Fertilizer procurement by the federal government and implement a uniform subsidy of roughly 75 percent 16 in reality, the subsidy was closer to 80-85 percent, at a cost. We examine how the previous fertilizer subsidy program in nigeria (fmsp) affected the demand for commercial fertilizer we apply an endogenous double hurdle model to a pseudo-panel and cross. The federal government of nigeria through the debt management office of the federal ministry of finance recently issued sovereign guarantees to banks, securing up to 70 percent of the principal of loans granted by banks to agro dealers in nigeria's agricultural sector. The federal government has expressed hope that interest rates on agriculture lending can still be reduced to five per cent from the nine per cent approved by the central bank of nigeria (cbn) to encourage the growth of agricultural sector. An agricultural subsidy (also called an agricultural incentive), is a governmental subsidy paid to agribusinesses, agricultural organizations and farms to supplement their income, manage the supply of agricultural commodities, and influence the cost and supply of such commodities.
International food policy research institute public expenditure on agriculture and fertilizer (federal government only) source: calculated by authors based on mogues et al (2008. Although unlike nigeria that has totally eliminated subsidy from the system, reportedly, ghana's increased consumption was driven by a spike in government subsidy programmes. Prior to december 2016, nigeria's stock of blended fertilizer was shipped into the country as fully-finished products, even though urea and limestone, which constitute roughly two-thirds of the component of each bag, are available locally.
Read government fertilizer subsidy and commercial sector fertilizer demand: evidence from the federal market stabilization program (fmsp) in nigeria, food policy on deepdyve, the largest online rental service for scholarly research with thousands of academic publications available at your fingertips. Subsidy is a benefit given by the government to producers or distributors in an industry to prevent the decline of that industry with subsidy , the government aims is to change the relative price the benefits of subsidy is it helps in re-distribute income, helps the firms to complete and farmers to survive in these competitive world. Fertilizer subsidy under the federal market stabilization program (fmsp) in nigeria historically, fertilizer subsidies accounted for about 30% of the total federal budget for agriculture in nigeria, although the federal government generally allocated less than 3% of its budget to agriculture ( mogues et al, 2012 . Nigeria, between 1991 and 1992, the fertilizer subsidy cost, as a percentage of the national budget, ranged from 168% in 1991 to a high of 427% in 1992 (ifdc.
A local potato farmer in the federal capital territory (fct) and president of the potato farmers association of nigeria (pofan), chief dan okafor sees the removal of the subsidy by government as a. 2 in 2008 in no state did the average farmer have access to sufficient fertilizer for one hectare table 1: 2008 state government fertilizer subsidies. Nigeria was the study area data used in the study were from both secondary and primary sources data on annual allocations to agriculture, fertilizer subsidy (naira) from 1976-2006. 2 types of fertilizer subsidies •traditional (asia) -government support for production, importation and distribution of fertilizers.
The nigerian government recognized early on that hard-won subsidies—so crucial to supporting smallholder farmers—would have little impact if they weren't getting to those who needed them most that's why our agricultural ministry launched the 2012 growth enhancement support scheme, which used mobile technology to transfer fertilizer. Few empirical studies, if any, exist on the effect of targeted subsidies on private input demand in nigeria or west africa consequently this study begins to fill this gap by estimating the effect of a targeted input subsidy on farmer participation in the private fertilizer market in nigeria. 1 1 introduction in the last two decades, many countries in sub-saharan africa (ssa) have re-introduced fertilizer subsidy programs the goals of these subsidies in countries like nigeria have often. Abstractthis study investigated the determinants of farmers' access to fertilizer under fertilizer task force distribution system in kogi state, nigeria a multi-stage random technique was used to select 160 farmers for the study. Presently the nominal fertilizer subsidy levels were 65% 77% and 65% in 1990000 metric tons in 1999-2000 perceived low effectiveness of fertilizer subsidies the federal government again centralized procurement and the subsidy levels were 38% in 1985 the level of subsidy ranged between 25-50% of landed cost of fertilizer.
Home nigeria sokoto announces 70% subsidy on fertilizer about 9,000 metric tones of fertilizer was procured by the government for the 2016 cropping season lagos, nigeria with offices in. Overview of nigeria's fertilizer market ¢ it is the largest in the west africa region, consuming approximately 600,000 to 800,000 product tons per year and accounting for more than 60 percent of the west. Nigeria's sovereign wealth fund stood at $2 billion this month with the investment agency seeking further growth through agriculture and the addition of asset management, the report showed. For the 2017 subsidy programme the following eight (11) fertilizer companies who took part in the bidding process have been selected to participate in the 2017 programme.
Inorganic fertilizer use is claimed to be low in sub-saharan africa, but it is unclear whether using higher rates of fertilizer would be profitable my coauthors and i sought to explore the effect of nitrogen on maize in farms across nigeria to find out. In a five-year study comparing before and after cases, fertilizer use in cameroon, senegal, tanzania, nigeria and ghana declined 25-40 percent, while it increased 14-500 percent in benin, togo, mali, and madagascar.