EXCLUSIVE Nigeria buys emergency Canadian potash to exchange misplaced Russian provide

EXCLUSIVE Nigeria buys emergency Canadian potash to exchange misplaced Russian provide

LAGOS, Might 3 (Reuters) – Nigeria had to purchase emergency provides of Canadian potash in April after the nation was unable to import the important thing fertilizer from Russia as a result of affect of Western sanctions, the pinnacle of Nigeria’s sovereign funding authority NSIA mentioned.

Uche Orji, the pinnacle of NSIA, declined to touch upon costs. Nevertheless, spot costs right now are up greater than 250% for deliveries to west Africa in comparison with final 12 months, in line with commodities pricing company Argus Media, dealing an extra blow to the nation’s funds.

The transfer reveals one among many unintended damaging penalties of sanctions to punish Russia for its invasion of Ukraine, which it calls a “particular army operation”.

Register now for FREE limitless entry to Reuters.com

The Worldwide Financial Fund mentioned final week that the invasion had delivered an extra “big damaging shock” to sub-Saharan Africa, driving meals and vitality costs greater and placing essentially the most weak individuals susceptible to starvation. learn extra

The additional strain comes as many nations are nonetheless reeling from the protracted COVID-19 pandemic.

Nigeria has for years been battling double-digit inflation, which quickened to fifteen.92% final month, and its inhabitants of 200 million will face even greater meals prices this 12 months and the following because the agricultural sector passes on the upper prices of imported wheat, diesel and fertilizer.

“Russia was unable to ship so we purchased spot from merchants in Canada. The Canadian Excessive Fee in Nigeria helped begin the dialog with producers,” Orji advised Reuters.

NSIA negotiates imports of uncooked fertilizer supplies like potash as a part of the Nigerian authorities’s programme to develop its capability to supply blended fertilizer.

Orji mentioned Nigeria has sufficient potash inventories to cowl 40% of mixing demand and purchased three cargoes of Canadian potash, which ought to arrive inside the subsequent month. Usually, the nation takes 5 Russian cargoes a 12 months.

Western sanctions and self-sanctioning by many international firms and monetary establishments has created chaos for anybody dealing in merchandise of Russian origin and despatched many vitality and commodity costs to document highs.

Russia’s Uralkali, a serious international producer of the crop nutrient, has been Nigeria’s unique provider since 2019.

Uralkali declined remark. The Canadian authorities didn’t have a right away remark.

The potash producer has not itself been focused by sanctions up to now however Russian businessman Dmitry Mazepin left the board and reduce his controlling stake in Uralchem after he was hit by EU sanctions in March. Uralchem owns the vast majority of Uralkali.

Orji mentioned there have been ongoing discussions to see if a Russian supply might nonetheless be made.

The worth of potash has been on the rise since final 12 months after the EU imposed some sanctions on Belarus, the world’s third largest producer after Russia and Canada.

The worth skyrocketed in early March following monetary sanctions on Russia, hitting a document $1,125 per tonne on the finish of April for product on a delivered foundation to South Africa, in line with commodity pricing company Argus Media. Mixed, Belarus and Russia account for 38% of worldwide potash provides, which at the moment are unsure.

Nigeria imported about 200,000 tonnes of potash final 12 months, one among three key components for fertilizer mixing, in line with the native fertilizer affiliation FEPSAN. Nigeria’s uncooked materials imports meet slightly below 40% of Nigeria’s wants, the remainder is sourced domestically, and native blended output was 1.5 million tonnes final 12 months, almost equal to home consumption.

“The Canadian potash will hopefully arrive simply within the nick of time for the planting season, which begins as early as end-Might in some components,” FEPSAN government director Gideon Negedu mentioned, including the affiliation has a technique to prioritise crops that want extra potash.

Register now for FREE limitless entry to Reuters.com

Reporting by Julia Payne, extra reporting by Reuters; enhancing by David Evans

Our Requirements: The Thomson Reuters Belief Rules.

Supply hyperlink


Leave a Reply

Your email address will not be published. Required fields are marked *