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HomeFeatureBillions Budgeted, But No Bags: Inside Nigeria’s Failing Fertilizer Schemes

Billions Budgeted, But No Bags: Inside Nigeria’s Failing Fertilizer Schemes

By Boluwatife Adedokun

Despite billions of naira poured annually into Nigeria’s fertilizer subsidy schemes, smallholder farmers—especially those in rural communities—continue to be cut off from access. The federal government’s promise of affordable inputs has been thwarted by corruption, delays, and systemic inefficiencies, leaving the real producers sidelined.

Billions Allocated, Little Impact

Under Nigeria’s Renewed Hope Fertilizer Support Program, about $82.3 million (₦47 billion) was allocated in the 2025 budget through the National Agricultural Development Fund (NADF), aimed at easing access to fertilizer for farmers. This is in addition to earlier efforts under the Presidential Fertilizer Initiative and the Fertilizer Market Stabilization Program, which have collectively seen nearly ₦90 billion invested in fertilizer interventions.

However, Nigeria’s average fertilizer application rate remains a mere 7–13 kg per hectare, according to the Food and Agriculture Organization (FAO), far below the recommended 50 kg/ha and the sub-Saharan average of 18–20 kg/ha. This exposes a troubling disconnect between government spending and real-world usage.

System Riddled with Corruption and Delays

Investigations across multiple states have uncovered diversion of subsidized fertilizer into the open market. A report by Law & Society Magazine highlighted how politicians and middlemen in the North-West cornered supplies and sold them above official prices. In Ondo State, farmers say bags of fertilizer were handed to party loyalists rather than actual cultivators.

The situation is even worse in Kano’s Gabasawa LGA, where farmers say they pay ₦5,500 per bag instead of the official ₦3,500. Others turn to poultry droppings and ash just to feed their crops.

A Voucher System That’s Not Working

In theory, the move from blanket subsidies to e-voucher systems was supposed to target real farmers and limit fraud. But in practice, digital platforms still suffer from ghost beneficiaries, data errors, and limited agro-dealer networks in remote areas.

A 2024 study by Inter-réseaux and AGRA noted that while e-vouchers improved administrative efficiency, they did not fix access or delivery issues, especially in Nigeria. Weak monitoring and a lack of farmer training on how to redeem vouchers further complicated outcomes.

Women Farmers Shut Out

The brunt of these failures is borne by women farmers, who make up a large share of smallholder producers. The Small-Scale Women Farmers Organisation of Nigeria (SWOFON) has criticized the 36% slash in Nigeria’s 2025 agriculture budget—from ₦997 billion in 2024 to ₦636 billion, reducing the sector’s share of the national budget to just 1.28%.

While ₦132 billion was earmarked for fertilizer under NADF, SWOFON says there is no transparency in the distribution, and no assurance that women farmers will benefit.

Private Sector Kept at Arm’s Length

A functional fertilizer market requires a strong private sector to reach last-mile users. But policies in Nigeria have instead pushed agro-dealers to the margins.

The IFDC found that many local dealers lack support, training, and timely stock, especially with inconsistent supply chains and government crowding out the market with politically driven distributions.

Even the Federation of Fertilizer Producers and Suppliers of Nigeria (FEPSAN), which has supported over 90 blending plants, admits that logistical failures and counterfeit products continue to threaten quality and farmer trust, as reported in Vanguard.

What Experts Are Saying

Analysts have called for the complete restructuring of the fertilizer subsidy model. A report by ActionAid Nigeria recommended the following:

  • Fully digitized and transparent voucher systems tied to verified farmer databases.

  • Decentralized procurement that empowers private dealers and removes political bottlenecks.

  • Robust data tracking, including gender and regional disaggregation.

  • Complementary services, like credit access, agronomic training, and input bundling.

  • Investment in rural infrastructure, to make fertilizer more accessible and affordable.

Without these measures, the billions allocated will continue to vanish without impact.

A Budget Boost Without Guardrails

While the 30% increase in NADF allocation is welcome on paper, it risks repeating past mistakes unless tied to performance tracking and inclusion. Transparency groups warn that without third-party monitoring and farmer-led reporting tools, the funds will only reinforce elite capture.

Groups like SWOFON and BudgIT continue to advocate for better tracking tools and participatory budgeting, but government agencies remain slow to adopt open systems.

A Future Built on Accountability

Nigeria’s fertilizer story is no longer one of scarcity, but of failure to deliver equitably. Despite domestic production and heavy investment, the country’s most vulnerable farmers—those who till the land under the scorching sun—are watching fertilizer slip out of reach.

Reforming the subsidy model is not just about economics; it’s about justice. Until policies are designed to serve farmers, not politicians, Nigeria’s quest for food security will remain out of reach.

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