By Agrobroadcast Team
A disruption in global fertiliser supply triggered by the ongoing Iran conflict is creating new export opportunities for Nigerian producers, as countries rush to secure urea ahead of the next planting season.
The war has disrupted operations across parts of the Gulf region and forced the closure of the Strait of Hormuz, a strategic shipping corridor that handles a significant share of global energy and fertiliser trade. The disruption has affected production and transportation of urea, the world’s most widely used fertiliser, tightening supply in international markets.
Industry insiders say Nigerian fertiliser producers have begun receiving a surge of new orders as buyers search for alternative sources.
“We have seen a steady increase in orders since the Iran war began,” an employee of Indorama Eleme Fertilizer & Chemicals Limited said on condition of anonymity because they were not authorised to speak publicly. “However, we are prioritising our existing customers before accepting additional orders.”
Analysts say the surge in demand could boost Nigeria’s export earnings from urea, as the country remains one of Africa’s major producers of the commodity.
Nigeria currently has three major fertiliser plants operated by Notore Chemical Industries, Indorama Eleme Fertilizer & Chemicals Limited and Dangote Fertilizer Limited. Combined, the facilities have an installed capacity of about 6.5 million metric tonnes, and produced roughly 3.65 million metric tonnes of urea in 2023.
The disruption in global supply has been compounded by rising natural gas prices, a key feedstock used in the production of ammonia and nitrogen-based fertilisers. Gas prices in Europe have climbed more than 50 percent since the start of the conflict, forcing some producers in Europe and the Middle East to scale down operations.
According to Bloomberg L.P., a leading fertiliser manufacturer in Slovakia has already announced a reduction in ammonia production due to the surge in natural gas prices.
Gideon Negedu, former executive secretary of the Fertiliser Producers and Suppliers Association of Nigeria, said the global shortage presents a major opportunity for Nigeria’s fertiliser industry.
“There is increased demand for ammonia and urea globally, and Nigeria produces these nitrogen-based fertilisers,” Negedu said. “For our local urea industry, the current surge in demand is a major boost. Production must increase to meet the rising demand.”
Similarly, Devakumar Edwin, vice president at Dangote Industries Limited, said demand for products from Dangote Fertilizer Limited has grown significantly due to tightening supply in international markets.
“Demand has gone up substantially due to shortages in the global market,” Edwin said in an interview with Bloomberg.
The growing global demand is also expected to strengthen Nigeria’s export revenues. According to data from the United Nations Comtrade database, the country earned about $850 million from urea exports in 2024, shipping approximately 3.2 million tonnes of the product during the year.
However, the surge in global demand is also affecting domestic fertiliser prices. Locally, the cost of a 50kg bag of fertiliser has risen by about 11 percent, increasing from N33,000 to around N36,500 within a week, raising concerns that higher input costs could further drive food inflation in Africa’s most populous nation.