Report Reveals Impact of NSIA-managed Presidential Fertilizer Initiative

The Presidential Fertilizer Initiative (PFI) which took off in 2017 has contributed significantly to the transformation of the agricultural sector in the country, a report has disclosed.

According to the report, prior to the PFI, Nigeria’s fertilizer industry was in comatose, with only five blending plants operating below 10 per cent of installed capacity.

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 WHISTLER stated that the involvement of the Nigerian Sovereign Investment Authority (NSIA) as managers of the initiative have changed the dynamics for the President Muhammadu Buhari administration which hoped to diversify the economy away from oil into agriculture.

Having been invited to serve as programme operator and fund manager, the NSIA subjected the PFI to its own governance processes which ensured accountability and transparency at all stages of the procurement, production, and sale processes.

The PFI is operated under a governance system that subjects its operations to regular audit by PricewaterhouseCoopers, a reputable audit firm. Disclosures on the programme are made on the project in NSIA’s audited financial statements which are published annually on its website following rigorous internal audits and periodic reviews by the Office of the Accountant General of the Federation.

The PFI’s business model, according to insiders, 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 input are imported, consisting of DAP from Morocco and Muriate of Potash (MoP) from Russia 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 (now N5000 per bag from April 2020).

Financial statements on the NSIA website indicate that since the inception of the scheme in 2017 up to 2019, N107 billion has been invested in PFI while another estimated N114 billion is billed to be invested in 2020 - on items that cover raw materials, logistics, contract blending costs by third party blenders among others.