THE HISTORY

Plateau is the twelfth largest state in Nigeria, with a surface area of 26,899km2. According to the 2006 population census, the State has an estimated population of about 3,178,712.   The unique geography of the State, from which it also derives its name, marked by its relatively mild climatic conditions and its highly fertile basaltic soil formation, make the State suitable for the farming of a wide range of exotic and traditional crops, for which Plateau is distinguished. In the past, different administrations in the State have sought to take advantage of the agricultural opportunities in the State for industrial and economic growth by providing farmers with inputs and incentives.

In 2009, the Plateau State Government went a step further to establish an ultra modern fertilizer Plant in Forom to service the farming community of Plateau State and environs. After acquiring the land, producing the design and commence on the sub-structure, in 2016, the Plateau State Government entered into a Public Private Partnership  with OCI, to complete the project on a build, own and operate arrangement. By this arrangement, Plateau State Government transferred 90% of its interest in the project to OCI, culminating  in the creation of a special purpose vehicle, Plateau Duncan Fertilizer Plan. 

THE ECONOMIC OUTLOOK 

It is a known fact that in spite of the large number of people employed in the agricultural sector,  productivity is low and the farmers are poor. To improve the status of farmers, there has to be increase in  productivity.  For this to be achieved, farmers need access to critical farm inputs and support services like improved seedlings, fertilizers, crop protection products, and other improved agronomic practices.

Although other inputs are equally necessary, the role of fertilizer is very critical  to boosting and increasing yield. This is considering that the World Bank survey shows that Fertilizer consumption (kilograms per hectare of arable land) in Nigeria has steadily declined from 135.5 in 1990 to 17.80 in 2013. This decline is largely due to the closure of NAFCON in 1997,  resulting in steep decline in agricultural production  and earnings.

The restructured Foron Fertilizer Blending Plant under the Plateau Duncan Fertilizer Company is conceived to revamp the agricultural sector. The blending factory which has an output capacity of 80 tons per hour, at a utilization of 80%, will produce about 192,000 tones of blended fertilizer per annum. At the minimum allocation of a 100kg per hectares, the Foron Fertilizer Blending plant will support the cultivation of 1,920,000 hectares per annum. This is expected to impact on the bottom-line productivity of about 2 million farmers within and outside the State, consolidating on the national food security scheme program, creating wealth and multiplying opportunities across the economic divide, while improving living standard for the farmers and bolstering the revenue earnings of the State, with significant increase in its balance of trade.

 

On the raw material end, which include lime stone, urea, potash and Di ammonium phosphate, kaolin among others required to feed the blending plan, 30% will be sourced locally. This will ensure considerable backward integration of the mineral value chain, expand the market and create jobs. The establishment of the blending plant will  also encourage the emergence of a new network of entrepreneurs and distributors within and outside the State.