What we’re doing to bring down fertilizer prices – FEPSAN
Engr. Olusegun Falade is the vice president of the Fertilizer Producers and Suppliers Association of Nigeria (FEPSAN) and the project director for Golden Fertilizer. Daily Trust caught up with him during the IFDC-sponsored Nigeria 2025 NPK Fertilizer Statistics Validation workshop in Kaduna, where he discussed efforts to address the challenges facing the fertilizer industry. The […]
Engr. Olusegun Falade is the vice president of the Fertilizer Producers and Suppliers Association of Nigeria (FEPSAN) and the project director for Golden Fertilizer. Daily Trust caught up with him during the IFDC-sponsored Nigeria 2025 NPK Fertilizer Statistics Validation workshop in Kaduna, where he discussed efforts to address the challenges facing the fertilizer industry.
The International Fertilizer Development Centre (IFDC) and AfricaFertilizer have been collaborating with FEPSAN to bolster the nation’s fertilizer sector. For blenders like you, how significant is the data validation by the NPK Fertilizer Technical Working Group?
The data validation of all blending activities in the country by the Fertilizer Technical Working Group (FTWG) is very important to us. It was one of the proposals consistently put forward in collaboration with IFDC, FEPSAN and other blenders.
I have particularly been at the forefront of ensuring the sustainability of this programme – the FTWG – so that it becomes self-sustaining as we move along. This will ensure that everyone has access to the data they need to make informed business decisions, especially in the fertilizer industry.
A lot of farmers have been complaining about high prices, adulteration and related issues. How is FEPSAN responding to these concerns?
Let me start with the issue of rising prices. Sometimes we look at fertilizer in isolation, but the truth is that prices of almost everything in Nigeria have skyrocketed in the last two years. There are two major reasons for this: the fiscal reforms introduced by the federal government and the uncertainty in the market, which is causing people to make decisions that are not commercially viable.
Fertilizer is not exempt from these pressures. Prices also rise in the global market. You will recall that in 2022, fertilizer prices shot up globally due to the Russia–Ukraine war. The price of MOP went through the roof. The same happened with DAP, which jumped to over $900 per metric ton and even above $1,000 at a point. Even now, it is above $700 per metric ton.
So, when people complain about price increases, we always emphasize that we sell at the price we buy. When prices rise internationally in dollars, they also rise domestically in naira.
However, FEPSAN continues to work to moderate the activities of suppliers so they don’t impose arbitrary prices. If not for these interventions, fertilizer prices would have doubled by now. We have a Price Negotiation Committee in collaboration with the Nigeria Sovereign Investment Authority (NSIA) and the Ministry of Finance Incorporated (MOFI). They have been responsive and are doing what they can to ensure that prices remain moderated.
Even though the effects may not be fully visible now, we believe that by next year, things will begin to stabilize. Raw material supply and availability are also gradually returning to normal.
The federal government is equally working on liberalising access to raw materials to encourage competition in the market. This initiative is still in progress. As you can see, we are all working together to ensure fertilizer prices come down.
What about adulteration?
As one of the leading members of FEPSAN—and the largest blender in the country—we are heavily affected by adulteration. People replicate our bags, put anything inside, and sell it as Golden Fertilizer.
We have found that arresting them or chasing them around the markets does not work because these operations are run by highly organised groups.
What we are now doing is using technology to fight adulteration. There are many technological tools available to curb this menace. Brands must begin to adopt these technologies, and we must also educate farmers on how to verify whether the fertilizer they are buying is genuine or fake.