Reaping Richer Returns: Public Spending Priorities for African Agriculture Productivity Growth by Aparajita Goyal & John Nash

Author:Aparajita Goyal & John Nash
Language: eng
Format: epub

Nigeria

Federal Market Stabilization Program, 1999–2011

The federal government of Nigeria reintroduced fertilizer subsidies in 1999 with the establishment of the Federal Market Stabilization Program (FMSP), after having abolished fertilizer subsidies in 1997 due to their high fiscal cost (Liverpool-Tasie and Takeshima 2013).30 Under the program, which ran through 2011, the federal government provided fertilizer to Nigerian state governments at a 25 percent subsidy. See table 3A.5 for the quantities of fertilizer nutrients distributed through the program each year from 2000 through 2008. The goal of the program was to improve farmers’ timely access to fertilizer, in both quantity and quality (Wanzala-Mlobela, Fuentes, and Mkumbwa 2013). The FMSP was a universal ISP in that there were no targeting criteria, and in theory any farmer could obtain subsidized fertilizer through the FMSP; moreover, there was no cap on the quantity that an individual farmer could receive. But the quantity of subsidized fertilizer distributed to each state was rationed (Takeshima and Liverpool-Tasie 2015).

Table 3A.5 Fertilizer Distributed through Nigeria’s Federal Market Stabilization Program, 2000–08

Year

Subsidized fertilizer nutrients distributed (MT, thousands)

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