Nigeria’s fertiliser makers export N856bn worth of urea in first quarter

Fertiliser manufacturers in Africa’s most populous country have seen a boost in their urea exports in the first quarter of 2025 on the back of increased demand and a weaker naira.

Data from the National Bureau of Statistics showed that urea’s export value for the first three months of the year amounted to N856 billion, representing 4.15 percent of the country’s total exports for the period.

This is almost four times higher than the N240.6 billion worth of urea exported in the corresponding period of 2024.

“Our urea production has been on the increase, and there is strong demand for the commodity,” said AfricanFarmer Mogaji, project manager team lead at AfricanFarmer Hub.

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“Fertilisers are critical for food security and economic stability, so there will always be a growing demand for it,” Mogaji noted.

“The naira devaluation is also responsible for the surge in the export value of urea,” he added.

Nigeria produced 3.7 million metric tons of urea in 2024, according to data from Africa Fertiliser. The country exports the bulk of its urea as smallholder farmers have a strong preference for the NPK blend – another type of fertiliser.

The top three destinations for Nigeria’s exports, based on the value, were Brazil, the United States, and India, out of the 112 countries across the Americas, Asia, Europe and Oceania regions, and Africa.

Despite Trump’s 14 percent tariffs on Nigerian exports to the U.S., the country’s urea would compete favourably as major competitor, Algeria, is slapped with a higher levy of 30 percent.

Aliko Dangote, founder of the Dangote Petroleum Refinery, in an investment conference in Lagos, said Dangote Fertiliser, which began commercial operations in 2022, shipped 37 percent of its 3 million metric tonnes of urea production to the United States.

Last year, the International Finance Corporation (IFC), in collaboration with partners, supported Indorama Eleme Fertiliser and Chemicals Limited with a $1.25 billion financing package to boost its fertiliser production.

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The investment will allow Indorama to ramp up its fertiliser production and develop a port terminal for exports, supporting food security across regional and international markets while fostering job creation in Africa’s most populous nation.

Urea is the fourth most exported commodity period in the first three months of the year, after petroleum oils, liquefied natural gas, and other petroleum gases.

Nonye Ayeni, executive director and CEO of NEPC, stated in February that cocoa and urea are the top contributors to the country’s revenue in 2024.

Ayeni attributed the growth in urea exports to increased production, and improved global demand supported by economic recovery and strategic trade partnerships.