- April 21, 2022
- Presidential Fertilizer Initiative (PFI)
- Central Bank of Nigeria (CBN)
- Nigeria Sovereign Investment Authority (NSIA)
- Ministry of Finance Incorporated (MOFI)
Commencement Date / Closure Date / Completion Date
- The PFI is an ongoing project which commenced in December 2016.
Project Location (Region or State):
- Following the directive of His Excellency, President Muhammad, the presidential Fertilizer initiative ("PFI") began in December 2016 intending to deliver quality fertilizer in time to Nigerian farmers ahead of the wet season. From 2017 to 2020, the program was implemented by NSIA through its wholly-owned subsidiary, NAIC-NPK Limited.
- To make the program more sustainable following its notable success and transformative impact from 2017 to 2020, Mr. President approved the restructuring of the program starting in the 2021 cycle. Mr. President, among other approvals, limits the role of NAIC-NPK to import and sell raw materials to blenders.
- Following the restructuring and divestment, the Special Purpose Vehicle (SPV) 's new ownership now resides with the Ministry of Finance Incorporated (MOFI) with its new name as PFI-NPK.
- PFI-NPK is well underway to deliver 1,000,000MT of equivalent NPK under the 2022 PFI cycle despite the global supply disruptions and escalating costs of raw materials.
Benefits / Impact (Social, Economic & Others):
PFI has supported the fertilizer industry in Nigeria. In the past five years of its implementation, from 2017 to 2021, the PFI program has:
- Resuscitated and established 52 local blending plants across 19 states,
- Facilitated the local production and supply of quality fertilizer at an affordable price
- 2,977,193 metric tons (about 59.5 million 50kg Bags) of NPK 20:10:10 fertilizer,
- Created over 100,000 direct and indirect jobs across the fertilizer Value Chain ("VC"),
- And accrued substantial annual subsidy and FX savings through import substitution.
Project Cost / Size:
- Based on Management Accounts as of 31st December 2021, the size of PFI in raw material sales terms is ₦174,425,806,411.00. This excludes all intra-country logistics costs, limestone/fillers, and blending plant operating expenses.
- Real Sector Support Facility (RSSF): the RSSF loan from the United Bank for Africa (UBA) and Union Bank of Nigeria (UBN) is ₦10,000,000,000.00 and ₦5,500,000,000.00, respectively. The second round of RSSF loans from UBA and UBN is currently being processed to recapitalize by an additional ₦33.4 billion and ₦9.0 billion, respectively.
- NSIA's investment in the agriculture sector primarily seeks to address challenging issues actors face while leveraging its comparative advantage. Specifically, NSIA is keen to support the development of agriculture market infrastructure (hard and soft) in the form of Irrigation & Harvesting systems, Storage, Processing Plants, Supply chain logistics & Distribution, Mechanization, Agri-tech, Power, and to enhance integration further, impact primary agriculture and guarantee food security.
- The fertilizer objective is to deliver commercially significant quantities of affordable and consistently high-quality NPK 20:10:10 fertilizer domestically produced at the right time to Nigerian farmers.
- Federal Ministry of Finance, Budget, and National Planning (FMFBNP)
- Federal Ministry of Agriculture and Rural Development (FMARD)
- Economic and Financial Crimes Commission (EFCC)
- Office of National Security Adviser (ONSA)
- Nigeria Security and Civil Defence Corps (NSCDC)
- National Agency for food and Drug Administration and Control (NAFDAC)
- Standard Organization of Nigeria (SON)
- National Environmental Standards and Regulations Enforcement Agency (NESREA)
- Fertilizers Producers & Suppliers Association of Nigeria (FEPSAN)