Russia and Nigeria’s federal government have inked an agreement for the supply of potash. The deal was signed on Dec. 2 with Uralchem Deputy Chairman Dmitry Konyaev signing on behalf of the Russian government, and Nigeria Sovereign Investment Authority (NSIA) CEO and Managing Director Uche Orji signing on behalf of the Nigerian government, Bloomberg reported, citing Nigeria’s Vanguard News.
According to the report, the deal provides for direct purchase of the nutrient, cutting out agents and reducing the purchase price by “some percentage.” Delivery volumes, if agreed, have not been reported.
The supply agreement has been executed under Nigeria’s Presidential Fertilizer Initiative (PFI), launched in December 2016 in partnership with Fepsan, Nigeria’s fertilizer producers and suppliers association. The PFI is aimed at making fertilizer more available and affordable for the country’s farmers. A key element of the plan has been aimed at the revival and expansion of NPK fertilizer producing capacity. At the time of the launch of the initiative, of the more than 30 blending units in the country, only two or three operated at less than 10 percent of capacity.
Today, according to the report, some 26 fertilizer blending plants are operational in the country, which include some previously non-operational facilities, as well as new builds.
Since the PFI was launched in partnership with Fepsan, fertilizer blends have become available year round, and at significantly lower prices than previously (GM June 29, 2018).
Nigeria signed a similar agreement with Morocco’s OCP SA in 2017 for the supply of phosphate for blending (GM May 19, 2017).