Nigeria Fertilizers Market Research Report: Forecast (2025-2030)

Market Definition

Fertilizers help in the development and growth of the plant by providing important nutrients to the soil. These fertilizers contain various nutrients like phosphorus, nitrogen, and potassium, which supply the required elements to plants through roots. It is basically of two types, chemical fertilizers and bio-fertilizers. Chemical fertilizers are made with artificial chemicals such as nitrogenous and phosphate fertilizers, whereas bio-fertilizers are made up of natural products. Fertilizers are essential to modern agriculture because they increase crop yields and promote food security.

Market Insights & Analysis: Nigeria Fertilizers Market (2025-30):

The Nigeria Fertilizers Market size is valued at around USD 1.2 billion in 2024 and is projected to reach around USD 1.4 billion by 2030. Along with this, the market is estimated to grow at a CAGR of around 4.89% during the forecast period, i.e., 2025-30. The increasing agricultural activities in the country are driving the fertilizer market. The Nigerian government has also taken several initiatives like the National Fertilizer Quality Control Act 2019 aiming to amplify the production rate of agricultural products. These initiatives are fueling the demand for fertilizers to enhance soil quality and improve crop yields.

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Moreover, the government initiatives are attracting many local and foreign investors, providing a considerable opportunity for fertilizer manufacturers by offering subsidiary plans to increase sales. The Partnership for African Fertilizer and Agribusiness (AFAP) is proposing the creation of a special government delegation, requesting potential leaders in the industry for investment in fertilizer production in the nation.

The rising production of fertilizer will benefit the agriculture sector to meet the food demand. Furthermore, organic fertilizers are popular in the Nigeria Fertilizer Market. Farmers prefer plant & animal manure-based compost over traditional fertilizers as they improve soil fertility and enhance crop performance. The Nigerian Fertilizer Market is also experiencing a notable shift towards collaboration between private fertilizer manufacturers and the government. The collaboration offers a broader range of fertilizers that can meet the requirements of specific crops and conditions. For instance, IFC and Partners Back Indorama in Nigeria with USD1.25 Billion for Fertilizer Production. This trend is providing ample growth opportunities to the various startup companies in the fertilizer manufacturing sector.

Nigeria Fertilizers Market Driver:

Growing Agricultural Sector Drives the Fertilizer Demand – The Nigerian fertilizers industry is driven by the growing agricultural sector. The nation is among one of the largest food producers in Africa with 70.8 million hectares of agricultural area driving the demand for fertilizers. The consumption of fertilizers in 2023 was approx. 1.64 Million metric tons with 18.6kg per hectare. The rate of consumption of manure especially carbamide & Ammonium Sulphate has risen by 26% in the period 2022-23 despite the increased price. Also, the total production of urea in Nigeria rose by 6% from 2022 to 2023, indicating the potential growth and demand for fertilizers in Nigeria.  Various urea manufacturing facilities in Nigeria such as Notore, Indorama, and Dangote are producing urea with a capacity of 6.5 million tons. Consequently, the rising agricultural demand creates a robust environment for the fertilizers industry. For instance,

• August 2023, Dangote Fertilizer announced to enrich its urea production capacity to 3 million metric tons every year. This action reflected the company's response to the rising demand for composts driven by the agricultural sector's need to enhance productivity for the rising population.
• April 2023, Notore Chemical declared to raise its capacity for producing fertilizer by 25% in response to the growing food need. The company emphasized the need for additional fertilizers to ensure food security.

Nigeria Fertilizers Market Challenge:

Market Volatility Due to High Inflation – Nigeria has encountered a highly increasing inflation rate of 34.2 % in June 2024 from 22.8% in June 2023.  Fluctuations in raw material prices for urea and ammonia due to the economic instability have disturbed the Nigeria Fertilizers Market. Additionally, the fluctuating exchange rate and degradation of the monetary value of Nigeria create an obstacle to purchasing raw materials. This is difficult for local farmers to afford them at a higher price with added taxes. This market volatility is developing uncertainty in crop planning and also hampering the purchasing power of farmers. The increasing cost of raw materials is a major challenge for fertilizer manufacturers to meet the market demand, ultimately reducing the potential crop yield and increasing economic pressures in Nigeria. For instance,

• September 2023, Rising inflation has caused Indorama Eleme Fertilizer to report higher production costs which had impacted their pricing strategy and ability to compete in the market. The business is searching for strategies to keep supply levels for farmers while stabilizing prices.

Nigeria Fertilizers Market Trend:

Rising Inclination for Sustainable Fertilizers – Sustainable fertilizers are in global demand thus Nigerian government is also promoting eco-friendly products in agriculture. As the awareness of environmental issues is expanding among Nigerians, the inclination towards these agricultural fertilizers is increasing. The trend is also being supported by regulatory bodies through various partnerships and the Fertilizer Control Act.  Strict guidelines are being implemented by regulatory bodies to improve soil health and restrict greenhouse gas emissions. The increasing production in the agriculture sector pushes the demand for fertilizers to enhance grain harvest as they are made of plant materials and animal manure. Nigerian entrepreneurs would take global benefit of this trend by developing sustainable and bio-based fertilizers that meet both environmental goals and agricultural global demand. Ultimately, the trend towards organic fertilizers is pushing the market for innovating sustainable alternatives.

Nigeria Fertilizers Market (2025-30): Segmentation Analysis

The Nigeria Fertilizers Market study of MarkNtel Advisors evaluates & highlights the major trends and influencing factors in each segment. It includes predictions for the period 2025-2030 at the national level. Based on the analysis, the market has been further classified as:

Based on Product:

• Complex Fertilizers
• Straight Fertilizers
  • Nitrogenous Fertilizers
  • Phosphatic Fertilizers
  • Potash Fertilizers
  • Secondary Macronutrient Fertilizers
  • Micronutrient Fertilizers

With over 50% of the market share complex fertilizers are the market leaders in Nigeria. Since they are made in granular form and contain multiple nutrients they are reasonably priced. These include nutrients like nitrogen phosphorus and potassium (NPK) that are vital for crops. To manage crop nutrients more effectively and conveniently, farmers give priority to complex fertilizers. Nigeria's fertilizer industry is led by this segment as a result of consumer preference for a greater focus on improving soil health and raising agricultural productivity. Because complex fertilizers give the soil a balanced supply of nutrients to meet the various nutrient requirements of crops they increase crop yield.

Based on Form:

• Dry
• Liquid

Dry fertilizers are the leading segment acquiring approximately 80% of the total market share. These fertilizers are cost-effective and easy to handle as it is available in granulated and powdered forms such as; Urea. The dry fertilizers are mixed directly into the soil facilitating nutrients to reach every part of the plant. It can be easily incorporated into the soil and dissolved with water, making it suitable for a variety of crops and soil conditions. Thus, farmers are using dry fertilizers in large-scale agricultural operations. The availability of different formulations such as complex and straight fertilizers in the market further increases the appeal of dry products.

Nigeria Fertilizers Industry Recent Development:

• August 2024: Nigeria launches Africa's largest fertilizer plant with an investment of around USD 2.5 billion in Lagos. With excess capacity to export to other African markets and the rest of the world, the new plant will enable Nigeria to become self-sufficient in the production of fertilizer.
• July 2024: OCP Africa and the IITA signed an Agreement to enhance sustainable agricultural practices. The collaboration also aims to enhance soil health and agricultural productivity across the region.

Gain a Competitive Edge with Our Nigeria Fertilizers Market Report       

1. Nigeria Fertilizers Market Report by MarkNtel Advisors provides a detailed & thorough analysis of market size & share, growth rate, competitive landscape, and key players. This comprehensive analysis helps businesses gain a holistic understanding of the market dynamics & make informed decisions.
2. This report also highlights current market trends & future projections, allowing businesses to identify emerging opportunities & potential challenges. By understanding market forecasts, companies can align their strategies & stay ahead of the competition.
3. Nigeria Fertilizers Market Report aids in assessing & mitigating risks associated with entering or operating in the market. By understanding market dynamics, regulatory frameworks, and potential challenges, businesses can develop strategies to minimize risks & optimize their operations.

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