The Fertilizer Producer and Suppliers Association of Nigeria (FEPSAN) has welcomed the policy of government to restrict fertiliser import into the country.
Mr Gideon Negedu, liaison manager of the association in an interview with Daily Trust in Abuja said Nigeria has more than enough local capacity to blend any NPK it wants, stressing that it will be unwise for the country to keep bringing in the finished product.
“Now, where we as an association have problem is with open market. We recognize that the blending industry is still a very young industry that cannot compete with imported fertilizer, so we have to ask and push that let us have a ban that will help the industry to grow, that way we will attract local investment.
“Today we have what we call the Presidential Fertilizer Initiative where we revived dead blending plants through private sector money because government created the environment and we key into it, which led to the revival of almost 18 blending plants producing a lot of the NPK that we are using today,” he stated.
He, however, clarified that the circular should not be a blanket ban on all fertilisers because the raw materials used in the production of the fertilisers are also fertiliser in themselves.
“It is commendable to protect these new investments that have made Nigeria today self-sufficient in NPK,” he said.
Reacting to the development, Prof. Uche Uwaleke, the Head of Department, Banking and Finance, Nasarawa State University said: “The whole idea of restricting access to foreign exchange with respect to certain items is meant to serve two purposes. First and foremost, it is an import substitution strategy, a form of protectionism if you like, designed to protect domestic firms from unfair competition from imports.
“The second is to conserve foreign reserves. While the first objective is usually achieved through tariffs by the fiscal authorities, this administrative measure by the CBN serves to complement it,” he added.
“Against this backdrop, the decision by the CBN to include fertilizer among the list of restricted items will be positive for the economy. Local fertilizer plants will not only be able to stay afloat and increase output but also create opportunities for more jobs. Some forex will equally be conserved,” he said.
On whether it will have a significant effect on external reserves, he said that remained to be seen, adding that “I think the overriding consideration is to ensure that we do not continue to import products that can be manufactured locally. It is in the spirit of ‘Nigeria first’.”
