We’re focused on fertiliser production – NSIA

Spread the love

The Nigeria Sovereign Investment Authority (NSIA) has insisted that it is focused on fertilizer production as a key component of Agriculture EcoSystem in Nigeria.
In a statement made available to journalists yesterday in Abuja, the agency disclosed that it has been involved in fertilizer production since 2016.
The program involves the provision of the four components as listed above for NPK 20:10:10 Fertiliser and transportation of these components to 11 plants for blending and sale of the products.
“As a transparent institution, the Authority has consistently disclosed its activities and performance in the Agriculture Sector, especially, the Fertilizer business which is implemented through NAIC-NPK Ltd, a wholly owned subsidiary of the NSIA.
“The company is responsible for ensuring production of NPK 20:10:10, a suitable fertilizer for Nigeria’s soil mix comprised of Di-ammonium Phosphate (DAP), Muriate of Potash (MOP), Urea and Limestone granules with the last two components sources locally,” the statement said.
Prior to NSIA’s involvement in 2016, there were 32 blending plants in the country, most of which had been moribund for upwards of a decade. At the beginning of the program, a detailed open book cost model was developed with the fertilizer producer’s association (FEPSAN).
Using NSIA’s financial model, it was determined that use of local blending plants was integral to the substantial reduction in production costs. This led to the accreditation of 11 of these blending plants to participate in the first phase of the programme.
According to the NSIA in its 2017 financial year report disclosed that Year-on-year domestic selling price of fertiliser declined from N9,500-N11,000, depending on the market to N5,500.
“The Authority’s estimated cost differential was N210/bag in 2017 and with the increases in component prices in 2018, we expect these cost differentials to be up to N660. For example, Urea prices, as published by Argus have gone from $180-250/tonne in 2017 to almost $290/tonne in 2018. Still this is significantly lower than in the past when subsidy costs were as high as N3,000/ bag,” the statement further said.
The custodian of Nigeria’s sovereign wealth fund insisted that the agency remained profitable in spite of the challenging economic environment.
It further said that the Authority will continue to operate within its mandate.
“The attention of the Authority has been drawn to reports on social media feeds and some traditional media outlets which inaccurately suggests that the NSIA is operating outside its remit of contributing to the broader economic growth objectives of the country by facilitating domestic production of Fertilizer, a key component in the Agriculture sector of the Nigerian economy,” the statement added.


Spread the love
  •  
    2
    Shares
  • 2
  •  
  •  
  •  
  •  
  •  


Be the first to comment

Leave a Reply

Your email address will not be published.


*


This site uses Akismet to reduce spam. Learn how your comment data is processed.