According to the Federal Government, the reasons for higher fertilizer prices are an increase in the cost of natural gas, a component required in fertilizer production, and post-COVID-19 shutdowns of key raw materials in manufacturing plants.
According to NAN, this was revealed by Nigeria’s information minister, Lai Mohammed, at a press conference at the National Press Centre in Abuja on Thursday.
The minister responded to former Vice President Atiku Abubakar’s claim that farmers are now paying 200% more for a bag of fertilizer.
What the minister is saying
According to the minister, the reasons for the increased fertiliser costs, which have risen by 110 to 150%, include a threefold increase in the cost of natural gas, a primary feedstock in fertiliser production, and post-COVID-19 shutdowns of key raw materials manufacturing plants.
He also blamed sanctions levied against Belarus and Russia due to Russia’s invasion of Ukraine and the impact of significant domestic inflation on global and in-country logistics and transportation of fertiliser raw materials.
He stated that the current administration negotiated a fixed price of $290/MT for phosphate and a fixed discount of $15/MT for potash from the governments of Morocco and Russia, which were purchased under the Presidential Fertilizer Initiative (PFI) for four years between 2017 and 2020.
He noted that from 2021, upon the restructuring of PFI, raw material purchases were undertaken at globally-traded prices.Â
He said;
Phosphate prices increased 332.7 per cent from $290/MT in 2017 to $1,255.0/MT in 2022; Potash prices rose by 364 per cent moving from $256.0/MT in 2017 to $1,187.5/MT in 2022.Â
Urea prices rose by 246 per cent from about $300/MT in 2018 to $1,037.5/MT in 2022.Â
Under this development, no magic can keep the price of fertiliser at what it was before the astronomical increase in the cost of production.’
He stated that Atiku’s statement was;
 unfortunate and a reflection of total lack of understanding of the issues at stake.Â
Shockingly, the former vice president seems to know little or nothing about the Buhari administration’s unprecedented efforts to make fertiliser available at affordable prices to Nigerian farmers.Â
He also seems to know little or nothing about how global developments have negatively impacted on the price of fertiliser today, when he said ‘farmers now pay 200 per cent more for a bag of fertilizer – if they see it – than they did in 2020.Â
He noted that the Presidential Fertiliser Initiative (PFI) delivered on key outcomes, including over 30 million bags of 50kg NPK 20:10:10 equivalent during the project period and price reduction on fertiliser from over N10, 000 to under N5, 500.Â
Over its 5-year run, the programme succeeded in increasing the number of blending plants from only four to 72 through the rejuvenation of 68 moribund blending plants, he added.
Happening Now: Honorable Minister of Information & Culture, Alh. Lai Mohammed addresses a Press Conference at the National Press Centre, Abuja. pic.twitter.com/rVOU4hU6MC
— Fed Min of Info & Cu (@FMICNigeria) September 22, 2022
