Investor Presentaiton
Presidential Fertilizer Initiative (PFI)
Project Objectives
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Nigeria
Sovereign
Investment
Authority
The PFI objective is to deliver commercially significant quantities of
affordable and consistently high quality NPK 20:10:10 fertilizer at the right
time to Nigerian farmers.
The programme commenced in 2017 with an initial production target of
20million bags of NPK 20:10:10 fertilizer, and was subsequently revised to
deliver 10million bags to farmers at a price of #5,500.
Preparation for 2018 PFI has begun with a similar objective and production
target
Benefits of the initiative include:
Subsidy elimination - estimated #50bn savings in budgetary provisions
for fertilizer subsidies in 2017. Projected #150bn cumulative savings over
three years from 2017.
Import substitution - Estimated foreign exchange savings of US$150mn in
2017. US$450mn in cumulative savings over three years by maximizing
local content.
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Food security the increase in food production will enhance national
food security and reduce food-induced inflation.
Target
Project Description
Deliver high quality NPK 20:10:10 fertilizer on-time and at
affordable price of #5,500 per 50kg bag (30-40% lower than
market price).
Create thousands of jobs by reviving the local blending plants.
Rationale
Lack of resources for subsidies.
Only 30% of inputs are imported. The rest are locally sourced.
Moribund blending plants can be revived to create jobs.
The MoU with Morocco has led to reduced prices for
diammonium phosphate (DAP).
NSIA to execute the project in partnership with FEPSAN
Project SPV (NAIC NPK) to source and import raw materials.
Contract local blending plants.
Agro-dealers and government to procure from blenders.
Strategy
Project Update
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Production of 10 million bags of NPK 20:10:10 fertilizer for 2018
о 2 batches of 4 million bags each and 1 batch of 2 million bags
Sale of 6.3 million bags of NPK fertilizer in 2017
o Enough raw materials leftover from 2017 to produce and sell over 3 million bags of NPK fertilizer for 2018.
Factory gate price of #5,000 per 50kg bag
О Retail price to farmers at #5,500 per 50kg bag
Sales for PFI 2018 to begin last week of February
。 Delivery to both State governments and agro dealers
Concluded arrangements for #25 billion CBN RSSF through UBA
О First tranche of N5 billion has been disbursed.
N5,500
FGN
TIPANO
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A request has been made to CBN for second tranche of N10 billion.
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