By Mohammed Bello Doka
During a recent session in the House of Representatives, Agriculture and Food Security Minister Abubakar Kyari raised concerns about the high cost of fertilizer production in the country. Kyari emphasized the need for NNPC Limited to consider allowing major fertilizer producers, such as Dangote Fertilizer and Indorama Fertilizer, to purchase gas in local currency to mitigate expenses.
Highlighting the reliance on gas as the primary feedstock for urea production, Kyari expressed dismay over the pricing of gas at international rates in dollars. He disclosed engagements with NNPC Limited to address this issue and explore possibilities for pricing gas in the local currency to support domestic fertilizer production.
Kyari reiterated the importance of Dangote and Indorama fulfilling their commitment to supplying 35% of their output to the local market. He noted that operational constraints, driven by the demand for dollars, have hindered these fertilizer plants from operating at full capacity. The minister emphasized the potential of meeting domestic fertilizer demands with the existing capacity if gas supply challenges are resolved.
Kyari's call for selling gas in naira to local fertilizer producers aims to lower production costs and boost domestic supply to address the ongoing food crisis in the country.
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