Fertilizer procurement, distribution and subsidy policies in Nigeria

Abstract

The study examined the nature of the pricing, distribution and subsidy policies of fertilizer operated by the Federal Government of Nigeria. Secondary data were used for the study. Data used for the study covered the period 1985–2003. Data were analyzed using means, frequencies and percentages. Results show that 84% of the total quantity of fertilizer distributed went to the three Northern geopolitical zones, while only 16% went to the three southern geopolitical zones of the country. An examination of the fertilizer procurement, distribution and subsidy policies in Nigeria between 1976 and 2002 revealed that the policies have been inconsistent. The pricing and subsidy polices operated by the Federal Government of Nigeria are, government monopoly procurement and subsidy on the product, government partial procurement and subsidy on the procured final product only, subsidy at source, and subsidy at source including transportation subsidy to delivery points. It was recommended that the National Fertilizer Company of Nigeria (NAFCON) Onne, Port Harcourt should be revitalized and privatized to enhance local production of the input.

Keywords: fertilizer procurement, distribution, subsidy policies, Nigeria

International Journal of Agriculture and Rural Development Vol. 6 2005: 58-65