Abubakar Kyari, the Minister of Agriculture and Food Security, has called on NNPC Limited to allow Dangote Fertilizer and Indorama Fertilizer to buy gas using the Nigerian currency, the naira, in order to reduce the cost of fertilizer.

During a sectorial debate in the House of Representatives on Tuesday, Kyari presented himself before lawmakers to provide updates on the ongoing food crisis in the country.

Highlighting the issue of fertilizer costs, Kyari attributed it to gas suppliers demanding payment in US dollars.

“We have engaged with two major fertilizer producers, Dangote Fertilizer and Indorama Fertilizer. Gas is the primary and only feedstock for urea production. To our surprise, gas is priced at the international market rate and in dollars. We have discussed the unavailability of gas with NNPC Limited,” Kyari stated.

“We have raised the issue with NNPC, and they have agreed to review the pricing. This is a local resource, a resource given by our country. Why should it be priced at an international rate?”

Kyari further explained that many fertilizer plants are not operating at full capacity due to the high demand for dollars. He emphasized that Dangote and Indorama are obligated to supply 35 percent of their total output to the domestic market but have not consistently fulfilled this obligation.

“The 35 percent they are required to supply is sufficient to meet our local needs, but they have not been doing so, primarily because they lack access to gas. Some of these plants have the capacity to produce 8,000 metric tonnes per day, but they could handle more,” he added.