The Nigerian Sovereign Investment Authority (NSIA) has saved $350 million (about N133 billion) by cutting subsidy payments and import substitution after it began implementing the Presidential Fertilizer Initiative.
In a statement by the Authority, after four years of the PFI, the Presidency approved its restructuring, starting this year.
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NSIA said the PFI has delivered 30 million bags of NPK 20:10:10 fertilizer reducing the price from over N10,000 to under N5,500. Equally, 41 blending plants have been revived from just four earlier and creating about 250,000 jobs in the value chain while boosting food security.
The approval was communicated to NSIA in a letter by the Office of the Chief Of Staff to the President in November 2020.
NSIA has become an upstream player while its subsidiary, NAIC-NPK Limited, will be spun off to the Ministry of Finance Incorporated.
Blenders will no longer be paid blending fees as they will recover their costs directly from selling the fertilizer to the market.
Blending plants will also have access to credit from the Central Bank of Nigeria (CBN) while providing foreign exchange window for purchasing raw materials.
The Chairman, Implementing Committee of PFI and Jigawa State Governor, Mohammed Abubakar Badaru said, “The programme has bolstered Nigeria’s industrial base, resuscitated, and strengthened domestic production capacity for fertiliser, eliminated to the huge fertiliser subsidy burden placed on federal government, created thousands of direct and indirect jobs and alleviated the plight of the domestic farmer by ensuring availability of fertiliser.”
Managing Director/CEO of NSIA said: “NSIA is pleased with the Government’s decision and looks forward to seeing the innovation and creativity which will characterize the open market in the sector”.
Chairman, Fertilizer Producers and Suppliers Association of Nigeria (FEPSAN), Thomas Etuh, lauded the initiative.