IDEAS home Printed from https://ideas.repec.org/p/fpr/prnote/178596.html

Bridging Nigeria’s fertilizer supply-demand gap for agricultural transformation

Author

Listed:
  • Fasoranti, Adetunji
  • Kirui, Oliver K.
  • Popoola, Olufemi
  • Ali, Samuel
  • Olanrewaju, Opeyemi

Abstract

Nigeria’s fertilizer sector exhibits a persistent disconnect between national supply and farm-level use. Despite rapid growth in domestic production and increased private-sector participation, fertilizer adoption among smallholder farmers remains among the lowest in sub-Saharan Africa. This paper examines the key drivers of Nigeria’s fertilizer supply–demand imbalance and its implications for agricultural transformation. Using national statistics, market data, and policy reviews, it identifies persistent barriers – including high distribution costs, inconsistent government policies, weak extension systems, limited credit access, and poor product quality – that constrain effective fertilizer use. It also assesses how export-oriented incentives and underdeveloped domestic markets influence local availability and pricing. The findings show that expanding production alone is insufficient to achieve meaningful agricultural change. Coordinated market reforms, stronger regulatory enforcement, improved delivery mechanisms, and targeted support to smallholder farmers are needed to improve affordability, access, and agronomic efficiency. The paper concludes with policy recommendations aimed at better aligning the fertilizer sector with Nigeria’s long-term goals for productivity growth and food system resilience.

Suggested Citation

  • Fasoranti, Adetunji & Kirui, Oliver K. & Popoola, Olufemi & Ali, Samuel & Olanrewaju, Opeyemi, 2025. "Bridging Nigeria’s fertilizer supply-demand gap for agricultural transformation," Project notes 178596, International Food Policy Research Institute (IFPRI).
  • Handle: RePEc:fpr:prnote:178596
    as

    Download full text from publisher

    File URL: https://hdl.handle.net/10568/178596
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Druilhe, Zoé & Barreiro-Hurlé, Jesús, "undated". "Fertilizer subsidies in sub-Saharan Africa," ESA Working Papers 288997, Food and Agriculture Organization of the United Nations, Agricultural Development Economics Division (ESA).
    2. Alabi, Reuben Adeolu & Oshobugie, Ojor Adams, 2020. "The Impact of E-Wallet Fertilizer Subsidy Scheme and its Implication on Food Security in Nigeria," Working Papers 0d6ccee6-e47e-484e-b44d-5, African Economic Research Consortium.
    3. Minde, I., 2008. "Promoting fertilizer use in Africa: current issues and empirical evidence from Malawi, Zambia and Kenya," IWMI Working Papers H042064, International Water Management Institute.
    4. Minde, Isaac J. & Jayne, Thomas S. & Crawford, Eric W. & Ariga, Joshua & Jones, Govereh, 2008. "Promoting Fertilizer Use in Africa: Current Issues and Empirical Evidence from Malawi, Zambia, and Kenya," Food Security International Development Policy Syntheses 54509, Michigan State University, Department of Agricultural, Food, and Resource Economics.
    5. Ayoola, Gbolagade & Ayoola, Josephine Bosede, 2016. "The transformation of smallholder agriculture in Africa: lessons in policy experimentation and governance from Nigeria," 2016 Fifth International Conference, September 23-26, 2016, Addis Ababa, Ethiopia 249348, African Association of Agricultural Economists (AAAE).
    6. S. B. Akpan & E. J. Udoh & A. A. Umoren, 2012. "Modeling the Dynamic Relationship between Food Crop Output Volatility and Its Determinants in Nigeria," Journal of Agricultural Science, Canadian Center of Science and Education, vol. 4(8), pages 1-36, June.
    7. Amurtiya Michael & Abdu Karniliyus Tashikalma & David Chinda Maurice, 2018. "Agricultural Inputs Subsidy in Nigeria: an Overview of the Growth Enhancement Support Scheme (GESS)," Acta Universitatis Agriculturae et Silviculturae Mendelianae Brunensis, Mendel University Press, vol. 66(3), pages 781-789.
    8. Olomola, Aderibigbe, 2015. "Understanding the framework for intergovernmental interactions in the implementation of Nigeria’s Agricultural Transformation Agenda," NSSP working papers 27, International Food Policy Research Institute (IFPRI).
    9. Liverpool-Tasie, Lenis Saweda & Olaniyan, Babatunde & Salau, Sheu & Sackey, James, 2010. "A review of fertilizer policy issues in Nigeria," NSSP working papers 19, International Food Policy Research Institute (IFPRI).
    10. Alabi, Reuben Adeolu & Oshobugie, Ojor Adams, 2020. "The Impact of E-Wallet Fertilizer Subsidy Scheme and its Implication on Food Security in Nigeria," Working Papers 57fe94ec-d3ac-402c-a397-9, African Economic Research Consortium.
    11. Ayoola, Gbolagade & Ayoola, Josephine Bosede, 2016. "The transformation of smallholder agriculture in Africa: lessons in policy experimentation and governance from Nigeria," 2016 Fifth International Conference, September 23-26, 2016, Addis Ababa, Ethiopia 249290, African Association of Agricultural Economists (AAAE).
    12. Olamide Emmanuel ABE & Oni Isaac Ojo & Dolapo Christopher Omotoso, 2025. "The Nigerian Political Economy and Agricultural Sector," International Journal of Research and Innovation in Social Science, International Journal of Research and Innovation in Social Science (IJRISS), vol. 9(8), pages 610-621, August.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Houssou, Nazaire & Asante-Addo, Collins & Andam, Kwaw S., 2017. "Improving the targeting of fertilizer subsidy programs in Africa south of the Sahara: Perspectives from the Ghanaian experience," IFPRI discussion papers 1622, International Food Policy Research Institute (IFPRI).
    2. Amurtiya Michael & Abdu Karniliyus Tashikalma & David Chinda Maurice, 2018. "Agricultural Inputs Subsidy in Nigeria: an Overview of the Growth Enhancement Support Scheme (GESS)," Acta Universitatis Agriculturae et Silviculturae Mendelianae Brunensis, Mendel University Press, vol. 66(3), pages 781-789.
    3. Houssou, Nazaire & Andam, Kwaw S. & Asante-Addo, Collins, 2017. "Can better targeting improve the effectiveness of Ghana's Fertilizer Subsidy Program? Lessons from Ghana and other countries in Africa south of the Sahara," IFPRI discussion papers 1605, International Food Policy Research Institute (IFPRI).
    4. Kiratu, Nixon Murathi & Mshenga, Patience M. & Ngigi, Margaret, 2016. "Determinants of smallholder farmers’ perception towards smart subsidies; a case of Nakuru Noth district, Kenya," 2016 Fifth International Conference, September 23-26, 2016, Addis Ababa, Ethiopia 249316, African Association of Agricultural Economists (AAAE).
    5. Emmanuel Olatunbosun Benjamin & Oreoluwa Ola & Hannes Lang & Gertrud Buchenrieder, 2021. "Public-private cooperation and agricultural development in Sub-Saharan Africa: a review of Nigerian growth enhancement scheme and e-voucher program," Food Security: The Science, Sociology and Economics of Food Production and Access to Food, Springer;The International Society for Plant Pathology, vol. 13(1), pages 129-140, February.
    6. Garbero, Alessandra & Songsermsawas, Tisorn, "undated". "Impact of modern irrigation on household production and welfare outcomes: Evidence from the PASIDP project in Ethiopia," 91st Annual Conference, April 24-26, 2017, Royal Dublin Society, Dublin, Ireland 258641, Agricultural Economics Society.
    7. Zinnbauer, Maximilian & Mockshell, Jonathan & Zeller, Manfred, 2018. "Effects if Fertilizer Subsidies in Zambia: A Literature Review," MPRA Paper 84125, University Library of Munich, Germany.
    8. Kasirye, Ibrahim, 2013. "Constraints to Agricultural Technology Adoption in Uganda: Evidence from the 2005/06-2009/10 Uganda National Panel Survey," African Journal of Agricultural and Resource Economics, African Association of Agricultural Economists, vol. 8(02), pages 1-18, August.
    9. Resnick, Danielle & Mason, Nicole, M., 2016. "What drives input subsidy policy reform? The case of Zambia, 2002–2016," IFPRI discussion papers 1572, International Food Policy Research Institute (IFPRI).
    10. Abokyi, Emmanuel & Ahorbo, Gerald & Benin, Samuel & Jimah, Kipo & Johnson, Michael E. & Nasser, Gamel & Owusu, Victor & Taabazuing, Joe & Tenga, Albert, 2013. "Revisiting agricultural input and farm support subsidies in Africa: The case of Ghana’s mechanization, fertilizer, block farms, and marketing programs:," IFPRI discussion papers 1300, International Food Policy Research Institute (IFPRI).
    11. Resnick, Danielle & Mason, Nicole, 2016. "What Drives Input Subsidy Policy Reform? The Case Of Zambia, 2002-2016," Feed the Future Innovation Lab for Food Security Policy Research Papers 246951, Michigan State University, Department of Agricultural, Food, and Resource Economics, Feed the Future Innovation Lab for Food Security (FSP).
    12. Resnick, Danielle & Haggblade, Steven & Babu, Suresh & Hendriks, Sheryl L. & Mather, David, 2018. "The Kaleidoscope Model of policy change: Applications to food security policy in Zambia," World Development, Elsevier, vol. 109(C), pages 101-120.
    13. Beliyou Haile & Carlo Azzarri & Cleo Roberts & David J. Spielman, 2017. "Targeting, bias, and expected impact of complex innovations on developing-country agriculture: evidence from Malawi," Agricultural Economics, International Association of Agricultural Economists, vol. 48(3), pages 317-326, May.
    14. Aogán Delaney & Tom Evans & John McGreevy & Jordan Blekking & Tyler Schlachter & Kaisa Korhonen-Kurki & Peter A. Tamás & Todd A. Crane & Hallie Eakin & Wiebke Förch & Lindsey Jones & Donald R. Nelson , 2018. "Governance of food systems across scales in times of social-ecological change: a review of indicators," Food Security: The Science, Sociology and Economics of Food Production and Access to Food, Springer;The International Society for Plant Pathology, vol. 10(2), pages 287-310, April.
    15. Holden, Stein T., 2018. "The Economics of Fertilizer Subsidies," CLTS Working Papers 9/18, Norwegian University of Life Sciences, Centre for Land Tenure Studies, revised 16 Oct 2019.
    16. Mateusz Filipski & J. Edward Taylor, 2012. "A simulation impact evaluation of rural income transfers in Malawi and Ghana," Journal of Development Effectiveness, Taylor & Francis Journals, vol. 4(1), pages 109-129, March.
    17. De Groote, Hugo & Andam, Kwaw S. & Munyua, Bernard & Spielman, David J., 2010. "Market Segmentation Strategies And Seed Purchasing Decisions Among Smallholders: Preliminary Findings From Kenya," 14th ICABR Conference, June 16-18, 2010, Ravello, Italy 188084, International Consortium on Applied Bioeconomy Research (ICABR).
    18. Jayne, Thomas S. & Boughton, Duncan, 2011. "What Kind of Agricultural Strategies Lead to Broad-Based Growth: Implications For Country-Led Agricultural Investment Programs," Food Security International Development Policy Syntheses 107459, Michigan State University, Department of Agricultural, Food, and Resource Economics.
    19. Resnick, Danielle & Mason, Nicole, 2016. "What Drives Input Subsidy Policy Reform? The Case Of Zambia, 2002-2016," Miscellaneous Publications 246951, Michigan State University, Department of Agricultural, Food, and Resource Economics.
    20. Mather, David & Boughton, Duncan & Jayne, Thomas S., 2011. "Smallholder Heterogeneity and Maize Market Participation in Southern and Eastern Africa: Implications for Investment Strategies to Increase Marketed Food Staple Supply," Food Security International Development Working Papers 118473, Michigan State University, Department of Agricultural, Food, and Resource Economics.

    More about this item

    Keywords

    ;
    ;
    ;
    ;
    ;
    ;
    ;
    ;
    ;
    ;
    ;

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:fpr:prnote:178596. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: the person in charge (email available below). General contact details of provider: https://edirc.repec.org/data/ifprius.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.