Nigeria had to buy emergency potash supplies from Canada in April after being unable to import the essential fertilizer from Russia owing to Western sanctions, according to the chairman of Nigeria’s sovereign investment body, NSIA.
NSIA’s head, Uche Orji, declined to comment on prices. However, according to commodities pricing service Argus Media, spot rates for delivery to West Africa are up more than 250 percent from last year, throwing a severe blow to the country’s finances.
The move exemplifies one of the numerous unexpected repercussions of sanctions imposed to punish Russia for its invasion of Ukraine, which it refers to as a “special military operation.”
The invasion, according to the International Monetary Fund, has given a “major negative shock” to Sub-Saharan Africa, driving up food and energy prices and placing the most vulnerable people at risk of starvation.
The added strain comes as many countries continue to struggle with the long-running COVID-19 outbreak.
Nigeria has been grappling with double-digit inflation for years, which accelerated to 15.92 percent last month, and the country’s 200 million people will face even higher food prices this year and next as the agricultural sector passes on the increased costs of imported wheat, diesel, and fertilizer.
“Because Russia was unable to supply, we purchased spot from Canadian merchants. The Canadian High Commission in Nigeria aided at the beginning of the dialogue with producers “Orji told reporters
As part of the Nigerian government’s plan to enhance its capacity to make blended fertilizer, NSIA negotiates the importation of raw fertilizer components such as potash.
Orji stated that Nigeria has enough potash inventories to meet 40% of blended demand and that the country has purchased three cargoes of Canadian potash, which are expected to arrive within the next month. In a typical year, the country receives five Russian cargoes.
Western sanctions, as well as self-sanctioning by many global firms and financial institutions, have wreaked havoc on anyone dealing in Russian-made goods, sending several energy and commodity prices to all-time highs.
Since 2019, Nigeria’s sole supply has been Russia’s Uralkali, a significant global producer of crop fertilizer.
Uralkali did not respond to a request for comment. The Canadian government did not respond right away.
Although the potash producer has escaped penalties so far, Russian tycoon Dmitry Mazepin resigned from the board and sold his majority position in Uralchem after being sanctioned by the EU in March. The majority of Uralkali is owned by Uralchem.
Orji stated that talks were still ongoing to determine if a Russian delivery could be arranged.
Since last year, when the EU put sanctions on Belarus, the world’s third-largest producer after Russia and Canada, the price of potash has risen.
According to commodities pricing firm Argus Media, the price jumped in early March as a result of Russian financial penalties, reaching a high of $1,125 per tonne for products sent to South Africa at the end of April. Belarus and Russia together account for 38% of global potash supply, which is currently in doubt.
According to the local fertilizer group FEPSAN, Nigeria imported roughly 200,000 tonnes of potash last year, one of three main elements for fertilizer mixing. Nigeria imports slightly under 40% of its raw materials, with the balance sourced domestically. Local blended output was 1.5 million tonnes last year, nearly equaling domestic consumption.
“The Canadian potash should arrive just in time for the planting season, which can start as early as the end of May in some areas,” FEPSAN executive director Gideon Negedu said, adding that the organization has the policy to prioritize crops that require more potash.
