Is Increasing Inorganic Fertilizer Use in Sub-Saharan Africa a Profitable Proposition? Evidence from Nigeria

Inorganic fertilizer use across Sub-Saharan Africa is generally considered to be low. Yet, this belief is predicated on the assumption that it is profitable to use rates higher than currently observed. However, there is little rigorous empirical evidence to support this notion. Using a nationally representative panel data set, and with due recognition of the role of risk and uncertainty, this paper empirically estimates the profitability of fertilizer use for maize production in Nigeria. The analysis finds that inorganic fertilizer use in Nigeria is not as low as conventional wisdom suggests. Low marginal physical product and high transportation costs significantly reduce the profitability of fertilizer use. The paper finds evidence that strategies to reduce transportation costs are likely to have a much larger effect on the profitability of fertilizer use than fertilizer subsidies. Apart from reduced transportation costs, other constraints such as timely access to the product; availability of complementary inputs such as improved seeds, irrigation, and credit; as well as good management practices are also necessary for sustained agricultural productivity improvements.

Bibliographic Details

Main Authors:	Liverpool-Tasie, Lenis Saweda O., Omonona, Bolarin T., Sanou, Awa, Ogunleye, Wale
Language:	English en_US
Published:	World Bank Group, Washington, DC 2015-02
Subjects:	AGRICULTURAL ECONOMICS, AGRICULTURAL EXTENSION, AGRICULTURAL GROWTH, AGRICULTURAL INFORMATION, AGRICULTURAL INTENSIFICATION, AGRICULTURAL MARKETS, AGRICULTURAL POLICY, AGRICULTURAL PRACTICES, AGRICULTURAL PRODUCTION, AGRICULTURAL PRODUCTIVITY, AGRICULTURAL SECTOR, AGRICULTURAL TRANSFORMATION, AGRICULTURE, AGRONOMY, AVERAGE TRAVEL TIME, BUS, CARS, CEREAL VARIETIES, CEREALS, CHEMICAL USE, CLIMATE, COFFEE, COFFEE GROWERS, COMMERCIAL FERTILIZER, COMMERCIAL SEED, COMMERCIALIZATION, CORN, COST OF TRANSPORTATION, CROP, CROP FAILURE, CROP GROWTH, CROP MANAGEMENT, CROP MANAGEMENT PRACTICES, CROP PRODUCTION, CROP YIELD, CROP YIELD RESPONSE, CROP YIELDS, CROPPING, CROPPING PATTERNS, CROPPING SYSTEMS, CROPS, CULTIVATION, DRIVING, ECOLOGICAL ZONE, ECOLOGICAL ZONES, ECONOMIES OF SCALE, FAO, FARM, FARM ACTIVITIES, FARM SIZE, FARMER, FARMERS, FARMING, FARMING SYSTEM, FARMING SYSTEMS, FARMS, FERTILISER, FERTILIZER, FERTILIZER APPLICATION, FERTILIZER DEVELOPMENT, FERTILIZER PRICES, FERTILIZER RESEARCH, FERTILIZER SUBSIDIES, FERTILIZER SUBSIDY, FERTILIZER USE, FERTILIZERS, FIELD CROPS, FOOD CRISIS, FOOD CROPS, FOOD GRAIN, FOOD POLICY, FOOD POLICY RES, FOOD PRICES, FOOD PRODUCTION, FOOD PRODUCTS, FOOD SECURITY, GEODESY, GRAIN MARKET, GRAIN QUALITY, GRAIN YIELD, GRAZING, GREEN REVOLUTION, HABITAT, HERBICIDES, HIGH TRANSPORTATION, HYBRID SEED, IFPRI, INTERCROPPING, INTERNATIONAL FERTILIZER DEVELOPMENT CENTER, INTERNATIONAL FOOD POLICY RESEARCH INSTITUTE, LABOR DEMAND, LAND USE, LEGUMES, LEGUMINOUS CROPS, LOCAL TRANSPORTATION, MAIZE, MAIZE FARMERS, MAIZE PRODUCTION, MAIZE YIELDS, MANURE, MILLET, MIXED CROPPING, NITROGEN, NITROGEN FERTILIZATION, NUTRIENT MANAGEMENT, PESTICIDE, PESTICIDES, PLANTING, POOR FARMERS, POPULATION DENSITIES, POPULATION DENSITY, POULTRY, PRODUCE, PRODUCTION SYSTEM, PRODUCTIVITY IMPROVEMENTS, QUALITY SEED, RICE, RICE MILLS, RICE PRODUCTION, RICE YIELDS, ROAD, SEED, SEED PRODUCTION, SEED VARIETIES, SEEDS, SOIL CHARACTERISTICS, SOIL FERTILITY, SOIL QUALITY, SOILS, SORGHUM, TRANSPORT, TRANSPORT COSTS, TRANSPORTATION COST, TRANSPORTATION COSTS, TREE CROPS, TREES, TROPICAL AGRICULTURE, TRUE, UREA, VEGETABLES, WEALTH, WEED CONTROL,
Online Access:	http://documents.worldbank.org/curated/en/2015/02/24048038/increasing-inorganic-fertilizer-use-sub-saharan-africa-profitable-proposition-evidence-nigeria https://hdl.handle.net/10986/21589
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