How To Start Fertilizer Business In Nigeria

Business Overview

The Nigerian agricultural sector presents a lot of opportunities for personal and national development through employment. In this sector, both skilled and unskilled labour are integrated.

One aspect of the Nigeran commercial agriculture industry is fertilizer business. there are many aspects if this business such as fertilizer sales and distribution. Also, we have organic and inorganic fertilizer production.

Organic fertilizer business is concerned with the conversion of compost or manure derived from decomposed vegetable or plants.

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You can also get this from animal matter or human excreta. The requirement for this business is serious-mindedness, dedication, and hard work.

This business, although a money spinner, is capital intensive. But since it is a well-recognized business, it is always open for support by the government by way of loans and grants. You can also get sponsorship from private firms and the corporate sector.

Basic Requirements For Starting Fertilizer Business

Sound knowledge of fertilizers production and general agriculture is a basic requirement for starting fertilizer business in Nigeria. There are many ways to achieve this, but the most recommended is to network agriculturalists and fertilizer exerts in your locality.

This is followed by a good business plan and a sound understanding of the laws and customs regulating the business. Also, get necessary licenses from the Ministry of Agriculture before you start this business.

Basic Raw Materials For Fertilizer Production

The basic raw materials for producing fertilizer in Nigeria include:

1. Ammonia gas

2. Calcium carbonate

3. Clay and fillers.

4. Phosphate powder

5. Phosphoric acid

6. Potash

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All these fertilizer raw materials may be gotten in Nigeria.

Fertilizer Business Tools and Equipment

Below are the tools and materials for starting a fertilizer business in Nigeria:

1. Different types of fertilizer

2. Extension cords

3. Fertilizing stakes

4. Fuel Cans

5. Ground spikes

6. Hose end ready containers

7. Hoses

8. Plug aerators

9. Radius mower

10. Soil balancer

11. Spiked aerators

12. Water Cans

13. Weeds controllers

Specializations In Fertilizer Business In Nigeria

There are different kinds of fertilizers for different kinds of crops. Fertilizers for crops and flower, for example, are not the same. That is why it is necessary to ask around to know the most wanted type of fertilizer you should go into.

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Types of Fertilizers You Can Market In Nigeria

Fertilizers come in two broad varieties or types. We have organic fertilizers and inorganic fertilizers. Organic fertilizers are derived from organic sources such as bat guano, cow manure, bone meal, organic compost and green manure crop.

We also have inorganic, synthetic or chemical-based fertilizers which are made from different chemical formulations to suit several needs. NPK is one of the varieties of inorganic fertilizers. N.P.K stands for Nitrogen, Phosphorus, and Potassium.

The Need For Proper Feasibility Study

You need to properly research and study the market before going into this business. This will give you the necessary startup guides on fertilizer business operations and management.

It is from here that you will discover your marketing channels. You will also get to know the banned toxic substances for fertilizer production.

Business Planning Phase

Then comes the business plan. This is a documented report which will guide you in establishing his business. it itemizes the needed modalities for functional business operations. It gives a succinct blueprint of the business undertakings.

Business Registrations & Licensing

Being a highly regulated sector, you need proper licensing from the Ministry of Agriculture before you can start this business.

It is also advisable to register this business with the government. In Nigeria here, it is the Corporate Affairs Commission of Nigeria (CAC) that handles that.

However, the fertilizer department of the Ministry of Agriculture in your state of operations will give you the business permit and the operating license. This could be revoked if you are found to have violated the terms of the license.

Renting Your Business Premises

The immediacy of your business to the target market should govern your objectives while scouting for a suitable location. It should also support effective transportation and marketing.

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Sourcing For Raw Materials

There are various sources for the raw materials used in the manufacture of organic fertilizer(s). You can easily get these from abattoirs who custody animal matters.

You can also get the products from poultry farmers as well as sewage management companies. You need a steady flow of these raw materials to stay out of the business.

Packaging and Distribution

Effective packaging is a must in the fertilizer business. this is necessary because of the offensive odour emitted from the product. It is also necessary to guard against spoilage during transportation and movement from place to place.

Marketing, Promotion and Trade Unionism

There are many means of marketing your fertilizer business. you can place adverts on agro-related magazines, workshops, and expos for products promotions.

Additionally, you can advertise on the social media such as Facebook, Twitter, Instagram etc.

You may consider joining some fertilizer bodies in Nigeria such as Fertilizers Producers And Suppliers Association of Nigeria (FEPSAN). This comes with several Membership Benefits some of which are highlighted below.

Become A Member of FEPSAN – Services/Benefits

1. Provides various forms of data for members. This includes but not limited to industry trend data, monthly trade, and market data.

They also provide other priceless pieces of information which assists members to forecast impending fluctuations in the fertilizer industry. With this, members can effectively plan their businesses.

2. provides business development services to members.

3. Provides valuable, timely and reliable pieces of information to members.

4. Builds the capacity of its members, who are company staffs

5. Links members with sources of raw materials as well as markets for selling or obtaining the finished products

6. Helps in collaborative fertilizer publicity, adverts and other forms of promotions

7. Represents the interest of FEPSAN at the Federal, State and local levels

8. Represents FEPSAN at trade fairs, exhibitions, and shows.

9. Helps to develop the database for the Nigerian fertilizer industry

Membership Categories in FEPSAN

Category A: Executive Members

This includes fertilizer manufacturers, importers, and bending plants be they corporate bodies or sole proprietors.

Category B: Regular Members

This class of FEPSAN members includes fertilizer distributors and dealers including individuals, the corporate bodies, and sole proprietors.

Category C: Affiliate Members

This is the category that includes other associations and individuals who are involved in other forms of Agric input supply and marketing.

Amongst these include seeds, agrochemicals, credit, farm tractors, machinery, and equipment, etc. another sector includes bulk handlers; clearing agents; transporters; farmers’ organizations, Agric-commodity trade associations, NGOs, and CBOs.

In this class, we also find the public and private organizations as well as individuals who are involved in the regulation, control, registration, research, development, testing, and use of fertilizer.

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Category D: Honorary Members

These are corporate entities or persons who in the opinion of the Executive Committee, help to promote the cause and interest of FEPSAN.

How to contact FEPSAN:

Office Address: 2nd Floor Bank of Industry Building, 18 Muhammad Buhari Way, Kaduna, Nigeria.

Phone/Mobile: +234 (803) 3174409

Email Address: info@fepsannigeria.com, fepsannigeria@yahoo.com

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