Fostering Food Security Through Enhanced Fertilizer Production Examining Policy Frameworks

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Fostering Food Security through Enhanced Fertilizer


Production: Examining Policy Frameworks
Ugwu, Chinyere Nneoma and Okon, Michael Ben
Department of Publication and Extension, Kampala International University, Uganda
Corresponding author: Okon, Michael Ben. Email: okonmick@gmail.com
orcid.org/0000-0001-5585-1134

ABSTRACT
Agriculture is an important tool in poverty alleviation especially in rural areas whose economy mainly relies on
agriculture as a source of income. Nevertheless, Nigeria is to face the food security crisis due to its agriculture
sector which it heavily depends, but food consumption is imported rather than self-produced. Projections indicate
that by 2030 Nigeria’s population will double the 2006 estimation which necessitates increased food production to
meet the growing and urbanizing population needs and to open possibilities of exports. Apart from this, the
country is faced with soil degradation as a result of inappropriate agricultural practices; erosion and gully,
deforestation as well as climate change. It endangers the once dominant subsistent farm economy. The problems
rose above show that there is an urgent need to review the role of fertilizers in food production for better food
security. Proper execution of fertilizer policies becomes a powerful tool towards increasing agricultural
production, malnutrition reduction and poverty alleviation through lowering food prices. Nevertheless, demand
and supply factors like low farmers’ incomes, high market prices due the limited availability of fertilizer and public
policy response also known as price incentives influence the low usage of fertilizers in Nigeria. In view of above
problems, there is an urgent need to have a more holistic approach to sustainably raise agricultural productivity in
Nigeria with a view to averting food shortage.
Keywords: Food security, Fertilizer production, Agricultural productivity, Poverty alleviation, Policy frameworks

INTRODUCTION
Nigeria agriculture and economic development insecure land tenancy, limited access to funds and
exhibits paradoxical nature. Although Nigeria has credit, labor shortage despite high unemployment
huge potential to diversify its oil-dependent rates, and stagnant technology constitute the
economy through agricultural development, hindrances to the nation's agricultural
agricultural sector still contributes about 40 per cent development. Considering the constraints on land
of GDP and 90% of non – oil exports [1, expansion, there is a need for optimal use of science-
2]. Agriculture is still a very effective avenue of based agricultural inputs to improve agricultural
poverty alleviation especially for the rural farm production [10, 3].
families as a good percentage of the population still The Nigerian soil fertility and nutrient depletion is
earns the greater proportion of their income from declining posing challenges to the recent growth of
agriculture [3 - 6]. Agriculture sector besides is its agriculture Farmlands degradation arising as a
another employer, that is more than 70% of the result of the damages caused by wrong agricultural
population, consisting mainly of small-scale farm practices, erosion, deforestation among others,
holders [7]. But Nigeria faces a food security crisis further complicates the issue [8]. This decay
although being the most popular agricultural undermines the once large-scale subsistence-
producer in Africa; a growing population is mostly oriented farm economy putting it at risk of being
depending on importing food products marginalized. Low fertilizer use in Africa contrasts
[8]. Projecting that by the year 2030, Nigeria's with regions such as West Europe and Asia which is
population will double the 2006 estimate, increasing attributed to weak agricultural productivity growth
food production will be required to feed a growing [12]. The amount of fertilizer per hectare, at
and urbanizing population and to capitalize on 13kg/ha, applied in Nigeria, is very low for
potential export opportunities [9]. Issues like achieving agricultural growth, poverty eradication
31
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and environmental sustainability objectives. Sub- demand stimulate and ensure
Saharan Africa have the same problems, since use of availability. Government supported programs to
fertilizers not enough to replenish those nutrients lower fertilizer prices for farmers and managing
that are lost during harvesting [13]. Some of the procurement and distribution programs have been
government efforts in addressing the issues have main tactics [18]. In spite of these efforts, low
achieved little success [14]. Policy interventions fertilizer uptake still exists among small scale
targeted at increasing agricultural productivity in farmers in Nigeria leading to low productivity and
Sub-Saharan Africa must take a holistic view poor farm income. The different policy approaches
covering innovations, modern production by the government have not fully overcome these
approaches, and optimal use of fertilizer and seed challenges; hence, the need for another intervention
[15]. Particularly, fertilizer is a key input to and more creative ways to boost agricultural
improve crop yield and productivity [12, 11, production and livelihoods.
17]. The differences in fertilizer use between Africa Fertilizer Policy in Nigeria
and other developing regions evince the need for Most of the low utilization of fertilizer in Nigeria in
specific policies and programs to tap the benefits of related to demand and supply factors like low farmer
fertilizer usage [18]. The purpose of this paper is to incomes, limited fertilizer availability and high
determine the need for intensifying fertilizer market prices. Yet, fertilizer-linked issues, in turn,
production to advance food security. have also brought public policies to the forefront,
Implementation of fertilizer policies, as an effective leading to the persisting use gap problem. Many
measure, can bring about higher agricultural policy approaches have been adapted to promote
productivity, food security, and growth with high uptake of fertilizer use in smallholder farm systems
poverty reduction effects [19]. The policy reforms in Nigeria [22]. Measures include strengthening
which include privatization and liberalization had monopoly of fertilizer importation and distribution
been introduced in order to maximize subsidies by the state, price controls and subsidies as well as
benefits and promote agricultural development. The credit to farmers through markets, instituting
core objective of this policy, address the immediate import duties, decentralizing purchases and
food security issues while make long-term redistribution as well as market
investments improve productivity. deregulation. However, the constant change in
Nevertheless, the main constraints for smallholder fertilizer policies and the encouragement of a dual
farmers are still the poor soil, small land, low fertilizer market (subsidized and free market) limited
productivity and population growth causing the private sector's ability to take the role played the
pressure on natural resources [20]. Fertilizer use is public sector in. delayed products quality, arbitrage,
still below the recommended limit including FAO and delayed distribution are the persistent problems
and 2006 Abuja Declaration goal of 200kg per through the whole period notwithstanding these
hectare. Population growth and economic policy interventions. Despite numerous changes in
development are the main factors which are pushing fertilizer policies at both the federal and state levels
for the need for more food production and fertilizers in Nigeria over the years, one aspect has remained
use. [21] insisted on boosting food production by consistent: the use of fertilizing price discounts. The
adopting modern technology as population pressure subsidy has been a fulcrum of Nigeria's fertilizer
increases. The evolving population challenges policy and this can be premised on diverse
require the use of newly emerging technologies and perspectives ranging from remedying market
the intensification of the agricultural imperfections and fostering equity. In a competitive
systems. Hence, those challenges call for agriculture market, subsidies tend to generate distortions and
intensification through new technologies adoption. economic inefficiencies, causing net welfare
The important role played by new technologies and deterioration. Hence, in Nigeria and other
innovations in addressing global food security developing countries with the absence of competitive
challenges is widely recognized Governments market conditions, public intervention is viewed as
globally appreciate that the development of food necessary [23]. Also, subsidies could be considered
production is unequivocally a precondition for as an equity issue as they help to reduce income
economic growth and development, more so in the inequality. While debates continue to rage about
developing countries. In their part, Nigeria has continued use of subsidy for equity in circulation and
adopted a lot of policy tools in the past to improve the role of subsidy to reduction of farm gate prices as
fertilizer utilization and productivity. well as the boosting of the effective demand of
The structure of Nigeria's fertilizer policy and fertilizer among smallholder farmers.
market has undergone evolution with successive There are important and persistent defects in
governments using different instruments to create fertilizer production in Nigeria, more particularly
32
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since local manufacture is rather low. In the 1990s, imported and locally produced fertilizers, the public
subsidies have been a major contributor to the sector institutions grappled with issues of
diffusion of and increased area under maize seed quality. Adulterated, misbranded fertilizers,
increase fertilizer technology [24]. Likewise, counterfeits and underweight bags filled with soil
Malawi is a success case of transitioning from being are commonplace in the Nigerian market,
a food aid-dependent economy to an exporter after highlighting the severity of the quality challenge
giving vouchers for subsidized seeds and fertilizers [27]. Next, demand for fertilizer, like any other
to the small-scale producers. agricultural input, is conditional since it largely
Nevertheless, the heavy reliance on pricing subsidy depends on the expected returns that are influenced
compared to other approaches like better farmers' chiefly in the way price responds to market demand
fertilizer management techniques through extension and supply. Agricultural prices are paramount
programs, lower transaction costs through enhanced signposts to farmers in regard to resource
regulatory environment and fertilizer quality control allocation. Nonetheless, some species of fertilizers
have limited the development of the market in are the cause of policy dilemma given their inherent
Nigeria [25]. One of the elements of the properties. Contrarily, despite the fact that fertilizers
Comprehensive Africa Agriculture Development are divisible and theoretically should diffuse rapidly
Program (CAADP) in 2006 which African leaders among smallholder farmers under equilibrium
including Nigeria signed up to, was to improve conditions of agronomic responses and price ratios
fertilizer use to meet the continent's green the situation in reality is the opposite. Fertilizer-
revolution target. Evidently, the Nigerian related expenses make up a large component of
Government saw direct procurement of fertiliser as a production-dependent cash expenses, placing
thing of past and the Nigerian government initiated farmers at financial risk in comparison to costs of
a fertiliser voucher scheme in selected localities to be hybrid seeds. Even after adoption, selection of the
an alternative to subsidy. However, ensuring most appropriate fertilizer types and application
subsidies get to the right people comes with some rates remains a big problem for agricultural research
benefits; this potential still remains negotiable in system owing to complex needs for information
Nigeria. The critics assert that the opportunity cost [28].
of investment in infrastructure development, crop The transmission of price signals becomes difficult
science technologies, extension services, without sound communications and transportation
management systems, production, and financial infrastructure and weakly built market-supporting
market development would give more returns than institutions. This situation increases marketing risks
fertilizer subsidies for the smallholder and expenses which then relatively lead to low
farmers. Pivotal matters under discussion in this fertilizer usage. Supply issues create worries as well
debate are firstly how the government can in this regard, especially the past extensive relying
successfully employ subsidies to smallholder on external source mainly due to large financial
farmers, secondly the needed investments to enhance input to imports and high local prices. In the late
the ability of farmers to benefit from subsidy 1980s and mid-1990s, bulk of supply was domestic
programs and thirdly the role that the existing production which ranged between 46 and 60 percent
private sector network plays in efficiently delivering of the total supply. The situation was aggravated in
the subsidies to the farmers. the early 2000s as all the NPK fertilizers are
Issues Confronting the Sector imported since the National Fertilizer Company of
Several things can explain the underperformance of Nigeria (NAFCON), the sole producing unit, was
the sector as well as weak farmer’s fertilizer closed down for repairs. The Federal Market
application. These include factors that: Stabilization Program (FMSC) was central in
• affect the agronomic potential for fertilizer Nigeria's fertilizer policy receiving a 43 percent of
application; total agricultural capital spending in 2001-
• transform potential into actual demand of farmers 2005. The program gave the budgetary support for
for fertilizers; the fertilizer imports. Moreover, an overvalued
• to find the development of fertilizer supply; and currency for most of the post-1980 period rendered
build up the fertilizer distribution system [26]. the domestic production unprofitable.
Quality assurance in fertilizer production is firstly In addition, limited domestic supplies of organic
given priorities by the policymakers given its manure plus a mobile livestock industry which is
significant role in agronomic response that impacts distinct from crop agriculture made predominant
on the intensity and profitability of fertilizer biomass sources uneconomical with imported
utilization. Despite the national fertilizer policy in inorganic fertilizer. In addition, agroforestry
Nigeria that urges regulation of quality of both techniques remained largely underused. The voucher
33
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(http://creativecommons.org/licenses/by/4.0), which permits unrestricted use, distribution, and reproduction in
any medium, provided the original work is properly cited.
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system was introduced as an alternative model to the sector own, buy, and sell fertilizer in the 1990s. The
government-funded fertilizer subsidy program, the private sector's failure to meet fertilizer demand
goal was to address deadlocks in access to fertilizer necessitated government to bring back the fertilizer
and to ensure that the subsidies went to people that subsidy programmes and re-join the fertilizer
were supposed to receive them. The system is based market. The government from 2001 has covered
on an effective private agro-input dealer network various subsidy levels, starting from 35-41% to
which concurs with what is in the Abuja about 50% via initiatives such as the Growth
Declaration. Enhancement Scheme and the Agricultural
Politics of Fertilizer Policy Implementation Transformation Agenda [33].
The challenges energy-tools assessment endeavours The recent policies and programs, for instance, the
face emanate from the political and economic Agricultural Transformation Agenda (ATA) and the
dynamics that attends fertilizers and agricultural Agricultural Promotion Policy (APP), have become
inputs demand and supply. Despite government the policies and programs with a focus to build on
efforts to increase smallholder farmers' productivity the successes of the past by use of approaches like
through fertilizer adoption and intensified usage mobile phone technology vouchers and agribusiness
policies, limited success has been achieved in practices [8]. However, politics that underlie
converting these efforts into sustained agricultural adjustments made to fertilizer policy architecture is
production, improved rural household income and a critical factor in the overall realization of these
livelihoods [27]. The government initiatives and interventions. The relations and power balances
programs fail to reach many smallholders since they regarding stakeholders such as federal and state
are poorly implemented and incorrectly target them, governments, international donors and NGOs,
mainly in fertilizer policy [28]. A number of agriculture ministers, relevant institutions,
authors have underscored the high cost of Fertilizer Development Program (FDP), and
government spending on fertilizer subsidies [29, 18, fertilizer companies need further exploration for
30]. In the same vein, subsidized fertilizers find their successful delivery and evaluation. Real-time
way into the hands of the private sector who later monitoring and evaluation are key in the smooth
marks them exorbitantly and sell them to the small distribution of subsidized fertilizer, which goes to
holder farmers at a higher cost or exported through show the magnitude of a functioning monitoring and
diverse means of channels to the neighbouring evaluation department in fertilizer policy
country hence resulting into its inadequacies and implementation.
little availability to the smallholders. Governance and Nigeria Fertilizer Policy and Its
The above mentioned challenges highlight the Implementation
inefficiency and ineffectiveness in the The governance issue has been reiterated as an
implementation of the fertilizer policy in Nigeria, essential element influencing Africa’s economic
therefore pointing towards the need of reforms to development [34]. The importance of good
ensure that subsidies reach the targeted beneficiaries governance by recent development policy
and fulfill their purpose of increasing agricultural discussions have been highly valued more in the
productivity and uplifting rural livelihoods. time [35]. This emphasis of governance has two
The transfer of subsidized fertilizer from the public major development approaches as its roots. For
to the private sector poses serious risks which can starters, there is emphasis on the creation of
easily derail government efforts. . Nevertheless, the impersonal and impartial institutions that help in
overall fertilizer use is increased more on average protecting property rights and contracts resulting in
when fertilizers subsidy is administered especially in market exchange, investments and innovations
areas where the private sector has not been [35]. Namely, more and more development
functioning and when carried out with the small initiatives are considered to be ineffective not
family holder farmers who cannot afford fertilizers depending on government policies only but on the
at market prices [31]. Historically, fertilizer policy character of governance as well [26]. Studies have
in Nigeria has gone from state involvement in looked at various aspects of governance with a view
procurement and distribution to central control in to development. [37] in-depth analyzed the
the early 1980s [32]. The Federal Market relationship between governance, economic growth
Stabilisation Program (FMSP) emphasised direct and inequality; while [38] investigated the
government procurement and distribution by state importance of governance and its mechanisms. [39]
governments of subsidised fertiliser, with little Studied in depth different governance mechanisms
participation of the private sector and their effect on human development, and [40]
[27]. Nevertheless, the realization of structural presented how democratic governance influences
adjustment programs in the late 1980s made private economic growth through various channels. [41]
34
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(http://creativecommons.org/licenses/by/4.0), which permits unrestricted use, distribution, and reproduction in
any medium, provided the original work is properly cited.
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Underscored the role of citizens’ access to governance creates regimes that are free from policy
governance mechanisms in the process of syndromes [34]. The indicators including
development, and [42] examined the relations government effectiveness, political stability and
between democratic governance, distribution and instability, control of corruption and regulatory
welfare. The studies show that discriminatory quality significantly determine the country’s
governance mechanisms can act as brakes to performance [34], good governance is associated
development the results of these studies consistently with higher per capita GDP levels and sustained
demonstrate [34, 35]. The African Economic growth rates over time. This underlines the
Research Consortium (AERC) underscored the importance of effective governance both for its own
centrality of good governance in economic growth sake but also for its possible contribution to a
and argued that bad governance generates policy country's economic performance.
syndromes that impede growth, while good
CONCLUSION
Although Nigeria’s fertilizer policy landscape is establishment of favorable policy and market
undergoing transformations, the one constant regulation environments aimed at reducing cost and
feature there has been is reliance on subsidized eliminating risks has delayed market
fertilizer. Yet, despite this justification of subsidies development. Government in Nigeria should
by such grounds as addressing market failures and depoliticize economic policies and improve
equity concerns; these have largely not been governance structures which will strengthen
met. The heavy concentration on input subsidization monitoring and evaluation mechanisms of policies,
while neglecting other alternative approaches such programs and activities. For Nigerian agriculture to
as adaptation of improved fertilizer application be productively sustainable in the long term, a more
techniques through extension programs and holistic approach is a must.
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