By Adedapo Adesanya
As countries continue to face the supply constraints from the ongoing Russian aggression on Ukraine, Nigeria has found succour in Canada to get potash, a key ingredient in fertilizers.
This was disclosed by the head of the Nigerian Sovereign Investment Authority (NSIA), Mr Uche Orji, who further explained that the country has about 40 per cent inventory in stock to cushion the shocks from the ongoing war.
Speaking to Reuters, Mr Orji revealed that 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.
“Russia was unable to deliver so we bought spot from traders in Canada. The Canadian High Commission in Nigeria helped start the conversation with producers,” he said.
NSIA negotiates imports of raw fertilizer materials like potash as part of the Nigerian government’s programme to develop its capacity to produce blended fertilizer and reduce dependency on imports.
Mr Orji said Nigeria has enough potash inventories to cover 40 per cent of blending demand, noting that the country bought three cargoes of Canadian potash, which should arrive within the next month.
This indicates a shortfall as the country takes up to five Russian cargoes a year.
Russia’s Uralkali, a major global producer of the crop nutrient, has been Nigeria’s exclusive supplier since 2019 and Mr Orji said there were ongoing discussions to see if a Russian delivery could still be made.
So far, the potash producer has not been targeted by sanctions so far but Russian businessman, Mr Dmitry Mazepin left the board and cut his controlling stake in Uralchem after he was hit by sanctions from the European Union in March.
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.
Modupe Gbadeyanka