Nigeria had to buy emergency supplies of Canadian potash in April after the country was unable to import the key fertilizer from Russia due to the impact of Western sanctions, said head of the Nigerian Sovereign Investment Authority (NSIA), Uche Orji.
He however declined to comment on prices but spot prices as of Tuesday was over 250% for deliveries to West Africa compared to last year, according to commodities pricing agency Argus Media, dealing a further blow to the country’s finances.
The move shows one of many unintended negative consequences of sanctions to punish Russia for its invasion of Ukraine, which it calls a “special military operation”.
The International Monetary Fund said last week that the invasion had delivered a further “huge negative shock” to sub-Saharan Africa, driving food and energy prices higher and putting the most vulnerable people at risk of hunger.
“Russia was unable to deliver so we bought a spot from traders in Canada. The Canadian High Commission in Nigeria helped start the conversation with producers,” Orji told Reuters.
Orji said Nigeria has enough potash inventories to cover 40% of blending demand and bought three cargoes of Canadian potash, which should arrive within the next month. Normally, the country takes five Russian cargoes a year.
Russia’s Uralkali, a major global producer of the crop nutrient, has been Nigeria’s exclusive supplier since 2019.
The price of potash has been on the rise since last year after the EU imposed some sanctions on Belarus, the world’s third biggest producer after Russia and Canada.
Nigeria imported about 200,000 tonnes of potash last year, one of three key ingredients for fertilizer blending, according to the Fertilizer Producers & Suppliers Association of Nigeria (FEPSAN).
“The Canadian potash will hopefully arrive just in the nick of time for the planting season, which starts as early as end-May in some parts,” said FEPSAN executive director Gideon Negedu. [Reuters]
