Flour Mills of Nigeria seeks to expand fertilizer business to reach more customers

NIGERIA – Flour Mills of Nigeria (FMN), one of Nigeria’s leading foods and agro-allied groups has said it is looking to expand its fertiliser blending plants into more states outside in a bid to de-risk the concentration of the business in Lagos.

This was revealed by the Group Managing Director, Mr Paul Gbededo, who envisions that the expansion would also enhance the company’s presence and allow for quick delivery of fertiliser to the end-users.

“We have just gained more properties in northern states that will help us cater better for our customers and de-risk the concentration of our business in Lagos,” Gbededo said.

He further noted that, when the board and management of FMN decided to incorporate a fertiliser company in 1997, the goal was to provide quality input for farmers at the right time and right price.

Since then, the group through its wholly-owned subsidiary, Golden Fertilizer Company Limited, has carved a niche in the Nigerian fertiliser market.

“We have just gained more properties in northern states that will help us cater better for our customers and de-risk the concentration of our business in Lagos.”

FMN Group Managing Director – Mr Paul Gbededo

The announcement comes days after OCP Africa, a subsidiary of leading global provider of phosphate and its derivatives in the region, OCP Group, broke ground for the establishment of US$13m Agricultural Centre of Excellence in Sokoto State, Northern Nigeria.

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The facility will comprise of a fertilizer blending plant and a training center for farmers, fertilizer blenders and other stake holders in the agricultural value chain.

Having a production capacity of 200,000 MT per annum, the blending plant is expected to become operational in July 2021.

It has the capability to blend NPK with micronutrients and will leverage on Sokoto State’s large deposits of high-quality phosphate.

Once complete, it will provide direct jobs to 75 persons and contribute significantly towards the achievement of the food security goals of the country.

Meanwhile, the Dangote Group has announced that its US$2 billion granulated urea fertilizer plant which is located at Ibeju Lekki, Lagos state, will start operations before the end of December.

The take-off of the fertilizer plant, which is reputed to be the largest in the world, with its 3 million tonnes per annum capacity, had suffered some setbacks with the opening date leading to its postponement a few times.

The company had projected that the plant would begin operations in May 2020.

The three giant agri-focused companies are all eyeing the region’s fertilizer market size which is projected to grow at a CAGR of 5.1% during 2020-2025.

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