of Agricultural Produce Technology, Kano to enlighten and educate farmers.
In the same Vein, Dr. Innocent Okuku, Head, Marketing Services of Notore Company told Daily Trust on Sunday that the company with production capacity of 0.5 million metric tonne was poised to reach farmers wherever they are with enough Urea for this year farming season.
Dr. Okuku said Notore has commenced the distribution of fertilizer in readiness for the rain-fed season, adding that the company will reach more farmers this year with fertilizer.
He, however, lamented that the continue forex scarcity situation in the country will affect the prices of the product because the basic ingredients for making urea are imported. He said it will be difficult to say how much a bag will cost the smallholder farmer.
Also, source at Fertilizer Producer and Supply Association of Nigeria (FEPSAN), an umbrella of fertilizer producers and blenders in the country, said some of their members have already commence blending of NPK in the country.
We are not expecting free fertilizers from FG - Farmers
The President of All Farmers Association of Nigeria (AFAN), Architect Kabir Ibrahim, and other colleagues have debunked insinuations from some quarters that many Nigerian farmers always wanted free farm inputs, among others from the government.
The farmers disclosed this recently in separate interviews with Daily Trust on Sunday, saying the agriculture ministry is not supposed to be giving farmers money but create the enabling environment for them to carry out their business profitably.
According to the AFAN president, “farmers are not expecting free fertilizers but what we are agitating for is that fertilizers should be made available at the right time for the farmers to buy at affordable prices.
Architect Ibrahim said farmers’ interest has been ignited as prices of farm produce are now good, thereby giving them the purchasing power to buy fertilizer and other farm inputs.